Challenge: We began working with an entrepreneur who had built his company over the last 14 years. His revenues were stuck at 7 million for 3 years and this year they went down 20%. Profits were calcified at a very low margin. The owner kept the management team at a part- time level. Wanting to save money he chose managers who were not seasoned or strategic. This prevented him from delegating to them because he worried they could not handle any responsibility. He did more tactical and administrative tasks himself believing he was saving the company money. What he was preventing was strategic growth by looking for more opportunities, leveraging or changing his management team and holding them accountable as well as empowering them to make decisions.
Solution: When he called he was spending 80% of his day at the desk responding to crisis calls and email. And yes, truly, he was changing light bulbs and ordering coffee for the lunchroom.
Results: We worked with him over 18 months . During that time he was able to create a sales team; hire an interim CFO; develop an advisory board; develop a business development strategy that included him speaking at key industry meetings and gaining the attraction of a new market segment as well as a strategic buyer. We developed a process improvement system that reassigned roles and responsibilities and increased efficiency. Profit margins went from 3 to 7% the second year. Revenues increased 15%.