A family-owned manufacturing business wanted to expand by adding a new plant, but financial losses and the absence of a strategic plan hindered their ability to secure financing. On top of these financial struggles, the company faced significant operational challenges. CSuite provided an experienced partner specializing in manufacturing and operations to prepare the business for potential investors and long-term growth.
Challenges
The company was grappling with multiple challenges that impacted its ability to attract investors:
- Lack of strategic direction: The absence of a clear business strategy led to confusion among employees, with long-term staff resistant to change.
- Outdated software: The company relied on outdated and unsupported custom software, limiting efficiency and scalability.
- Inventory control issues: Poor inventory management led to unexplained losses and financial discrepancies.
- No performance tracking: The company had no system in place to track key performance indicators (KPIs), making it difficult to measure success or areas for improvement.
Solutions
To address these issues and prepare the business for expansion, the CSuite partner implemented several key solutions:
- Employee engagement and training: Developed a comprehensive company plan with input from employees, including training programs, clear goals, and regular performance reviews. This was communicated consistently to ensure buy-in from staff.
- Software update and support: Worked to get the company’s outdated software backed up, updated, and fully supported, enabling smoother operations.
- Inventory control procedures: Established standardized procedures for inventory management to reduce losses and improve accuracy.
- Strategic planning: Created a five-year strategic plan that included daily and weekly tracking of key metrics like project overages and labor overtime, providing the company with actionable insights.
Results
With a clear strategic direction and operational improvements, the company quickly turned towards profitability. The timely and relevant data provided by new systems allowed management to identify and address problems early. Employees became more engaged and invested in the company’s success. Ultimately, with renewed profitability and a solid strategic plan, the business secured the necessary financing to purchase a new plant and equipment, increasing manufacturing capacity and driving future profits.