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Client Examples
Franchise Consulting
Strategic Partners
Convenience Store
Business Sale
Sales and Marketing Consulting
Automotive Specialty Manufacturer
Construction
Contract Manufacturer
Distributor
Internet
Software
Automotive Product
 Franchise Consulting
Two of our clients had excellent businesses with growing sales; however, they appeared to be unprofitable. Each of the clients wanted to open new stores but was unable to secure financing because their financial statements indicated that they were losing money.
After our thorough review of the actual entries and accounting practices, Strategic Business Group determined that the stores were in fact profitable. It was determined that the owners did not understand some basic accounting practices and they were making entries that overstated the cost of goods thus creating an operating loss. The same entries understated the assets. These actions caused their lender and prospective lenders great concern.
After we corrected the accounting errors we were able to secure for our clients, the franchisees, financing for their second stores. Both clients received SBA guaranteed 7-year loans for approximately $150,000.
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Strategic Partners
Our client, a highly successful regional distributor of solutions for factory and warehouse automation, had identified 2 engineering firms they were interested in developing a strategic relationship with to provide a complete solution for their customers — something desired by several of the distributors customers.
We were retained to investigate the 2 companies. We interviewed management, assembly operations, inventory, configuration plans, testing and pricing strategies. We provided our client with details, insights, strengths, and weaknesses of the 2 firms that our client was unlikely to get on their own. Unlike our client we did not have a relationship with the 2 firms which allowed us to ask the tough questions. One of the firms brought strengths to our client that they were not aware of— another a potential weakness. With a clear picture of the strengths and weaknesses of the 2 firms our client was able to negotiate a practical mutually profitable relationship that has the elements for success.
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Convenience Store
Strategic Business Group was engaged to assist our client in determining the market value of their combination convenience store/fuel island/car wash as well as to secure long term financing. Our client had a solid work history as a small business owner but this was a large step-up and cash resources were limited. Using a combination of long-term below market seller financing and the SBA 504 loan program, our client was able to acquire the convenience center and was profitable from the first day of ownership. The total loan package for our client was $2,500,000.
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Business Sale
We have helped owners wanting to sell their businesses to first determine the market value of the business, and then develop a sales strategy, and followed through by executing the sales plan that quickly sold the business. In some cases they sold for an amount higher than originally estimated. In a recent transaction our client states that SBG helped him sell his retail business for $40,000 more than he anticipated.
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Sales and Marketing Consulting
We designed a low cost, custom marketing plan for a franchisee that had opened a new store and needed to quickly jump start sales. Our plan targeted business owners by developing a unique mailing list, custom designed flyers, in-store training, sales training, and a sales follow-up plan with easy to follow and executable steps. Sales exceeded our initial estimates by a factor of 2!
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Automotive Specialty Manufacturer
Our client had significant order backlogs and strong future prospects but due to a series of missteps the young owner/manager lacked cash to continue operations. The immediate goal was to stop their asset based lender from foreclosing and to convince the lender to advance additional funds to complete a major project. The secondary crisis was to negotiate with the landlord who was attempting to halt all operations for a delinquency it was partly responsible for.
We were able to convince the landlord to extend the terms and convinced the lender to increase their loan. This allowed production to continue and allowed our client to pay the asset based lender and the landlord, as well as to save about eighteen jobs.
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Construction
Strategic Business Group was initially engaged to assist management in creating meaningful financial statements and projections but the project quickly evolved into a classic reorganization. The companies were burdened by excessive debt, poor cost controls, nominal project controls, and had in excess of $900,000 in unpaid payroll taxes and penalties (a personal obligation of management).
The solution required a multi-faceted approach where SBG quickly created realistic financial statements along with near term sales and expense projections. Next we located potential acquirers and begin preliminary negotiations to determine their value of the company while developing a realistic evaluation of the market value of the assets. Simultaneously we conducted negotiations with lenders and taxing authorities to consider debt reduction options and repayment strategies.
Ultimately the companies were sold and our client received approximately $2,500,000. The lenders reduced their debts to facilitate the sale, and the taxing authorities accepted less than full reimbursement from the acquirer.
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Contract Manufacturer
Strategic Business Group was engaged to develop a business plan that would allow the new owners of a printed circuit board assembly company to capitalize on a niche market. In addition, we arranged for venture capital investments to provide working capital and equipment financing.
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Distributor
SBG assisted and guided owners in developing a new vision for their 40-year-old company with over 200 employees throughout five states. We successfully facilitated the creation of new strategic business plan to address the strengths, weaknesses, opportunities, and threats they faced in a rapidly evolving marketplace.
Additionally we provided guidance with personnel issues, sales strategies, and financial performance during this paradigm shift. Ultimately we helped recruit
a new President for them.
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Internet
Working with the creative founders of a fast growing web site design company, we developed a business marketing strategy that allowed them to improve profits and increase sales. We were also able to negotiate a new term loan and revolving line of credit with a new lender which provided them with the capital they required. We continue to provide them with client services relating to new business opportunities.
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Software
We assisted the founders in developing a focused business plan to capitalize on their cutting-edge patented optical recognition and decision making software applications. The initial applications of this unique software were releases targeting the fast growing government asset inventory needs.
Funding for products targeting a government sector is especially difficult because the decision cycle is often long and may not be based on traditional economic parameters. We were able to attract a strategic investor who not only provided equity capital for expansion, but also provided the client with significant profitable sales without the associated sales and marketing costs.
We continue to provide guidance to the founders of this rapidly growing and very profitable company. They have now expanded into new markets and have since created several new patented and patent pending software solutions.
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Automotive Product
The founder of a start-up company developed a single use tool targeting the automotive repair and service market engaged SBG’s services to market his invention. After a long period (of our own due diligence) regarding the product opportunity we entered into a company management agreement.
Other than patents, some product, and limited promotional literature, the company was a virtual shell. We quickly developed a business plan to raise venture funds from accredited investors, researched and entered into new supplier contracts to manufacture the product and provide fulfillment facilities (kitting, inventory and shipment), thus creating a virtual company. Approximately $600,000 in new equity money flowed into the company allowing it to launch the business.
SBG created new retail and wholesale training aids, promotional and sales literature, as well as packaging and pricing in order to meet retailer and customer needs. The product was introduced to automotive manufacturers as a low cost method to significantly reduce warranty costs and improve customer satisfaction.
Through testing we discovered innovative new dimensions to create additional new product designs that resulted in the client filing for 3-new patents.
Our final responsibility for this company was to update the business plan and create a Private Placement Offering Memorandum to raise a second round of equity funding to propel the business to its next level.
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