When we arrived at the company, it was tremendously indebted, the sales were not so bad; but the profit margins were very low and the fixed costs were out of control. What generated the most stress was managing the cash flow. Every week there was a choice between paying suppliers and paying banks. The fortnight that was payroll could not be paid to banks or suppliers. The process to reverse the problem took almost twelve months. We started by making a deep diagnosis, then came the decision making stage. We had to make firm decisions, take very cautious steps and work very hard.
An experienced consultant can do great things for your company.
An experienced consultant like Bradley Fauteux have enormous advantages and strengths, that’s why they are hired by companies of all sizes. The largest companies in the world always have a staff of external consultants who support them. The greatest advantage of the consultant is being able to see from the outside what happens in the company, that possibility of having an objective vision, plus the experience accumulated in other companies, allows you to see things that the people inside do not see.
About this option of hiring external consultants like Brad Fauteux, I pose these questions:
- Why do large multinational companies hire consultants, sometimes paying quite high fees, when they already have experts on their lists, some even perhaps more qualify than the same consultant hired?
- Why do we have to hire consultants?
- Why pay more than what employees are paid?
- Why do some companies hire these same consultants over and over again?
- Why do big companies hold in such high esteem the services they receive from their consultants?
I will mention now some of the reasons that answer the previous questions and that make a businessman decide to hire a consultant David Christianson in their business.
The first four reasons have been my star services as a consultant, in all this time; I will also mention other no less important ones:
- The need to diagnose problems and find solutions
- One of the main skills of a good consultant is his ability to diagnose problems and propose practical solutions.
- Companies face all kinds of situations, problems or crises that place them at a disadvantage compared to the competition, affect financial capacity and lower profit margins.
The need for a Complete Restructuring:
Many companies come to extreme situations, which require extreme solutions. It can be a serious financial crisis, serious problems of working capital, and very high levels of indebtedness, high capital costs or low profit margins.
It could also be the need to take the company to the next level of growth to face the competition or take advantage of opportunities in the market.
One of my clients had to invest almost $ 4 million dollars to double their production capacity. He had to do it for two reasons:
- The market was expanding and the product of this company was in a growing demand.
- The level of debt of the company required a higher level of sales to cover its rising fixed costs, mainly the payment of the debt. The financial balance point had increased by almost 60%.
- A complete restructuring usually includes a deep financial reengineering process, it is not just a management and operational issue.
As a specialist in financial reengineering I have participated in these processes many times. I have seen literally rise from the ashes of many companies that were about to go bankrupt.