Trusted #2 to CEOs. We Solidify Values & Implement Strategies 1 company at a time coaching & consulting.
Business Consulting Partners / Clients
Business Consulting Success Stories
Client #1
Challenges:
1) Struggles with Cash Flow,
2) Employee Retention
3) Price war with Competition.
Perceived issues:
1) Need more sales
2) Poor work ethic, not like good old days, Can't afford raises
3) Competition - better Sales team, more advertising, buying power
Our Findings:
1) They didnt know true cost basis,
They only looked at market level pricing.
As a result, Margins were falsely inflated.
No focus on Cost side of equation. Overtime was out of control,
2) A/R & DSO was far too high, only looked at Income Statement.
3) They feared their vendors. No leverage on vendors for better pricing or advertising support.
4) Employees lacked direction.
No Training program in place,
Employees feared the boss.
There was no documented Incentive Plan, No Carrot for them.
5) Poor Communication overall.
No real pressure to close Sale or stay in front of customer.
Reactive approach to meet competitors price vs selling value.
Our Solutions:
1) Communication & Training to/from the top-down became weekly requirement on many subjects (a new norm) = Urgency, Accolades, Transparency, Safety.
2) Drafted Sales Plan, Accountability meetings & fully costed Incentive plan
3) Significant coaching for Owners, mindset change. Not too busy, worth time
4) Partner & challenge vendors.
5) Offer savings to customers for Prepaying,
6) Leveraged Banking partners,
7) Big investments = Time & Norms changing. Minimal new assets required.
Results:
Utilized Line of Credit, Improved Vendor terms & rebates, Dedicated training weekly occuring, New Bonus Plan & Sales Goals with competition & transparency. Monthly accountability, Driving quicker closings, increased sales, Changed CC processing partner. Changed pricing on products, Re-focused marketing to existing customers with incentives. Owners holding each other accountable!
Client #2
Challenges:
1) Needed Business Plan (Revised) for Funding 2) Validate costing of materials, assembly & cap assets 3) Needed Cash flow projects, Sales Forecast & Budget
Perceived issues:
1) Assumptions made on costing & time to market prematurely
2) Needed to meet time lines to receive initial funding round
3) Aggressive Sales required to retain majority ownership
4) Set with vendors to produce goods & bring in for just assembly.
Our Findings:
1) Cost basis was 5x original estimation,
As a result, Sales Pricing & Forcasting dramatically changed. 2) Dollar vs Euro was unfavorably impacting assets & material costs
3) Need more funds to produce products and bring to market.
4) Needed to alert investors ASAP
Our Solutions:
1) Sense of Urgency needed by 100% of team.
2) Communicate confidence!
3) Meetings on savings & alternatives daily to show progress
4) Battle on 2 fronts, won with honesty & demonstrated hard work.
a) with investors, being honest & asking for time & justify funds
b) R&D, Production & Sales (for Distribution) challenge vendors, & look for other avenues to get work done quicker & cheaper.
5) Work with VP Sales & Ownership to justify sales price increase to buyers & distributors.
6) Drafted revised Cash Flow Forecast, Sales Plan & inventory turns with production schedule/ capacity on reduced Cap Assets bought.
7) Establish plan to delay other staff hires & extra shifts. Management /Ownership gets hands dirty to make it happen.
8) Provided options for other sources of funds.
Results:
Successfully received full funding from investors for minimum change in ownership%.
Reduced produce costs in half. Increased Sales Prices,
Owners delayed hiring workers, doing work themselves initially to get product made & shipped.