Bad accounting, heavy concentration of business in a few select customers and economic pressures forcing changes in service models were all symptoms of the pain being experience by this regional transportation service provider. Advanced Business Coaching provided a thorough Evaluation / Alignment by conducting interviews with clients, team members, vendors and suppliers. With this information, we were able to see a clear picture of the current situation and present a 36 month Road Map to achieve the longer-term goals envisioned by the business owner.
Immediate focus was placed on expense reduction and strengthening the balance sheet of the business. Cutting costs, liquidation of assets and identifying alternative financing options were evaluated and implemented over the first 6 months to stop the ‘financial bleeding’.
During this period, we also searched for an accountant that could deliver accurate and timely numbers that could be trusted. With trust-worthy data, we began to implement weekly Key Performance Indicators that represented potential profit for the business.
During the first 6 months, manual reporting, duplication of employee time and energy were identified. Over the next 2 years software implementation in accounting, dispatch and billing were completed to improve accuracy and productivity of employees.
Development of a new compensation plan for drivers was implemented to reflect more industry standard contributions. Adjustments in employee new-hire process, employee assessments, supervisor deliverables and clear understanding of the roles and responsibilities of all employees created a pro-active environment of growth and profitability for the company. Over the first 12-24 months, regular team meetings focused on short-term deliverables for each department, combined with updates on company successes and failures, created an culture of trust within the team and a willingness to work together to grow the business.
As the business infrastructure was being strengthened, the search for more and different customers was implements. The goal was to not have any customer be more than 20% of margin contribution to the business. All these changes were implemented over a 24 month period. The results were amazing. After 3 years of loosing money, the first year of yielded an 87% reduction of loss and a profit in year 2. Year 3 profits were 87% higher than year 2.
Now that the business has turned around and continued profitability can be expected, the owner is looking to transition the business to a key employee over the next 2-3 years.