Case Study: Environmental Field Service Company
The company specialized in drilling services for environmental remediation projects. The founder had invented a superior, more efficient drill rig. The firm was also a leader in the development of various tools to improve the quality of data retrieved. While a technical whiz, the founder was less skilled in marketing and business development.
We conducted a survey of the satisfaction and loyalty of company’s existing clients. We discovered that the company had a great reputation but was not widely known. A marketing strategy was developed to introduce the company’s suite of solutions to a wider audience.
A new president was brought in. The founder was freed to continue to develop new tools. He also realized that he, having built the equipment, was the best business development person. The sales force facilitated his presentations for clients and regulators.
Within two years, the company’s revenue was up 62% with an increase in market share of 11%. The company became more widely known as a technology leader.
Case Study: Environmental Remediation Company
The company was winning projects on the West Coast, but the operational burden was tremendous. An outgrown accounting system was causing a myriad of problems.
The initial engagement revealed that the company held a license for a very effective technology, had terrific market share in the Northeast, and was growing their national footprint from their New Jersey base.
After deliberations with the ownership group, a strategy was developed to open a California office to address the opportunities there. A large win on a military project capitalized the move. A minority partner with strong technical and project management skills agreed to relocate to manage the new office and build a team. Equipment was relocated to cut the cost of mobilization, and making the company more competitive. A professional salesperson was hired to introduce the company to the new region.
As the company grew over the years, the founder became bogged down in day-to-day minutia. He possessed excellent business development skills, but operational issues were impairing his ability to get out of the office. An operations manager was brought in and given responsibility for supporting both offices. Crews began to be better equipped in the field resulting in less down-time. The ops lead had control of the schedule, personnel, procurement, and rolling stock. Things began to run more smoothly.
The capital outlay was significant which exacerbated the accounting issues. The company was routinely doing several projects at once but there were no cost controls in place. The project managers had no way to accurately capture individual job costs, so there was no way to gauge profitability. A part-time CFO was hired and tasked with building an advanced accounting system.
The strategy worked well— the company began to win larger projects in new markets. The company became more profitable, with firm control of finances. And they were more competitive due to lower procurement, travel, and mobilization costs.
The strategy worked so well that we later prepared the company for their subsequent acquisition in 2016.
Case Study: Chemical Distributor Start-Up
We were engaged by an investment group which had identified an opportunity and wanted to confirm their concept. The opportunity was based on lower acquisition cost for the specific materials by sourcing offshore which allowed for more competitive pricing.
After consultation with the ownership group, a strategy was developed which would allow the company to pursue their goal. We discovered that the intended market sector was highly technical so chemical composition and purity was a priority concern. Armed with specifications, the company’s technical adviser visited the offshore suppliers to confirm that their specs could be met.
We then set up several lab assays to confirm the specs as well as the effectiveness of the material. This provided documentation that the products would meet market sector requirements. We did targeted product introductions at trade shows, industry group gatherings, and regulators’ meetings.
The initial foray was successful, with the products being well-received by the marketplace. Chemicals are commodities so sales come down to price and availability. The price issue was covered, profits from initial sales were reinvested in warehouse space so the availability issue was covered.
The company has gone on to open three new offices with associated local warehouse space at each. They have gained a 21% market share in a competitive sector and are presently planning to open 2 more offices in the next 18 months.