I have a particular case that stands out to discuss profitability. A former corporate executive with name recognition for marketing bought a company and wanted to turn it around. Unfortunately, his partner and intended CFO went through an unforeseen event with his spouse and could not join the team as intended. Long story short, the corporate executive felt he was in over his head with finances and managing the particulars of the business cash flow. Debt started to worsen due to the use of a factoring company and vendors began knocking on the door for payment a little louder. We took different routes for restructuring the debt but it turned out the best method to stop the cash hemorrhaging was to make organic changes to operations. We took a look at the unique cost model and immediately reduce what was being spent on disposal costs and overtime labor without affecting core operations and the client delivery schedules. This simple act gave the client confidence in the business and he involved his team to engage in an effective cost-cutting exercise. One thing led to another and the client has now even implemented the use of subcontractors to support exponential revenue increases. The revenues are increasing and this time around, so are the profits.
