Rapid Growth

Opportunity

A consumer products firm was growing rapidly but not making money yet.  We came on as head of finance and operations, to be the inside person to add to their strengths in sales/marketing, production and product development.  

Action

We looked at their operation and revamped the customer service, warehousing, purchasing and IT areas in to allow the company to grow with only modest increases in their non product costs.  We also suggested a change in their marketing strategy on how they priced their product.  In addition, we lined up new financing, changing them from factoring to a line of credit.

Result

In the next year, the company grew over 400% and earned their first profits.  The operating improvements and the pricing change were instrumental behind making the growth possible.  Without the infrastructure changes, the company could not have handled anywhere near the increase in sales volume.  Their new product would not have been able to become the fourth best selling product in their industry that year.