Case Study: A Professional Services Firm
A professional services firm reached out to New Direction Capital during its 10th year in business. Alongside its steady growth and profitability, the company had growing pains, which were impacting their day to day operations causing business challenges, risks, and opportunities.
This client understood that in order to maintain profitable growth within their highly competitive industry, specific issues needed to be addressed quickly including: cost containment, efficient resource allocation, business roadmap planning, and handling demands of physical space.
First, New Direction Capital met with the client to understand their long-term vision for the business and personal goals and together we chose to target five specific areas: identify cost-savings, prioritize and measure resources and projects, develop 5 leading indicators to monitor the business, and develop a plan for securing their location.
- NDC cut down on the client’s time to investigate and analyze vendors; saving client over 35 hours in the process.
- NDC was able to save 10% in overhead, including rent, insurances, and payroll.
- NDC was able to restructuring business line of credit saving client 33% on cost of capital.
- NDC was able to save clients time on finance and admin matters and allowing them to spend more time on running their business and working with clients.
Prioritization of projects and resources:
NDC as Chief Financial Officer saved client time and money by working with client and his staff on prioritizing the multiple projects and worked with client on tracking tasks and activities. NDC was able to find multiple opportunities to shift lower dollar activities from higher dollar activities increasing efficiency and profitability for the business.
Develop 5 Leading Indicators to Measure the Business:
NDC worked with client to develop top leading indicator to analyze the business; measuring revenue, profitability, employee utilization, customer profitability, and growth thresholds. NDC also developed financial targets for key overhead areas for the business helping the client save time and money now and in the future.
Develop plan for New Location
NDC evaluated their existing location and worked with real estate professionals in the development of a rent market study. We were able to determine that client was paying more for location than needed. We were able to work with building owner on the client’s behalf saving 20% on the current lease and develop a plan for future building needs.[/vc_column_text][/vc_column][vc_column width=”1/4″][vc_widget_sidebar sidebar_id=”sidebar-4″][/vc_column][/vc_row]