Study #2

PRIVATE BRANDING FIRM GROWING RAPIDLY

History

The client started off as a one-person marketing firm.  The business quickly grew, and in the last few years the CEO and founder found himself now running a firm with several employees, multiple clients, and an ever growing business labels itself a branding agency – helping clients in various areas from web site development, creating a marketing strategy, establishing a social media presence and collateral development.

Challenge

The founder was a creative genius who has built a firm quickly based on his talent and ability to bring identify clients needs and grow their businesses. The problem lies in that as a business grows, so do the business needs such as financing growth, understanding financial reports and metrics, managing cash flow, and making informed financial decisions. This side of the business was not a strong point of the founder, and in order to successfully manage the growth he needed to address it.

 

The immediate needs of the client were:

* Implement tools to track key financial metrics monthly

* Decrease the average number of days receivables are outstanding

* Increase the average number of days payables are due

* Budget and manage cash flow for growth

* Analyze business options for what makes in the long term

* Bring efficiency to the billing & accounting cycles

 

Solution

* Create a financial forecast for the next 3 years to act as a benchmark for growth and success

* Implement financial metrics, vital factors, and hourly billing reports to identify growth, problem areas, and areas of success

* Increase accounts receivable functions to reduce the outstanding accounts receivable

* Implement policies for payables to be paid when due, not immediately when received

* Monthly financial reports are generated instead of quarterly

* Weekly meetings to discuss the current cash position, financial performance, and general growth strategy

* Use of additional tools for invoicing & billing to increase awareness of what is outstanding and also generate timely invoices

 

Results

* The client has grown substantially in the past year now that the company is run like a business, more than doubling revenues year over year

* A new complimentary company offering branding services was spun off

* Employees are able to focus on their specific tasks and client acquisition

* The company is now run like a business and not a hobby