A company secured a large project.

Most of the project was planned to be manufactured in China, then shipped to USA and assembled locally, then to be delivered to hundreds of locations.

The company had the option to manufacture locally at a much greater cost while shrinking its gross profit.

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A Home Improvement company “hit the jackpot”. Through different sources and government programs, they were able to increase sales significantly. Within one year, they grew from $3M operation, to $10M+, all from Home Improvement projects, averaging $50K revenue per project.

The company is a project based business. It runs about 1,500 projects per year. Each project is unique and includes multiple components, at different product and service categories.

Sales commissions are calculated based category, service sold and project profitability. Commission could change also based on customer and special arrangement with different customers. Commission is due only with payment is collected from customer.

For 15 years, company grew from 0 to $35M in revenue and 65 employees, providing high level conceptual design, structure design and project management services.

Throughout the first 10 years, profit increased constantly, trailing the growth in revenue. However, with time, though company increased revenue, the bottom line stopped going up and profit levels dropped.

When the company lost a major account, it was caught vulnerable and not prepared and for the first time in its history, produce a loss.

One of the best Chocolate Shops. Have been in business for more than 20 years. They make their own top quality chocolate, on site.

The shop is located at a wine country destination location that enjoys large influx of shoppers’ traffic during weekends and summer days.

All company’s sales are retail to end user, mostly at the store, some online.

Company was consistently on the verge of breaking even, constantly suffering from tight cash flow.

The company’s main line of business is in supplying retail fixtures to large retail chains.

Typically, a project would last 4-8 months and would include supplying, and sometimes also installations of retail fixtures to hundreds of stores. 

The process was complex and long. It started with the design of each location. This design would include the different items and fixtures the company would supply. The design had to be approved by the store manager or franchisee and then by the franchiser or the regional manager. Based on the approved design, the company had to issue a quote that again, had to be approved by the different parties.