We Help Businesses Stay in Business®
2x Increase in Profits
Situation: A $1M Service Company wanted to continue to grow without seeking outside equity investment and also wanted a way to know when to hire new employees and expand into more office space.
Intervention: Manny Skevofilax worked with the CEO to establish a growth plan with milestones based on company profitability. The milestones serve as inflection points to show the business owner when it is financially prudent to hire new employees.
Resolution: Changes were made to the company’s costing methods and sales process which resulted in a 2x increase in profits.
Key Take-away: The business is continuing to grow rapidly and it is self-funding its own growth without the need for outside equity investment or borrowed funds.
Restructured Business Model to Focus on Profit First.
Situation: A $10MM Value-added Reseller had grown rapidly and began to sustain significant losses because payroll was too high relative to its sales volume. The company’s books were not up-to-date and a financial statement was not being produced on a timely basis.
Intervention: Manny Skevofilax was able to update the accounting information and move the accounting system to a new software package that integrated with the sales management software of the company. The business model was changed to focus on “profit first.” Payroll was significantly reduced due to the changes to the business model.
Resolution: The changes enabled the business to begin operating profitably and more efficiently. Compensation was changed to provide an incentive-based pay component for all of the employees in the company.
Increased Profit by Exiting Underperforming Business Line.
Situation: A $6M Technology Company had grown rapidly and was experiencing reduced profitability and a cash flow crunch.
Intervention: Manny Skevofilax streamlined the accounting process and showed the business owner a simpler way to proactively monitor the company’s performance.
Resolution: The resulting analysis identified some areas in the business that were generating losses and helped the business owner to reduce unnecessary expenses and to make the decision to exit an unprofitable business line. Manny Skevofilax negotiated a 300% increase to the business’s revolving line of credit.
Catastrophe Averted.
Situation: A $5M Service Company experienced the sudden death of its majority owner who wore most of the hats in the business. This unfortunate event caused a severe disruption in the business which included its bank calling for the immediate repayment of all outstanding business loans.
Intervention: Manny Skevofilax stepped in to help the minority owner (now the new majority owner) make an accurate assessment of the state of the business. The assessment showed that the accounting process needed to be overhauled and simplified and the accounts receivable collection process was causing cash flow problems.
Resolution: The recommended changes were implemented which made the business profitable again. Manny Skevofilax negotiated with the company’s special assets banker and was able to restore the company’s banking relationship back to normal.
Key Take-away: By implementing the recommendations of the assessment in a very short time frame, the business was able to successfully navigate an unthinkable disruption and it survived.
