Over the years Gary’s strategic mindset has guided business owners through their business challenges by providing the clarity needed to produce profitable results. The following case studies are examples of how bridging the gap between current reality and desired future drives business success to the next level.
I was initially called in to evaluate the COO in this business and to coach him for success. In the process of interviewing the CEO, he realized that he was in need of coaching as well. The business was not running as well as it could. Once I started my work, I realized that there were deeper issues affecting the entire business and though discussions with the CEO it was decided that I would drill down a little deeper.
After a complete business analysis it was discovered that the business was on the verge of bankruptcy. The CFO was incompetent and did not understand the financials. The CEO didn’t know they were in such bad of shape, their banker didn’t know, the CPA didn’t know and neither did the employees. The business was not generating sufficient revenue to cover their immediate debts. They were deep in debt and had a large amount of unsold inventory that had already been paid for or was owed money on. The rent on their current facility was going up by 200% and they couldn’t afford the current rental expense. The business had diversified into multiple other businesses that were draining their cash.
We immediately downsized the operation by letting the CFO and four out of the eight employees go. We acquired a much smaller facility at a fraction of the cost and moved the business cutting the rental expense by 150%. We began selling off surplus inventory to generate cash to pay vendors and reduce debt. We closed the other businesses that were a huge cash drain and got refocused on their core business.
As a result of reorganizing the business they were able to avoid bankruptcy and start paying down debt. The business refocused on their core competency and eventually let another employee go reducing cost any further. Currently the business is running much better, reducing debt and generating positive cash flow.