Start Up Plumbing Products Company
Scenerio
Start-up company marketing a unique environmentally sound plumbing product that reduces water consumption by 20% and is distributed world wide. SB Consulting was retained to serve in an advisory capacity working with owner/partners to develop the business model, as well as develop the investor prospectus during the fund raising portion of their start up.
Solution:
Working with the partners we developed a five (5) year business model for a private placement offering that included capital investment requirements and expenditures, sales budgeting and long term operating profiles, human resource and IT requirements, short and long term cash flow needs, and ROI for investors.
Results:
The Company has received its initial phase of financing and is on track to realize in excess of $1 million in sales revenue during its first full year of operation. SB Consulting is continuing to work with this highly successful firm in an advisory capacity.
Precision Machine Company
- Revenue increased $200k in 12 months.
- Realized positive cash flow and 5% profit after two (2) years of losses.
Scenario:
A family owned and operated precision machining and manufacturing company, generating in excess of $1 million in annual sales revenue. Sales were declining and the company lost money two (2) years in a row. The company lacked a business plan, didn’t track profitability by customer, didn’t have an operating budget to measure performance and was experiencing significant inefficiencies in manufacturing.
Solution:
We assisted the Company in completing a detailed tactical and strategic business plan. Included in the plan was a monthly and annual budget, a sales budget was established for each customer, a budget for direct and indirect manufacturing costs was agreed, unprofitable customers were dropped. New overhead rates were put in place, and quotations to customers were issued based on target margins established for the budget. Job descriptions were established for each employee, the sales and marketing approach was overhauled, and regular employee meetings were held.
Result:
Over a one year period the Company grew 15% in sales revenue and reversed their losses, producing positive cash flow and a 5% profit. New high speed equipment was purchased, reducing overhead and having a positive impact on profit. SB Consulting continues as an advisor and works regularly with the CEO and owner of the business.
Commercial Cleaning Service
- Revenue increase 300 % the first year.
- Owner reduced personal number of hours worked
Scenario:
This Commercial Cleaning Company was a one person operation using part time help as needed. The Company had sales of $2,500 per month, a limited number of customers, and the owner was doing the cleaning, the books and all of the associated activities to run the business.
Solution:
After meeting with the owner to understand her objectives, and the vision she had for her Company, we then assisted her in writing a business plan and sales strategy. Because of the number of competitors in the commercial cleaning market, we felt that the development of a strong brand recognition marketing program, as well as a sales program geared to specific niches would be effective. The Company’s brand was developed, marketing materials were improved, and an aggressive direct sales effort was initiated.
Result:
Revenues increased from $2,500 per month to $9,000 per month, and the owner was able to bring on three (3) full time employees. The owner was able to concentrate more on sales and customer development, was able to reduce the number of hours cleaning with her staff, and uses that time to manage her growing business.
Electrical Cable Manufacturer
- Sales Revenue grew to $1 million in 2 years.
- Cash flow positive within 6 months.
Scenario:
A UK electrical cable manufacturer producing specialty cable wanted to develop and have a presence in the US market. The owners recognized the opportunity, but didn’t product approvals, nor did they have a formal business plan, budget or strategy for growth. Their competition was a well established single source supplier that wouldn’t give up market share easily.
Solution:
We assisted the Company in developing the product portfolio that best matched up with their US competitor. Because of the many certifications and testing requirements necessary, we worked with their engineering staff to coordinate a program that achieved all of the approvals required before product launch. A comprehensive business plan, monthly and annual budget, and sales program was put in place. We actively participated in hiring independent sales agents, and set sales targets for each representative. Weekly flash reports were created to give management up to date financial sales performance reports.
Result:
Over a two (2) year period the company increased revenue to over $1 million, cash flow was positive, and market share increased to approximately 10%. We participated with screening and hiring twenty (20) independent sales agents in the US and Canada, that added significantly to the company’s sales revenue growth. The Company achieved their primary objective of establishing themselves as a viable competitor and supplier to the North American market..
Franchise Construction Cleaning Service
- $750k in private equity raised.
- Owner converted existing business into a franchise opportunity.
Scenario:
This Construction Cleaning Company located in Southwest, FL had identified a unique market to provide pre and post construction cleaning services for large multi level hi rise condominium projects. The Company had increased sales revenue significantly in a five (5) year period, but in order to support and manage growth outside of their primary market they needed to consider other strategies.
Solution:
We assisted the owner with defining his vision for the business, and articulated that vision in the form of a business plan with long term revenue and financial expectations. After we had established and agreed on a business model, we then developed a financial model to meet the revenue expectations five (5) years forward. We identified two specific barriers that needed to be overcome, and that would be fundamental to achieving the owners goals: the capital requirements to open new offices in other high potential markets was prohibitive; the brand image and Company recognition needed to be enhanced to support the revised strategy. The conclusion was that the Company had a product and had developed a model that could be franchised.
Result:
To launch the project required the establishment of a separate entity and an LLC was formed. A private equity offering to raise $750k in start up funding was completed, a Franchise Development Manager was recruited, and the program was launched. The financial impact was immediate with revenue coming both from franchise fees as well as regular and increasing royalty payments against franchisee revenue.
When I decided to form SB Consulting, I did it with the intention of using my years of experience to help companies who are eager to improve performance and succeed, but may not have the time or the resources to accomplish the task at hand.