30 years of construction experience leading teams of union workers didn’t prepare the new business owner for the stresses presented by this new business. He had run crews and delivered high quality work, but didn’t know what to expect, and all that was involved as ‘the owner’
An existing client referred this business owner to Advanced Business Coaching in hopes that we could provide a path through the challenges being experiencing during the first year in business. After a thorough Alignment with the client, and conversation with team members and suppliers we were able to see a clear picture of the current situation and present a 2 phase plan that addressed immediate cash flow concerns and a plan to achieve the longer-term goals envisioned by the business owner.
Immediate focus was placed on 2 key areas… 1) getting accurate financial reporting from the accountant, and , while that was being accomplished, 2) through ABC strategic partner network, we found alternative funding options for invoices that had been taking up to 120 days to receive payment. The improved cash flow took about 90 days to bring cash flow relief. During that time we met with key vendors, contractors and suppliers to share the plan for improved cash flow. We received additional dating and discounts from 100% to help with the transition from the old way to the new way of making payments. Help from an ABC Strategic partner was secured to address the personal credit repair.
The results from their efforts were just short of amazing. After 120 days, the owners personal credit scores had increased over 120 points. This allowed for options to secure additional equipment financing. As specific jobs were being completed, an ABC profitability analysis was done to ensure the job bid process was accurate and yielding profitable work. This analysis, combined with accurate accounting numbers, let to making changes in the bid process that ensured contracts that could be done profitably.
By the end of the 2nd year in business, revenue was up 102%, cash flow issues have all but disappeared, an additional crew of 4 workers has been hired, net profit has improved to 518% of year 1. Plans for year 3 are extremely encouraging…purchasing land, building a new facility to hold equipment and finding administrative support to allow for more time to develop relationships with clients and team members.