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CLIENT STORY // 01
Challenges: 1) Struggles with Cash Flow,
2) Employee Retention
3) Price war with Competition.
1) Need more sales
2) Poor work ethic, not like good old days, Can't afford raises
3) Competition has better Sales team, more advertising, Buying power
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,
A/R & DSO was far too high, only looked at Income Statement.
They feared their vendors.
2) Employees lacked direction.
No Training program in place,
Employees feared the boss.
There was no documented Incentive Plan, No Defined Carrot for them.
3) No leverage on Vendors for better pricing or advertising.
No real pressure to close Sale or stay in front of customer.
Took reactive approach to meet competitors price vs selling value.
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.
Utilized Line of Credit, Improved Vendor terms & rebates, Dedicated training weekly occuring, New Bonus Plan & Sales Goals with compeition & 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 STORY // 02
Challenges: 1) Needed Business Plan (Revised) for Funding
2) Validate costing of materials, assembly & cap assets
3) needed Cash flow projects, Sales Forecast & Budget
1) Assumptions made on costing & time to market prematurely
2) Needed to meet time lines to receive initial round & move forward
3) Aggressive Sales required to retain majority ownership
4) Set with vendors to produce goods & bring in for just assembly.
1) Cost basis was 5x original estimation,
As a result, Sales Pricing & Forcasting would also dramatically change.
2) Dollar vs Euro was unfavorably impacting Assets & Raw Material costs
3) Need more funds to produce products and bring to market increased.
4) Needed to alert investors ASAP
1) Sense of Urgency needed by 100% of team. Communicate confidence!
2) Meetings on savings & alternatives daily to show progress
3) Battle on 2 fronts, only 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.
4) Work with VP Sales & Ownership to justify sales price increase to buyers & distributors. Drafted revised Cash Flow Forecast, Sales Plan & inventory turns with production schedule/ capacity on reduced Cap Assets bought.
5) Establish plan to delay other staff hires & extra shifts. Management / Ownership gets hands dirty to make it happen.
6) Provided options for other sources of funds.
Successfully received full funding from investors,
Reduced produce costs in half. Increased Sales Prices,
Owners delayed hiring workers doing work themselves initially to get product made & shipped.
Clients, Customers, Vendors... the Goal is Partnering! Working together to provide a shared benefit on a recurring or as needed basis. When you call us or we call you, there is trust & mutual support. Below are just a sampling of our 'Partners'. Out of respect for our clients, we anonomously share their challenges, our findings & the solutions / results we delivered.