The owners had purchased their business 20 years earlier and had struggled with slow to no growth and little to no profitability. They had invested the bulk of their personal savings into the company to bolster cash flow. They had a small loan facility with a national bank that was unwilling to extend further credit. In addition, several new competitors had come into the market, increasing price pressure.
STRATEGIC PLAN EXECUTED:
CCA analyzed their market position and the performance of multiple client groups. They concluded that the greatest opportunity for growth and profit was a primary focus on the construction industry (general contractors) and secondarily to schools. The plan created a “machine” for bidding and executing projects, and included the following:
- Engaged digital marketing companies for lead generation
- Created teams of sales and project management, added an estimating department
- Carved out territories to eliminate conflict and confusion
- Significantly increased the “funnel” of deal flow
- Developed weekly reporting on bookings, forecasted revenue, cash flow
- Created budgeting process, monthly reviews of performance
- Implemented personnel review system and year end bonus plan
CCA secured $1M in asset based working capital line from finance company.
END RESULT – Significant Increase in Profitability:
Improved sales productivity, almost doubling revenue in 3 years.
Went from $207k loss to $200k profit in same period.