Case Studies

DON'T JUST BELIEVE WHAT WE TELL YOU.

See some real life case studies below and the results these businesses had from using Herrmann Advantage Consulting.

CASE STUDIES

CASE STUDIES

 

INDUSTRY: RETAIL


BUSINESS TYPE: Multi Store Retail


SITUATION: This is a family business. They began their engagement with our firm due to declining business and having been placed on their lenders "watch list". The owner had made several poor decisions regarding product placement and inventory purchase. The owner had also made sever other business decisions that had essentially turned his business into a new "start-up" that generated concern on the part of the lender. This company was engaged with Herrmann Advantage Consulting for a total of 13 months.


CATEGORY STARTING POSITION END RESULTS
Employees 15 (not including owner) 15
Managers 2 2
Revenue $875,000 $1,230,000
Margin % 29% 60%
Gross Profit $253,750 $738,000
Cash On Hand $15,000 $73,000
Net Profit $6,500 $59,000



BUSINESS TYPE: Specialty Retailer


SITUATION: This is a midsize small family business. The business was losing money monthly and was not growing. The owner did not know why and did not know what it cost to provide their product to the consumer. A refinement of their processes, eliminating excessive waste and the development of a new sales compensation plan was completed. The new plan focused on growth in new business while retaining existing business.


CATEGORY STARTING POSITION END RESULTS
Employees 11 (including owners) 11 (including owners)
Managers 1 1
Revenue $1,200,000 $1,400,000
Margin % 26% 54%
Gross Profit $312,000 $756,000
Cash On Hand $9,000 $27,000
Net Profit -$10,000 $338,580

INDUSTRY: MANUFACTURING


BUSINESS TYPE: Engraving and Fabrication


SITUATION: This Northeast Wisconsin engraving and fabrication company is a family business. They began their engagement with Herrmann Advantage Consulting due to nearly non-existent new business development and production inefficiencies. The business was eroding at approximately 24% per year and had significant production problems due to antiquated equipment. The owner was nearing retirement age and, not only was there no transition plan in place, but the lack of business growth was jeopardizing the future of the business for the two adult children who were going to succeed the current owner.


CATEGORY STARTING POSITION END RESULTS
Employees 5 (not including owners) 5
Managers 2 2
Revenue $492,000 $925,000
Margin % 71% 82%
Gross Profit $349,320 $758,500
Cash On Hand $41,000 $68,000
Net Profit $36,911 $84,000



BUSINESS TYPE: Metal Fabrication


SITUATION: This was a 25-year old business that had grown without plan or direction. The founding owner is nearing retirement and wanted to improve his business in order to retire in the next 3-5 years. Over a 3-year period we achieved the results shown. The owner is now working with a broker while continuing our services on a periodic basis to ensure the gains made remain.


CATEGORY STARTING POSITION END RESULTS
Employees 26 (not including owner) 28
Managers 3 3
Revenue $4,800,000 $6,720,000
Margin % 32% 49%
Gross Profit $1,536,000 $3,292,800
Net Profit $384,000 $988,000



BUSINESS TYPE: Metal Fabrication


SITUATION: This company was less than three (3) years old and is a family business. They began their engagement with Herrmann Advantage Consulting when numerous account receivables were delinquent or overdue. The owners were fearful of bankruptcy. The company desperately needed immediate help from a professional management company with small business expertise. We continued to work with this company with the significant results outlined below.


CATEGORY STARTING POSITION END RESULTS
Employees 5 (not including owners) 11
Managers 1 2
Revenue $585,710 $1,320,000
Margin % 46% 49%
Gross Profit $269,426 $646,800
Cash On Hand $6,500 $71,500
Net Profit -$9,275 $51,800



BUSINESS TYPE: Machining


SITUATION: This is a family business. They began their engagement with Herrmann Advantage Consulting shortly after they lost 40% of their revenue when losing a client. The owners were nearing retirement age and there was no transition plan in place.


CATEGORY STARTING POSITION END RESULTS
Employees 7 (not including owners) 13 (not including 2 owners)
Managers 1 32
Revenue $820,000 $1,400,000
Margin % 32% 44%
Gross Profit $262,400 $616,000
Cash On Hand $4,800 $52,300
Net Profit -$14,225 $63,000

INDUSTRY: SERVICE


BUSINESS TYPE: Service


SITUATION: This is a start-up family business. The business was losing money monthly and could not sell more to become profitable. In fact, each sale cost them money. The "cash" in the business was the original equity from an online bank loan.


CATEGORY STARTING POSITION END RESULTS
Employees 6 (including owners) 4 (including owners)
Managers 1 1
Revenue $175,000 $265,000
Margin % 13% 38%
Gross Profit $22,750 $100,700
Cash On Hand $22,800 $52,300
Net Profit -$32,000 $33,231

INDUSTRY: Construction


BUSINESS TYPE: Distribution


SITUATION: This company was a long-term, established family business. The company wanted to grow and was experiencing some internal issues that prevented that from happening. Additional issues of labor, inventory, and production processes were causing the business concerns. We worked with this business for two years before we ended the relationship.


CATEGORY STARTING POSITION END RESULTS
Employees 18 (not including owner) 38
Managers 3 5
Revenue $3,400,000 $6,670,000
Margin % 36% 60%
Gross Profit $1,230,000 $3,990,000
Net Profit $369,000 $1,225,000

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