One of our clients had severe cash flow problems: He was a trained Chef and the business did OK until one of his employees opened a restaurant across the street with an identical menu. The attraction of the new business was clear for some patrons. It was new, his was old and in need of major repairs. Several things happened in the past, which made him assume he would be without competition forever and failed to invest in his business during the good times. Even though the quality of the service was better than the competition's, he still lost significant sales.

KR Consulting performed an in-depth analysis, which revealed several failures in the past. For example, no records were kept to analyze the business performance frequently. The owner had no clear idea of his real costs and had the impression that he was doing well. It took him by surprise that there was no financial cushion for his dropped sales. His financial resources were depleted.

KR Consulting pointed out that the management structure was not existent as everyone did what had to be done at the moment. Also, accounting was done by an outsider and was delayed by several years.

The owner explained this by saying that he had no time. The business itself took his time and hiring good staff was too expensive

Getting him back on track was difficult. The equipment was obsolete, furnaces and insulation were neglected so his utility bill alone absorbed more than his mortgage and some of his wages Modernization in energy efficient equipment would have paid for itself.

KR Consulting proposed some immediate changes and sales and profits increased by 10% within a year.

We helped the client to write a proper business plan with goals and objectives. Also, good cost control and monitoring systems were put in place to help him find profit increases without lowering the service quality or increasing sales.