MAKING YOUR CASH FLOW!

CASE STUDY - PRODUCT MANUFACTURER

 

SYNOPSIS

COMPANY Manufacturer of Locker Organizing Products
3.1 Million Sales | Very Seasonal
SITUATION

Company had a history of profits, but during the prior two years had incurred large losses totaling $800,000/year. The company was not bankable.

RESULT
  • Improvement in Cash Flow
  • Vastly Improved Morale
  • All Employees Stayed w/Company
  • New Lending Relationships Were Sought & Secure
PROGRAM  
ASSESSMENT 3-day assessment evaluated product quality and viability, markets, personnnel, expenses and management.

Compamny was shown to have viable product, excellent market channels, excessive management compensation, very poor leadership and excellent employees.
PLANNIING The Board of Directors elected a new CEO. Worked with the new CEO to develop a program to return the company to profitability. A new President was brought in to work day-to-day with current employees while the consulting entities focused on developing better morale and employee working relationships.

A plan was developed to evaluate vendors, reduce costs and improve deliveries.  
EXECUTION Personnel were asked to partcipate in several sessions aimed at improving working relationships strained by two years of poor results and subsequent management brow beating. Team selling was stressed.

New vendors were sought and evaluated; several were hired. Costs were reduced at the cost of goods level.

Expenses were reduced and monitored. Board members cut fees and new financing was arranged to replace the factorers.

Sales were planned around deliveries to customers as were inventories.

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