Retail and Contractor Tile Company (Northwestern Florida)
- Neither of the stores were profitable and the business had not bounced back after the Great Recession.
- Owners said they worked long hours “and had enough”. They wanted to either sell the business or close the doors.
- The family did not have prior business experience and did not have “the right structure” in place to run the business profitably.
- The daughter of the owners said they were “flying in the dark on how much money they were making on a job.”
- Decisions were often driven by emotions rather than sound business principles, which exacerbated the problems within the business
- We put in place all the systems needed so that the business could be run like a business and gave the business the structure it needed.
- We also gave the owners the cash flow management tools so that they could see the cash flow needs of the company 12 weeks out.
- We also put in a new estimating system to properly reflect all costs to replace the way employees were doing it from the way they learned at other companies, which were not reflective of the costs.
- We gave the owners a way in which they could monitor the sales and margins in real time so that they could make what they called “scientific” adjustments to the margins to drive sales which turned one of the slowest months at the beginning of the year into one of the best months they had ever had.
- Owners summed up the project by saying, “Life is good!”
Welding and Fabricating Company (North Texas)
- Owner had 20 years experience as a welder but didn’t have any business experience. As the business grew, so did his problems.
- Owner said he was “in over my head,” and that while he was making money, he didn’t think he was making the kind of money he should be making.
- Owner decided he needed outside help to increase his profits.
- We re-organized the company into six divisions to make it easier to track all the critical variables so that the owner could easily see what needed to be done to improve his business.
- Owner related, as a result, he was able to turn his weaknesses into profits.
- Company did not have an inventory control system.
- Due to sloppy paperwork some completed jobs weren’t billed.
- Company profits have increased by tens of thousands of dollars as a result of the new systems for inventory control and invoice and billings.
- The strategic tax plan saved him tens of thousands of dollars.
- Owner paid off $750,000 in debt as a result of the changes we made.
- Owner responded that one of the biggest benefits he received was that prior to our work he was having trouble sleeping at night. Now he is able to work less hours, sleep at night and is debt free!!!
Building Contractor (Central Florida)
- Owner had both the business education and experience in the construction industry to start his own company. However, even with his business background and industry experience, he realized both his company and he personally suffered from deficiencies, which were holding the company back.
- Owner decided that the best strategy going forward would be to bring in some outside experts to show him “different ways of looking at things” to give him the outside perspective that he could not provide himself.
- We came up with three critical areas for improvement.
- The company needed to diversify from being solely dependent upon multi-family construction projects.
- Owner needed to run the company and could no longer be responsible for doing all the business development, which would require hiring someone.
- Owner needed to make changes in his management team who were not all in the right positions which maximized their differing skills sets.
- We put in place a new cash management system to help Owner better manage his cash needs.
- We showed the owner, who had been adverse to any debt, how to “leverage debt” for the benefit of a positive cash flow to help the company grow more rapidly.
- We changed the owner’s perception on bidding jobs. Prior to the consulting project, he was focused on maximizing revenue in his bidding process even if the jobs were not always profitable. We demonstrated to him why his focus should be on profitable jobs and put in a new estimating and bidding procedure to ensure all jobs obtained would add to the bottom line.
- With the assistance of our consultancy professional networking system, we had tax and financial professionals create an asset protection plan and a strategic tax plan to reduce his tax obligations.
- Owner said that even though he had a business degree, it did not prepare him to run his company. Our consultants gave him the systems and procedures he needed, which will allow him to double the size of his company this year.
Plumbing Contractor (Central Georgia)
- Owner took over his family’s plumbing business after his parents were tragically killed.
- Service Manager said that he could put in a water heater blind-folded with one hand tied behind his back, but when it came to running the business he didn’t know how to do that.
- Consultants created new systems with key performance indicators so both Owners would know exactly where they were for all aspects of running a plumbing company.
- We created a board with all the plumbers so their performance could not only be tracked by management, but by the employees themselves. This created friendly competition among the plumbers because some wanted to be the best in the company, which helped boost productivity. Moreover, the performance metrics allowed management to review job performance and determine what type of help was needed for individual employees, e.g. the per call production might be really good but the closing percentage could be below the average of other plumbers allowing management to focus on helping a plumber close more sales.
- Owner also noted that we feel like part of his company “family” and that it is reassuring to him that the consultants are always available by text, email, or phone call to help him solve a problem.