Company B is a long established restoration company. They were in business for over 20 years. They only had several managers and no business strategy. They likely were profitable but there were no financial reports to confirm or deny.
The business was very production focused and did perform quality work. They had a reputation for completing jobs properly and in a timely basis and were dependent on several sources of work to provide new sales.
They had no financial or accountability reports. There was no file system or general office systems or organization. The marketing was nonexistent beyond maintaining a couple of key accounts. The success of this company was due to an efficient and hard working field staff.
The company was dependent on three main managers for all sales, marketing, management, estimating, administration and business functions. This business was in the middle of a generational transition. The son of the owner was working in the trenches in order to find a clear exit for the father but the exit plan was not retirement, rather it was simply to get out. The business did not have a solid professional team – banker, CPA, and attorney.
The company existed but did not have a clear operational or business plan and everyone was in charge of everything.
A key management staff was added. The son was able purchase the business from his father, which provided a solid retirement through the purchase of the company and ownership of the building. The business has a solid foundation with a large group of key managers with clear lines of authority. The business operates in a state of the art facility. The business plan was laid with the assistance of Business Mentors and the owner took the company to the next level with this foundation. The company is approaching 100 employees and is recognized nationally for their great work and company management. The business operates through solid business planning and key financial reports. They are very proactive and involve the entire management team in the planning process and in departmental decision-making. They have divisional goals and rewards that are shared by the entire staff. Managers and field staff share in the financial success of the company. They have a very solid professional team and have access to a very strong bank operating line and equipment financing. The net result is that the original owner has a fully funded retirement and real estate portfolio. The son is the new owner and spends his time working on the business rather than in the trenches. They have a general manager that is responsible for daily operations and timely reporting that allows for effective staff management at all levels. This company is widely recognized as one of the most successful companies in the industry.