My Clients Had Incredible Results in 2020!
Did you know that in January 2020 I transitioned from project-based work to 12-month programs?
The decision came after working with several clients in 2018 and REALLY wanting to stay connected to them, to their progress and their business outcomes. I had a hunch that long-term working relationships could produce better results (and that I’d like that type of work better too). In 2019 I continued my project work, and started beta-testing 12-month programs/services.
The longer programs allowed for consistent check-ins, accountability and support that produced better financial and business outcomes for my clients, and gave them confidence around their numbers and decision making that simply couldn’t come with shorter project-based work.
In December 2019 I made it official and announced the new service. Two business owners signed on right away and worked with me monthly throughout the year.
Additionally, in late February, our first member began the Financial Success Formula Program.
Last week I compared the 2019 vs. 2020 financial outcomes for these 3 businesses, and…
The results are pretty incredible!
Some facts about the businesses:
1 is a CPG brand utilizing a co-packer, 2 are food producers selling wholesale and direct to consumer
They are all young brands with 2019 annual sales between $60,000 - $140,000
1 producer had consistent revenue across both years, the other two businesses had revenue growth of $95k and $172k.
ALL businesses had individual profit margin increases of 18% or more!
The Stats!
Average Revenue Increase 2019-2020 across all three businesses: $89,120
Average Year over Year Revenue Increase: 86.7%
Average Reduction in Cost of Goods Sold: 10%
(from 48.64%-38.18%)
Average Profit Dollars earned:
2019: -$1,080.78
2020: $52,582.25
Average Profit Margin:
2019: -3.09%
2020: 23.80%
Average Year over Year Profit Margin Increase: 26.88%
I am looking forward to tallying new data each month as additional members complete their 12-month programs!
An important note:
2020 was not without its hardships, and Sarah Delevan Consulting saw clients and members struggle due to Covid-related restrictions and the harsh effects of the wildfires in Northern California. A few members of our community closed their doors, moved their families, and paused to sort out IF and when they could return to business and what that business would look like.
So much of what happened last year was out of their control, and it’s important to me that we acknowledge that as well as celebrate the successes of these three business owners.
This data provided within this post is based on three business owners that actively worked with us monthly throughout 2020.
About the Author: Sarah Delevan is a Food Business Financial Coach and Consultant with over 7 years of working in the food industry. She received her MBA from Rollins College and In 2017 she founded Sarah Delevan Consulting based in Los Angeles, CA and serving clients across the United States. She is the creator of the Financial Success Formula and the founder of the Profitable Food Business program as well as the host of The Good Food CFO Podcast. To learn more about Sarah and opportunities to grow a more profitable food business Click Here.