Disposition Preparedness & Profit Improvement Project (Global Manufacturer of Equipment & Systems)
We were initially contracted to review the financials and improve the profits for the Dowers Grove, Illinois client’s Canadian operations, for the purpose of selling the operations. This involved significant restatement of the balance sheet and properly recognizing revenues, COS, and expenses on the P & L prior to focusing on staffing and profitability. Upon creating relevant and consistent financials, reviewed all areas of profit improvement potential, which determined the majority of effort must be focused on sales growth.
We worked closely with the Director of Sales and marketing to focus on new “profitable” business, renegotiate contracts of existing unprofitable business, focusing on the sales of profitable products and educating sales management and staff on the information required for the finance team to determine each potential customers profitability and AR risk.
We then developed master budgets that focused on achieving the operation’s stated growth objectives, individual detailed budgets by departments that if followed would achieve the overall budget, and finally performance bonuses based on not only each department’s objectives but overall growth and profitability.
Within the first budgetary year, the actual to budget variances were under 1.5% on revenue, and 0.25% on NIBT.
- Know your mission
- Sell to consumer needs
- Promotions and Inside Scoops
- Listen, Ask and Act