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War
Story #1
Business
Type:
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Wiring & Cable Installation
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Challenge:
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Needed financing for growth
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Work Performed:
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Prepared business plan; Improved financial
reporting; Hired Controller
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Benefit Provided:
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Secured Financing; Better controls; Better
reporting
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Long-term Result:
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Company has doubled in five years, improved
profits through pricing, and returned better cash flow management
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Cash flow for this client was so tight that
they had been paying fines and interest on their payroll taxes due to late
payment. They had never obtained a line of credit (their accountant never
advised them and they didn't think they could get one) to support their growing
accounts receivable (resulting from sales growth - not poor collection
practices. The business also had been growing at a slow pace because there
seemed to be a "just getting by" mentality.
By reviewing the company's operations (i.e.
giving it a "physical"), discussing the benefits of going through the
"process" of developing a business plan (i.e. developing goals and
implementation strategies), and reviewing the various alternatives for financing
growth, the management team was able to get "motivated" and
significantly grow the business.
A line of credit was obtained, a new controller
was hired (as an integral part of the top management team), and the roles of the
owners were better defined and utilized.
Back to war stories
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