Let me tell you about a client of ours.

They were a fast-growing $2M solar company, with skyrocketing sales. A good thing, right?

It seemed that way on the surface. Then the owners realized their company had a major issue. They couldn’t make payroll.

As you can imagine, it was a very stressful and frustrating situation for them. With record sales and a rapidly growing customer base, how could there not be enough money in their checking account to cover payroll? Things just weren’t adding up.

So they reached out to TurboExecs for help.

We dug into their books (which were a hot mess, by the way) and discovered three business practices that were the culprits behind the “lost” cash.

  1. Customers: their down payments weren’t sufficient to cover front-end costs
  2. Commissions: salespeople received commissions before the company was paid by customers
  3. Inventory: they had a lot of it, and they were paying for it way too soon

In short, they had a serious cash flow mismatch. More was going out than was coming in.

We helped them make changes to their customer and vendor terms, cleaned up their books, and within the first 30 days we were able to increase their cash balance by $1M.

Yes, you read that correctly.

With new terms and business practices in place, they quickly grew from $2M, to $12M, to $25M.

Their rapid growth caught the eye of a private equity firm, allowing the owners of the solar company to profitably exit the business and move on to a new venture.

If you’re a fast-growth company struggling with your cash flow or profitability, reach out today. My team is ready to help put you on the path to sustainable, profitable growth.

 

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