PRIMARY: Cash planning and control
SECONDARY: Help improve day-to-day operations

INDUSTRY: Commercial drywall installation

COMPANY: > $2 million a year in sales

SITUATION: A great promoter, the owner had started several prior businesses and had been able to quickly grow sales to $10 million but each company lacked the internal controls needed for long term success.

• The company was behind on it's payments to the bank
• Tax debt was increasing
• Accounts payable had fallen behind terms
• The bank had pulled out of standard financing

SCOPE OF WORK: Steele Development was brought in to develop a cash flow plan, assess the company's short and long term viability, develop a finance plan, negotiate debt with taxing authorities and vendors, assist in reducing fixed overhead, help control production costs and improve profitability.

TASKS PERFORMED:

• Within three weeks SDC developed a cash flow plan and 12-month budget based on known business operations.
• A strategic plan was developed which limited sales to $3 million a year with an emphasis on profitability.
• Vendor payment plans were negotiated and allowed the company time to secure additional financing.
• SDC determined that the company-owned facility was larger than needed and brokered it's sale.
• Using the Cash Flow model, costs were broken down into cost groups assigned to managers who were held accountable for results within acceptable limits.
• The strategy for a smaller company was to spend more time training employees, shift responsibilities and allow the owner more time to manage the company's strategic direction.
• SDC interviewed each employee to determine their strengths, weaknesses and where their greatest contribution would be to the company's success.
• Under SDC's guidance, the company cut overhead by eliminating expensive middle level managers and spent more effort developing front line staff.
• Training focused on developing employee strengths and unifying the teams's efforts in reaching corporate goals.

RESULTS: Instead of hundreds of thousands of dollars in debt, two years later the company is routinely profitable and has several hundred thousand in the bank.