Soundpoint Consulting Newsletter
News and Views
March, 2014:  Volume 15
  
Welcome to the Soundpoint Consulting Newsletter, News and Views.  

 

We use this newsletter to share our perspective on topics and share illustrative case studies that we think might be of interest to business owners and leaders. If you would like our viewpoint on a topic, please shoot us an email. 

This month I would like to share a client engagement I particularly liked working on due to its high impact and ability to affect change across the organization.
 
Enjoy!
 
Client Snapshot:
Retail: Financial and Operational Turnaround

Situation and Challenge

A multi-generation family-owned discount retailer was experiencing significant sales decline over the preceding four years. Cash reserves were declining and the family suspected that additional capital would be required. The retailer operated 40 stores in 3 states, employing nearly 1,500 staff.

 

Solution

Cash:

 We developed a comprehensive cash flow projection to determine the magnitude and timing of a potential capital infusion. Steps were put in place to mitigate the potential impact of a cash shortfall, including aggressive management of receivables and payables, strict financial controls, reduced salaries for family members and sell-off of non-operating assets. 

 

Corporate Functions:

We benchmarked company performance against the industry as well as other discount and regional retailers. 

 

We identified and implemented improvements in the supply chain, distribution and staffing levels. We also implemented an improved inventory management and tracking system, liquidated excess and obsolete inventory, consolidated freight shipments and better coordinated inter-store deliveries.

 

Stores:  We ranked each outlet based on profitability and identified specific areas of improvement, including merchandising, rent and staffing. We prioritized efforts and developed an action plan for each store. We assisted management in articulating a formula for successful store operations and helped implement targeted strategies in the lesser-performing stores. Three of the lowest performing stores - which had no viable path to profitability - were closed.

 

Management:  We worked with management to assess talent, establish a leadership team and develop a palatable generational transition plan.

 

Results

As a result of our work, sales growth stabilized and turned positive (from -6%/year to +2%/year). Inventory levels were reduced by $2 million, inventory turns improved by over 40%, and average distribution center throughput decreased from 3 weeks to 48 hours. We successfully renegotiated loan covenants with the bank and averted a bankruptcy filing.

 

Just as we helped this client find its Path to Profitability, we can do the same for you.  If you would like to learn more, please give us a call. 

 

Until next month, Point Your Business Where it Needs to Go! 

 

 

Best Wishes,

 

 
Kelly
2014, Soundpoint Consulting, LLC

Sound Consulting. Solid Results.

In this Issue

Client Snapshot

Retail:  Financial and Operational Turnaround

Soundpoint News

Kelly Deis was the guest speaker at a Seattle Central Community College class on Entrepreneurship.  It was an honor and a pleasure to speak to the next generation of business owners!

 

We recently changed our name from Turning Point Financial to Soundpoint Consulting to better reflect our focus on strategy, operations and finance.

 

About Soundpoint
Soundpoint Consulting is a business consulting and valuation firm serving small and mid-market companies in the Seattle and Puget Sound region. We focus on helping high growth and transitioning companies grow profitably by performing deep financial analysis, translating insights into impactful operating initiatives, and backing those recommendations with execution support. 

We provide business valuations for purposes of developing an exit strategy, taxes, divorce proceedings or a potential acquisition. 
 
Kelly Deis, Turning Point Financial

Kelly Deis,

President

Strategy and Operations: from realistic growth strategies to efficiency improvement
 
Finance:  from financial modeling to infrastructure build-out
 
Turnarounds and Transactions: from business valuation to turnarounds and M&A support
 
Check out our website: soundpointbusinessconsulting.com
 
Newsletter Archives

February, 2014:

Business Valuation Scorecard:  7 Key Components 

 

January, 2014:

Client Snapshot: Medical Practice Cash Flow Forensics

 

December, 2013:

Your 2014 Budget:  A Roadmap for the Year

 

November, 2013:

Client Snapshot:  Finance Group Assessment and Improvement

 

October, 2013:

Dashboards: Your Blueprint for success

  

and more ...

 

 

 

  

Contact Us

Soundpoint Consulting, LLC
206.842.4922 

Kelly Deis, President

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