Focus
on Strategy
A cutting-edge supplier to the concrete industry, Hard Rock Developments Inc. manufactures and distributes steel sidewalk support brackets along with a wide assortment of concrete accessories and decorative products.
The Challenge
Despite 3 years of substantial sales growth, Hard Rock literally found itself between a rock and a hard place:
Low profits
Negative Shareholder’s equity
Double its original line of credit
A bank that was ready to pull the plug
In short, the company had little value and was facing a severe financial crisis.
The Action Plan
BusinessWorks was engaged by Hard Rock to develop and implement the following processes:
Strategic planning sessions to clarify the future direction of the business and to develop key action steps
An objective assessment of the company’s image, strengths and weaknesses by Hard Rock’s top 10 customers
A review of pricing and profit margins of major product lines, leading to significant pricing adjustments
The development of detailed financial targets for sales, income, cash flow, along with debt and equity levels
Preparation of a financial proposal for potential new lenders
Development of a system to measure and monitor actual vs. planned results
Periodic management guidance, advisory services and support
The Results (one year later)
40% increase in sales volume
600% increase in net income
A healthy Shareholder’s equity
A favourable refinancing arrangement with a new lender
Debt to equity ratio reaching a very respectable 2.5 to 1
An owner who could sleep at night
By
the end of just one fiscal year the Company had built a solid
foundation for success and the owner is now confidently planning
further improvement and expansion strategies.