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Case Study

 

Often, I am asked, “What do you do?” or “How is your firm different from my CPA/attorney/etc. that I’m already working with?”  I can always give two easy answers:

 

  1. We actually produce bottom-line results for you.  We don’t just talk about it.
  2. We do not bill you just for spending time with you.  We work to create additional value in your company, and we share in that additional value with you.

 I offer below a real-world client scenario that illustrates how Evans & Associates engineered a positive result for one of our clients.  They had previously worked without success with CPA firms and “advisors” who had been given the same information that we received.

 

Client is a small (under $1MM revenue) dry cleaner/industrial laundry located in Southwest Michigan.  Client problems cited:

 

  • Stagnant revenue growth.
  • Decreasing net income.
  • Problematic cash flow.
  • Aggressive landlord seeking to lock in long-term lease in outdated facility.

 This client requested Evans & Associates to perform Business Assessment in an attempt to find a positive avenue for this company to follow.

 

We immediately focused on several problem areas:

 

  1. Utility expense was extremely high compared to prior years.  We met immediately with Village Manager, made three presentations to Village Council, utilized expert witnesses, and managed the entire process to prove that Client had been overcharged on electricity bills for the past year.  Successfully requested and received temporary stay of utilities shutdown from Village Council while our appeal was proved. Client received $23,500 refund after we proved our case to the Council. Client would have been put out of business without our intervention.

 

  1. Negotiated manufacturing outsourcing agreement to provide Client time to either move into new facility or function as a virtual manufacturing corporation, maintaining revenue and cash flow while eliminating obsolete manufacturing facility and lease liability.

 

  1. Built aggressive business plan with ownership showing potential to double their revenue base in 2006 with an entirely variable cost base. Client is now in position to increase 2006 net income by more than 2000% after nearly going out of business in January 2006.

 

  1. Eliminated various Non Value-Added expenses—expenses that their customer would not be willing to pay extra for incurring.

 

Net result of this engagement, utilizing our Value-based Fee system (Win-Win):

 

  • Client Return on Investment of 2600% annualized.
  • Net Income improvement of 11.82% of sales.
  • Immediate cash flow improvement equivalent to five weeks of sales.

Let us help you achieve similar results at your company! 

 

 

High-performance Profitability Enhancement and Cost Reduction Specialists

Copyright, Evans & Associates 2015