Management Reporting and complete turnaround for a company in the field of services
The client, a mid-sized Bulgarian company in services sector, is managed by three owners who have been developing the business for 8 years. The owners manage the company on the basis of good operational knowledge of the sector, intuition and entrepreneurial spirit.
Knowing that they could achieve much better financial performance, SENSE contacted xFigureFinance to structure adequate management reporting, to plan and to take a financially sound decisions.
This project is complex and multi-component so we developed our full service range at this field, so here is what we did and what we achieved:
Month 1-5:
After initial analysis and knowing the business, we structured a system for collecting and reporting information based on the needs of the management. Until this moment the business had been served by an external accounting company focused only on tax and accounting reports. First we started with the most important thing: revenues and clients.
We split the present clients into several main groups based on their customer behavior and generated profit margins. Thus, the managers already knew which clients generate volume and which – a value. As a result of this initial analysis we built up a strategy for increase of the number of the purchases based on a client group and allocated responsible members of the team for each group of clients.
As a result of long lasting meetings and releasing discussions we reviewed and split the operating expenses by cost centers based on business logic. We formed a budget for every cost center and built a system for monitoring the expenses based on efficiency and contributing to the company’s goals.
“We have always worked with our senses and for the first time we see the whole view so clearly.”
Month 1-5:
After initial analysis and knowing the business, we structured a system for collecting and reporting information based on the needs of the management. Until this moment the business had been served by an external accounting company focused only on tax and accounting reports. First we started with the most important thing: revenues and clients.
We split the present clients into several main groups based on their customer behavior and generated profit margins. Thus, the managers already knew which clients generate volume and which – a value. As a result of this initial analysis we built up a strategy for increase of the number of the purchases based on a client group and allocated responsible members of the team for each group of clients.
As a result of long lasting meetings and releasing discussions we reviewed and split the operating expenses by cost centers based on business logic. We formed a budget for every cost center and built a system for monitoring the expenses based on efficiency and contributing to the company’s goals.
“We have always worked with our senses and for the first time we see the whole view so clearly.”
Month 6:
The covid pandemic came almost at the final and several of the key partners of the company demanded a renegotiation of the present conditions, as a result of which MOOD lost a significant guaranteed income. And although the project was near to stage to be complete, we had to go back from the very beginning and reform the strategy.
“The only place where the Success comes before Work is the dictionary.”
Vidal Sassoon, entrepreneur
So we rolled up our sleeves and based on the analyzes and reports, together with the management we built a strategy how to reposition the Company between the different groups of clients, as well as a plan where the management should focus on the expenditure part.
Thanks to the quick reaction of the owners, the favorable change of the market in the specific location and the clear and accurate financial plan, the Company managed to fill the missing income from the key partners with an increase in the other client groups and even to achieve a small revenue and profit growth for 2020.
Month 6:
The covid pandemic came almost at the final and several of the key partners of the company demanded a renegotiation of the present conditions, as a result of which MOOD lost a significant guaranteed income. And although the project was near to stage to be complete, we had to go back from the very beginning and reform the strategy.
“The only place where the Success comes before Work is the dictionary.”
Vidal Sassoon, entrepreneur
So we rolled up our sleeves and based on the analyzes and reports, together with the management we built a strategy how to reposition the Company between the different groups of clients, as well as a plan where the management should focus on the expenditure part.
Thanks to the quick reaction of the owners, the favorable change of the market in the specific location and the clear and accurate financial plan, the Company managed to fill the missing income from the key partners with an increase in the other client groups and even to achieve a small revenue and profit growth for 2020.
In this project we have clearly shown how a well -functioning function can stimulate business both operationally and strategically.
It is a great pleasure for the xFigureFinance team to enjoy the trust of the owners and to participate in interesting and dynamic development of their business.
In this project, we have clearly shown how a well-functioning financial function can stimulate business both operationally and strategically.
The work of xFigureFinance gave a complete and clear financial view, an independent perspective and helped to the Company to define, measure and achieve its goals.
Now that the current business is transparent and well-structured, the owners can focus on growth and new strategic projects. We are already working together on a financial plan for a new key object of the Company, see more here.
It is a great pleasure for the xFigureFinance team to enjoy the trust of the owners and to participate in interesting and dynamic development of their business.
In this project, we have clearly shown how a well-functioning financial function can stimulate business both operationally and strategically.
The work of xFigureFinance gave a complete and clear financial view, an independent perspective and helped to the Company to define, measure and achieve its goals.
Now that the current business is transparent and well-structured, the owners can focus on growth and new strategic projects. We are already working together on a financial plan for a new key object of the Company, see more here.
Our shared successes
“We are extremely happy to have another member join APSTE – Association for Production, Storage and Trading of Electricity – xFigureFinance!
We believe that with your expertise and experience we will be able to work towards best practices in financial structuring and modelling of renewable energy investments.”
Mariyana Yaneva
APSTE
“xFigure helped me to make a decision whether to develop a large photovoltaic project and how to approach it. Even at the Idea stage, I was able to answer key questions related to the productivity and return of the project on the local market. The team’s knowledge of financing opportunities and conditions and the preparation of information for banks and investors was extremely useful.”
Bozhidar Draganov
BODD Solar
“We turned to xFigureFinance to develop a model for analysis of the cashflows and profits of our business. This allowed us to identify and expand the most profitable activities very clearly, as well as to optimize expenses that do not bring the desired result. This project has become a long-term partnership and we have been working with the team for two years now. xFigureFinance are able to listen, analyze and ask the right questions and are invaluable partner in our business and in validation of our new investments.”
Boris Sekulski
Endeavour Constructions
“xFigure performed a complete analysis of the company and the industry in which our business is conducted, arriving at a valuation that was key to a subsequent completed transaction with DHH for the purchase of a 60% interest in the company. The outstanding commitment and results presented were highly appreciated by DHH, as a result of which Ms. Chopeva was invited to join the Board of Directors for a long-term partnership.”
Svetoslav Hristov
Evolink SA
“Working with xFigure helped us make a strategically important investment decision. The analysis of the team showed us clearly what the key risks are and how to structure the deal. Our partnership with xFigure is valuable for us because they build on our expectations and give us confidence with a multispectral view of each project.”
Todor Dimitrov
Sofiiska banica
“In the xFigure team we met true partners who stood firmly behind us and together we went through the long process of attracting an investor to support the growth of euShipments.com. The team worked hard, dedicated and we were able to make important strategic decisions as well as raise EUR 7.5 million from investment funds in the country.”
CEO, euShipments.com
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