Insolvency to Tremendous Profitability
Los Angeles Based Marketing Agency
After years of sales decline and increasing costs the company was left with significant liabilities, negative cash flow and diminished morale. Without options the executive team would have no option but to close its doors.
"It’s been a great comfort knowing that we have Robert supporting us in our corner while we fight to rise to the top of our industry. His calm demeanor and sage advice has helped us to roll with the punches when necessary and to strike back hard and fast whenever possible. Most importantly, he has a fantastic way of making all of his clients feel like they are his one and only priority."
The agency wanted to have processes in place that would allow it function autonomously, as a whole and departmentally. This leading along a path to a gradual reduction of owner involvement, to an eventual goal of independent operation.
Looking to take debt management to a point of sustainability, and in a timeframe of five years, complete elimination.
Sales to be developed and expanded to lead to $10m in annual sales.
A time study was conducted in order to get a broad view of efficiency and lay of the land. We implemented comprehensive reporting systems so that company data is accurate, timely and useful.
We then looked at negotiate debt to maximally improve cashflow in the short to medium term, by reaching out to vendors and banks and put Patin & Associate expertise to good use to deliver broadly favorable terms.
With these pieces beginning to come together, a deep dive analysis of sales and operational functions allowed us to build a sophisticated, detailed overview of business standing, laying the groundwork for best possible strategy decision making.
"Robert is a master of taking even the most unwieldy and muddled financials and bringing them into order. Not only is he adept at bringing budgets and cash flow in line, but also providing sound, well reasoned guidance and advice to improve future results."
To deliver the changes needed we overhauled operational processes, introduced and expanded automation wherever practical to streamline tasks, and standardized a strong, specified client experience across all operations. Finally, overhauling sales and their value proposition in order to drive revenue growth. Guiding and coaching the sales team to improve lead generation and closure rates at higher margins, meeting agency objectives.
What They Accomplished
Quick initial actions provided the breathing room for the agency to develop a reformed sales pipeline, and for comprehensive analyses of inefficiencies and profitability to be developed.
Through project costing and budgeting improvements gross profits increased by 36%. The culmination of reinvestment, refined marketing strategy resulted in a 613% increase to net profit and over $1.5M in profit per partner.