The Manufacturer on the Brink
The Client
A BC based manufacturer with 120+ employees.
The Problem
Significant monthly operating losses and very serious cash flow shortage.
The Major Risk
If monthly operating losses continued, they will lose the support of the lenders. Obtaining new financing will be extremely difficult.
First Step, Critical Diagnosis
Profit360's proven methodologies were implemented, and the assessments discovered that;
- The leaders were attempting to grow the business by lowering selling prices. This strategy eroded the core business. Gross margins had declined significantly while operating costs had increased. These strategies resulted in monthly operating losses.
- Most essential elements for effective management systems were missing.
The owners knew that profits were declining, however, there was a very significant lack of actionable information.
Final Result, the Payoff
After Profit360's services the following results were achieved;
- Profit improvement strategies were working.
- Support from the lender was maintained.
- 5 consecutive years of 20% sales growth was achieved.
- Record profits were achieved and sustained.