“The Owner’s Rep offers seamless service from daily bookkeeping to senior level financial management.”

T. Rebarber

AccountabilityWorks

Case Studies

COMPANY 1

Situation: The Company was under extreme financial distress after two years of significant losses that had depleted all cash reserves. Revenue per customer was down 30%. Excess inventories were building up. No financial or operating controls were in place. The Company was also under duress due to multiple pending lawsuits.

Company Segment: Entertainment and Travel Services

Goals: Reverse financial trends, shore up inventories, create business metrics, improve marketing/sales performance and reduce expenses.

Corrective Action: Within 30 days, The OR team produced an operating plan to stave off complete financial collapse and reverse negative P&L trends. Execution included a complete Company overhaul that included the following:

• Restructured the organization
• Implemented new financial models and business metrics for every business area
• Renegotiated existing contracts
• Created a new marketing and sales plan
• Reduced operating expenses and implemented budgets
• Created an executive dashboard featuring all key company metrics
• Improved overall product portfolio
• Put in place new banking, legal and other operating relationships and negotiated for better terms
• Introduced low cost, low risk services
• Reworked the web site including an improved customer experience

Results: Dramatic improvement in operations allowed the Company to control its direction rather than react to situations. Inventories were reduced 30%, expenses were reduced 45%, and processes were put in place to track cash performance on a daily basis.

COMPANY 2

Situation: After many years of successful operations, the Company had seen year over year profit losses. No cash reserves were in place. Substantial margin erosion on the core product line threatened the Company’s existence.

Company Segment: Branded Apparel

Goals: Create an operating plan that would include rigorous cash flow models to eliminate the Company’s dependency on owners’ personal cash loans.

Corrective Action: The OR team created an extensive cash flow model and budget that included the entire supply chain. We introduced margin and COGs analysis early in design process to avoid additional margin dilution. We directed the shift toward a direct to consumer model away from the distributor to retailer model to overcome collapse in retail sector and associated low margins.

Results: Five point margin improvement for the new line; launch of new eCommerce site; and first ever company and department budgets, cash flow and executive dashboard for owner to leverage day to day. By close of the project, the Company was on target for break even the same fiscal year.