BUILD THE ENTERPRISE
YOU ALWAYS ENVISIONED
Business Type: Transportation
Overview: The client had been in business for several years and was moderately profitable. Growth of sales and profits had slowed plus the owner wanted to remove himself from “technician mode” to manager. Empowered Business Coaching was engaged to help the client better manage his operation, increase the rate of growth of sales and profits and assist with developing a strategic plan.
What We Did: The client did not have an effective KPI system to measure the activities and effectiveness that lead to better profits and growth. We set goals for all employees and established an effective KPI system to measure their performance. This had an immediate effect as the performance of most employees improved which improved sales, productivity, and profitability. We also established and documented operating systems to improve the effectiveness of the business.
The Result: Sales increased 2X and profits increased 5X over a 4 year period. As sales and the number of employees grew the owner was able to maintain control of the business while being able to take vacations and days off, improving overall work/life balance.
Business Type: Manufacturing
Overview: This company was in business for 20 years and struggled to break even and constantly struggled with cashflow. Empowered Business Coaching was engaged to assess the business to identify areas of improvement, recommend solutions and to help implement the actions needed to improve business performance.
What We Did: We conducted an analysis of the financial statements and researched benchmark performance for the client’s sector. We found that the cost of materials was very high compared to the rest of the industry. Although there was very little data available we were able to estimate the true cost of producing the product. We found that 20% of the product produced was being sold for 20% less than cost. We also found that the client had not increased prices for 5 years fearing rejection by the customers.
The Solution: With some encouragement, we increased prices by 5% which was accepted with no resistance from customers. We have increased prices by 5% per year the past 3 years. We also focused on actions to reduce waste and to start collecting data from the manufacturing floor to measure the effectiveness of our actions.
The Result: The client’s profits increased from a break-even level to generating a profit of over $250K in the first year and it has been growing each year for the past three years.
Business Type: HVAC Sales: $2M
Overview: This client grew very quickly within a few years. The business was in a negative cash flow position losing over $50K per year and was in danger of being shut down within 6 months. Empowered Business Coaching was engaged to assess the business and develop a 90 day turnaround plan to save the business.
What We Did: After conducting a thorough financial analysis of the company it was found that there were enough sales to be profitable but there were too many employees not producing enough output to justify their positions. As many as three technicians were being kept on the payroll year round when they were only needed for 2 to 3 peak months per year. There were also 2 people in a 4-person office sharing the same job.
We recommended that client lay off three Technicians and one office person. We also improved communication with the remaining Techs to increase productivity.
The Result: Within the 3 month period the company started to produce positive cash flow and is now focusing on growth.