Read the latest on the impact of COVID-19 and BST's response.

Unsatisfactory Profitability & Growth


Challenge: Unsatisfactory Profitability and Growth

Initial Status:
The major issues for this medium-sized retail business were carrying a heavy debt load, and constraint of working capital. The organization had poor performance, and was not making profits as would be expected for the more than 8-year-old company with healthy revenues. One obstacle was the competency level of the business manager. While this individual had many years of accounting experience, the skill set more closely resembled that of an accounting clerk – not an expert in financial management. The organization’s main goal was growth.

Initial Solutions:
CFO for Hire’s initial efforts were to identify the weaknesses in the existing accounting process, address the incomplete book status, and reconcile accounts for month end reports. During the implementation of new procedures and systems, the business manager resigned, knowing his skill set would not meet the objectives of the organization. The next step was to implement systems and processes for accounting functions, and initiate monthly analysis of cash flow, month end reports and financial status. Additionally, CFO for Hire began conducting quarterly shareholder meetings to review results and identify future goals.

The organization “turned the corner” and, within one year of starting work with CFO for Hire, is now making a profit. Cash flow has improved, the company is paying down its debt and strengthening their balance sheet. Additionally, the company has opened three additional retail locations, and is now the largest independent retailer of its type in the region.

Contributing Factors:
The internal management was committed to improvement, and willingly followed the recommendations of CFO for Hire. Additionally, their commitment continued beyond the initial stages; the organization perpetuated the improvements and maintained its course.