RTO Business Coach

Simple 1% improvements for your RTO success

Your RTO success is determined by the way you manage the business, and support your team. If you want your RTO business to be a success and more profitable than ever before, here are some suggestions for how to make it happen. Some strategies are for the longterm, others you may see a difference right away. Building a successful business is a marathon, not a sprint.

Have you ever asked yourself what 1% change in your business would do to the improve cash flow or your business?

When it comes to streamlining work and reducing waste in a business, the continuous improvement business strategy is lauded for its effectiveness. So I’ve put together some ideas for you to consider how it can be applied to your business.

Improving your business comes from any or all of these 3 areas:

– selling more products

– selling products at a higher price

– reducing costs / over heads 


The Kaizen model

Looking at the Kaizen model which is a synonym for continuous improvement, it is noted that the three main points of kaizen are:

  1. Feedback: A core principle of the process that involves self-reflection.
  2. Efficiency: Identify, reduce or eliminate anything that gets in the way of the process.
  3. Evolution: Kaizen depends on incremental, continuous development instead of a great leap forward.

Everyday business improvements can make the success of your company. Incremental Change, the slow and steady progress is the most innovative. It helps apply change easier, as well as giving the reins to the business rather than having to respond to external forces.

So here are 7 steps you can take to work on business improvements as quickly as possible.

1. The way how you communicate to others.

Often one of our biggest hurdles is the way we communicate ideas to others. Yet this is core to our success. Communication in this instance is to staff, colleagues, and potential clients. If we make improvements to that communication, we will see a greater take up of our services/products. Try changing just 1% – one small change each week.

According to recent studies, 51% of customers will not repeat business with a company after a bad service experience. It also takes several positive customer experiences to make up for one negative one. So communication is key for your RTO success. 

2. Regular communication

This one follows with the first point. You need to have regular communication with all of your staff. When I’ve started in new Management roles that is the first thing I always implement. I want to know what is going well, what isn’t going well, and what we need to keep doing. Ideas from the people working on the frontlines of the company’s efforts are more attuned to how to improve process than an outside consultant. Consequently, you need to be asking your employees to be looking for ways to improve performance. This is key to your business success – seriously it is. This step starts the culture around improvement initiatives.


3. Price Increase

What would happen if you increased your prices by 1%? You might think that customers will run, however the reality is, customers will probably not even notice. So what can 1% bring you and your RTO success? Extra cash. Give it a go.


4. COGS Reduction

If you have goods or direct costs for your services, then investigate if you can reduce the price of them by 1% or more. If you are purchasing items for your RTO then maybe you could buy the items in bulk and receive discounts for those purchases. When you buy in larger quantities you will often be able to take advantage of quantity discounts. 

Another consideration could be to substitute lower cost materials where possible. Technology is constantly improving, and updating materials, tools, apps, etc. Prices move up and down due to supply and demand, and processing methods change. It is a valuable exercise to do an audit on your COGS. 


5. Overheads Reduction

Business overhead costs are expenses that are related to the day-to-day running of a business. Reducing overhead costs is important for your RTO Success, and when you see a business downturn.

Consider what operating expenses do you have that can be reduced?

Software – Cost of software, unused subscriptions, unused space? Whatever it is, consider if it is actually needed, and reduce or remove it if it isn’t.

Rent – lease costs of the business premises (or mortgage costs if purchased). 

Insurance – Every business needs insurance coverage, expecially an RTO where it is mandated, yet there are many solutions to meet the RTO Standards. 

Utilities – include electricity, gas, water, sewer, phone and internet service. 

Office supplies – such as computers, copiers,  binders, stationery and other items used within the office 


6. Reduction in Debtors Days day(s)

Good practice debtor management is critical to every business that sells on credit. It is important to remember that a good customer is only one that pays. If the business is not collecting the cash from customers, then the business is funding the customer’s business as well as its own. Consider ways to improve the collection of your debtors faster.


7. Volume Increase

Sell more units. There are two ways in which this can be achieved:

  • increasing level of sales to existing customers
  • sourcing new customers

Consider how an increase of 1% can be implemented for one of these areas.

Brain storm

Brain storm these ideas with your key staff. They also will have great ideas – ask them and see what they come up with. Trial their ideas, so they realise you care about what they say. Let them know the results. As a leader, you don’t have to be the one who comes up with all the great ideas.

Let others help you, and you’ll make your life much easier, as well as theirs.


There is no one thought, technique or methodology for business improvement that works for everyone, however there are certain business improvement techniques that when harnessed together and implemented correctly, will ensure business success.

I’m keen to hear how you made an Impact to your business. Let me know.



Contact Merinda

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