Adept Financial Management Averts Closure Threat
Startup company was near bankruptcy and had exhausted founders’ equity and lines of credit. Cash reserves had diminished to less than $50K.
Established financial control and revised sales strategy from direct to reseller. Developed financial model, business plan and private placement memorandum. Traveled to major markets, briefing angel investment groups.
Raised an initial $500K with commitments up to $1.5M additional based on meeting metrics. Company brought to profitability without the need for the second round of funding.
Marketing Initiatives Reap Major Revenue Boost
Professional services division of Dell Computer was losing money for three consecutive quarters due to technical staff not billing hours. Division had been established for less than a year, and implementation philosophy was to build a top-notch technical staff and clients would come (aka Stealth Marketing). Enterprise hardware sales groups were not integrated and/or not aware of the services group capability to support pre- and post-sales engagements.
Developed and implemented internal marketing campaign to provide sales force with the necessary knowledge to sell implementation and support services. Built a sales pipeline based on recent enterprise hardware sales. Implemented process for sales team and method for closing professional services contracts. Implemented project office for overall coordination and ensuring follow-on hardware sales were clearly integrated into process.
Within first year, boosted quarterly revenues from $160K to more than $1.7M. Billable hours for the technical staff grew from 10% to nearly 90%.
Resource Outage Elimination Returns Stellar ROI
National manufacturer was experiencing consistent computing resource outages at corporate HQ as well as manufacturing plant locations. Adverse financial effects at HQ included inability to book orders from field sales force. Manufacturing plant shop floor data collection and automation would shut down completely. Due to business downsizing and outsourcing of all technology support, there was little communication between corporate and multiple outsourcers.
Designed and implemented project management office consisting of single point of contact from all major functions. Billed personal hours as interim Operations Manager and Chief Technology Officer, reporting to the CIO. Conducted tactical daily meeting with all outsource partners. Conducted weekly meeting with all outsource partners and key business unit executives. Developed and implemented plans to stop the immediate bleeding and upgrade all infrastructure and process components throughout HQ and 29 plant locations.
Corrected computer resource outages from a low of 60% availability to 99.999% and network resource outages from 35% availability to 99.999%. Established change management process requiring appropriate approvals before any alteration to the environment could occur. Realized ROI on technology and process investment within nine months. CFO articulated ROI of $1.5B to $2B.
IT Reorganization Amplifies Profitability
Company was experiencing computer mainframe outages on a daily basis during prime hours, adversely affecting the entire business. Primary revenue loss was for sales force and call center operations, with ancillary adverse effect to all other backend systems. Executive staff and business unit leaders had no clear direction or understanding of skill sets and motivators for high-tech staff.
Interviewed and assessed staff of seven directors and 150 total IT personnel. Assessed network and operating system technology infrastructure with a focus on single points of failure. Reorganized staff initially in a matrix scenario to evaluate individuals’ overall performance in specific disciplines. Right-sized staff and subsequently organized into teams supporting all fundamental disciplines of IT services. Interviewed business unit executives to determine perceptions, realities and basic requirements for each unit’s success. Designed and implemented technology infrastructure based on business requirements.
Actions supported sales revenue increase from $1.5B to $3B, decreased IT annual expense by more than $4M, and enhanced staff turnover from 35% to less than 10%.
Strategic Alliances Sustain Growth & Double Revenue
IT services company was receiving more requests for custom services implementations than could be supported by internal technologists, after instrumental role in bringing Dell Technology Services to profitability. Hiring top talent as full-time equivalents would not fulfill timing requirements generated by the hardware sales groups.
Developed a Partner Management strategy wherein the company could subcontract with some of the nation’s top IT services organizations. Negotiated contractual relationships with the likes of KPMG, IBM Global Services, Schlumberger and various small to medium niche technology providers.
Doubled revenue after nine months of implementation.
Technology Partnership Sparks Lucrative Global Network
VF Corp. was in the process of acquiring multiple companies and sites around the world, and was experiencing initial difficulty complying with SEC requirements for accomplishing timely financial consolidation reporting from all sites to the office of the CFO. Technology available at the time was limited due to proprietary architecture and overall expense.
Developed partnership between IBM, Cisco and Network Solutions to develop a peer-to-peer network that would flow across an SNA network backbone and utilize an email-like application to communicate Lotus spreadsheets. Designed and implemented worldwide network supporting 260 locations and 40,000+ users.
Consolidated all data centers’ computing platforms, including IBM Mainframe, AS/400 Intel-based and RS/6000 into one location, realizing economies of scale for all VF Corp and subsidiary locations. After 12 months of operation, network and computing platform consolidation reaped annual savings of more than $500M.
Investment Planning to Quadruple Company Growth
Client had grown digital products integration to $2.5M per year while remaining a "Mom and Pop" organization. Client desired to raise private equity and grow the company to $10M within three years. Owners were reluctant to give up the amount of equity required by sophisticated investors.
Analyzed all aspects of business operations. Built business plan with 10-year historical financials and five-year market strategy. Scheduled and facilitated meeting with individual and group angel investor groups.
Company realized $4.6M the following fiscal year. Current expectation is to reach the goal of $10M without the need for an additional round of funding.
Sales Force Automation Bolsters Revenue
National sales force was depending on FAX, phone and US Mail for managing customer relations, orders, etc. Entire sales force was located remotely from corporate HQ.
Researched current technology deployment, and designed hardware infrastructure supporting dial-in support for e-mail. Designed and implemented centralized sales force automation with customer relationship management capability utilizing Siebel systems. Implemented project to upgrade all sales forces during mandatory regional meetings.
Increased corporate revenue by more than 25% within 18 months of project completion.
Strategic Planning Positions Company for Acquisition
Founded company and acquired exclusive sales and marketing rights to a decontamination product developed by Sandia National Laboratories. Product and services were well before the horrible events of 9/11/2001, therefore market acceptance was slow and encumbered by competitor pricing.
Although the product DF-200 was 100% proven and ready for market into government agencies, EPA was slow to certify for consumer use. Adoption by the nation’s first responder community was sluggish and low in volume.
Diversified by acquiring the patent for a natural fertilizer product and developed a market strategy that focused on the beginning stage of horticultural industry sales channels. Positioned company for acquisition by moving company headquarters to Homestead, FL, where the largest commercial growers in the Southeast are located. Designed company structure and developed market plan with a strategy to be acquired within five years.
Company has executed to plan and is now being considered and positioned for acquisition by a national company.
Cross-functional Contract Teams Outstrip Incumbents
Selected by Senior VP of Federal Systems to lead business development into Navy and Air Force government vertical markets. Incumbent contractors were politically entrenched in the process and company required business intelligence on weaknesses that could be exploited to win contracts.
Division was well known for small to medium contract success and desire was to bid and win $50M+ contracts. Developed multidivisional, multidiscipline project teams leveraging cross-functional talents. Bid on four major contract awards within nine months.
Won two of the four contracts as prime and one more as a sub. Resulted in overall revenue of $100M over three-year term.
eCommerce Strategy Doubles Revenue
Company was struggling with competition’s ability to sell product online, thereby reducing overhead and ultimate cost to buyers. CEO lacked vision of the value of e-commerce
Convinced senior management to design and build an online system that would provide clients with the ability to view inventory and availability combined with open-source availability of competitor’s product line, thereby providing one-source shopping for fully integrated solutions.
Within one year, revenue increased from $1.4B to more than $3B.
Startup Development Secures Major Defense Contract
Joined startup company that was attempting to develop business in the Federal/DoD market space, while spending significant amount of capital on software product development and light manufacturing. Company was burning $150K per month with no clear outlook for return on investment, and had a typical government contractor startup philosophy of throwing multiple capabilities against the wall and waiting to see what sticks. Typically, this method drains the company of capital and results in business failure.
Analyzed financial profile, including burn rate and cash reserves. Developed a plan to spin out the manufacturing component of the business, which was the major contributor to monthly burn. Rationalized and budgeted the amount of time and money spent on government contract business development. Executed strategy to focus the company’s resources on a patentable software security product that was 90% complete.
Applied for patent and received pending status. Secured trademarks for branding of product suite, and an initial contract of $2.14M for an R&D project to integrate the software into a custom application. One year later, the company is finalizing multiple deals within the DoD for pilot programs of up to 1,000 copies of software with letters of intent to roll out to more than 500,000 for the Air Force alone.
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