Category: CFO and COO Services
Client: Logistics and Service Company
Drip. Drip. Drip. It keeps you up at night. One drip, it’s ok. Two, it’s fine. Three, it’s beginning to get to you. Four, you have to do something. Five, you don’t know what. When we met the owner of this company, he’d been losing sleep over the financial state of his company. While it was growing, he had a number of “drips”:
- He wasn’t sure that he could afford to hire anyone to help pick up the slack created by growth.
- His bookkeeper didn’t provide accurate and timely financials. On the rare occasion she did, she didn’t explain what they meant.
- There was no cash flow analysis or budget in place.
- His number two hoarded financial information, ensuring all employees had to go through him. And he was demanding a raise!
While growth is a “good” problem to have, it still brings significant challenges. BottomLine helped this owner regain some peace of mind – and much-needed sleep – by:
- Implementing accrual basis accounting so he could rest assured that his financials told an accurate story.
- Identifying which reports he needed and working with the bookkeeper so she could provide him with concise information he needed to make sound business decisions.
- Developing key performance indicators, which helped him compare current month to same month last year, YTD to YTD last year, average annual revenues and expenses to current budget, and margins by product and net profit per piece.
- Working with him to set sales goals and determine strategies and staffing requirements to achieve them.
- Setting up a weekly cash flow process to reduce his dependence on his line of credit.
- Developing a plan to improve #2’s leadership skills.
- Creating a plan to train and cross-train employees.
This owner’s growing business had been standing on tenuous ground. BottomLine helped him build a solid foundation on which to make financial decisions and maintain his momentum.
What happened to this overwhelmed owner?
- He has a reliable system in place that allows him to access essential financial information and use it to make better decisions.
- After a year of working together, he increased his bottom line tenfold.
- The top line experienced a 50 percent boost.
- The owner doesn’t spend all night tossing and turning.
Sometimes a bit of mentorship and strategic analysis is all that’s required to give a CEO some peace of mind, which works wonders for allowing that business leader to get back to strategizing and thriving.