Case Studies
Carbide Tooling Job Shop - Manufacturer
The Project: A $2.75 million tooling manufacturer was struggling through the economic downturn – experiencing reduced revenue, lower profits and escalating cost. The client needed a path forward – a strategy/implementation plan that would reduce overhead, improve internal procedures while aggressively pursuing new channels of business.
Methodology: After a thorough evaluation of the company’s product/service offerings and conducting a SWOT analysis, developed a strategic business plan with a greater focus on two critical elements – 1) getting more business from the existing account base and 2) expanded opportunities with a very targeted marketing system using a combination of salesforce automation (sales campaigns) and referral marketing. Cost reduction strategies were implemented reducing overhead by 15%. The new corporate direction necessitated some personnel changes. These were minimized through training and mentoring.
Results: Within 14 months, this company brought profit margins back up to earlier standards, revenue began to rebound – sales up 12%) and the negative trends reversed. The company was able to recruit/hire a senior manager as the firm’s GM relieving the principal so he could focus on business development – and more personal time.
Distributor of Construction Products & Tools – Northeast
The Project: This $25 million distributor of construction products was under the leadership of a sharp, hard working executive and a VP – together they were responsible for strategic, business development and operational areas of the business. A multi-location distributor, the company was experiencing limited growth. The executives were operating in a reactive mode while recognizing they needed to change the systems so they could work on their business vs. "in it".
Methodology: After a series of meetings with the executives and their line managers, create a Ghant chart reflective of a step-by-step operational/systems upgrade to help executives better manage their time and focus. As part of this process, recruited admin. support to help prioritize and track progress on all action items. Developed, in conjunction with the executive team, a business development plan that included rolling out a new distribution center in the Midwest. Revised the compensation program to encourage aggressive sales behavior and focus. Established salesforce automation on all sales activities – creating a sales pipeline and cash flow proforma.
Results: Revenue growth of 20% - distribution center opened Q2 2005. Executive team began working "on" the business instead of "in" it – actually enjoying going to work everyday. Business development is helping the company grow profitably and the company is prospering.
Electrical Contractor – Northeast
The Project: An electrical contractor, after being in business for 10 years, asked SPIA Inc. to help the company grow. With only 8 electricians and one administrator in the office, the owner was involved with just about everything and anything – working "in" his business with little, if any, time available to build the company. The goal – develop a business development process that could be implemented with limited capital and people resources.
Methodology: Working one-on-one with the contractor, developed a business development system that could be operated by an administrator combining emarketing with direct mail and faxes. Targeted sales activities on high-end residential builders/developers. Put in financial controls and established a business line-of-credit with local financial institution. Established a recruiting process to attract electricians and helpers as needed.
Result: Doubled sales in 6 months, added 6 new line personnel, three vans, with the business development system adding 1–2 new builder/developer customers each week. The number of bids in for quoting per week tripled.
