For over 21 years, I’ve been navigating the waters off the west coast of Florida in my trusty 23-foot sailboat. Now, don’t get me wrong—it’s a cozy little vessel. Sleeping onboard feels like camping, minus the dirt!
Picture this: a Coleman stove brewing steaming morning coffee, a sun shower bag hanging from the mast for a refreshing rinse after a day of saltwater, and a Yeti cooler serving as our fridge.
But when the weather turns nasty and the winds howl at 30 knots, it’s “all hands on deck.” We check the lines, reef the main sail, secure the hatches, ensure the bilge is running smoothly, and maintain close communication with the crew.
As a Senior Business Consultant, I often find myself helping clients weather their own storms. Even after the chaos of COVID-19, the economic landscape remains turbulent. Here’s a story that illustrates how an experienced consultant can partner with a business owner and their team to accelerate growth and profits.
A Case Study in Resilience
Shortly after the pandemic, I was referred to a struggling business owner in the flooring industry. Walking through his stunning showroom, I was struck by the high-quality products: Art Deco wall panels from Italy, a dazzling array of tiles, and traditional carpeting. “Mike,” I remarked, “look at this beautiful business you’ve built, and you just turned 36!”
He shook his head, frustration evident. “No… I’m pretty ticked off. I made $130K a year laying carpet, tile, and wood from the back of my truck. Now I have this building, inventory, three salespeople, two warehouse guys, a delivery truck, and a financial controller. We grossed over $2 million last year, but the net profit was only 4%. All that work for a $50,000 pay cut!”
Over the next few weeks, we meticulously examined every facet of his business:
Sales: We analyzed his client base, ideal profit margins, unique sales propositions, and brand positioning. The NAICS data indicated he should be achieving a net profit of 10-12%.
Operations: We scrutinized ordering, receiving, warehousing, delivery, installations, and any bottlenecks in the process.
Finance: Beyond cash flow, we audited the last five completed jobs from bid to finish. Only one job met the planned gross profit.
Alarmingly, cash flow was declining. We knew any improvements had to be cash-validated.
Strategy Meets Execution
Strategy is vital, but it must align with execution. According to Harvard Business Review, only 8% of business owners excel at both. Over the next six months, I collaborated with Mike and his team to streamline and simplify operations, identify roadblocks, and plug profit leaks.
Our efforts bore fruit. Profits improved, and morale soared with every quarterly review. Just last month, Mike told me that without hiring a consultant, he wouldn’t still be in business. He was in high spirits, having just “fired his bank” over their high-priced credit line. Initially concerned about his financial stability, I learned he had recently secured a major contract for a large condo project (34 units). Despite rising material prices, labor costs, and freight, he confidently declared, “No worries, we’re good.”
Mike shared that he topped $6 million in revenue for the second consecutive year, boasting a 12% net profit. “Now I’m my own bank,” he said with a grin. I couldn’t resist teasing, “You know I’ll bet you’ll give me a fantastic deal when I replace the hardwood flooring in my house!”
The Reward of Impact
One of the most fulfilling aspects of being a Senior Business Consultant is witnessing the tangible difference we make in business owners’ lives. It’s not just about financial gain; it’s about what they can achieve when they see the results of their hard work and sleepless nights.
I always ask, “What’s your ‘Why’?” at the start of every consulting engagement. How would your life change? Mike ensured his team was well-compensated, allowing them to thrive. His children can attend good colleges without the burden of student debt, and he’s close to paying off his mortgage while building a solid 401K. He even sits on two boards for faith-based non-profits—one focused on providing clean drinking water in Sub-Saharan Africa and the other offering after-school care for at-risk kids.
Powerful Tools Accelerate Consulting
Now, thanks to the powerful Kingdom Growth Engine software I can accomplish months of planning and strategy in a fraction of the time. Gone are the late nights spent in a Hampton Inn drafting reports. This AI-enabled tool adheres to my business improvement methodology—Sales, Ops, Finance, and Cash. By focusing on 7-10 key areas, I can illustrate how small incremental improvements can significantly accelerate revenue growth and profits.
Navigating My Storms
As I face a few storms of my own in my business, I’ve been reflecting on some key lessons learned from the sea:
Be Prepared: Trusting your experience, training, and crew is essential. Major cruise lines exemplify this by constantly preparing for potential emergencies before they arise. Preparation is your best defense.
Communicate Constantly: Keep the lines of communication open with your team. Each member should “stay in their lane,” focusing on their specific roles while trusting that the Captain—whether it’s you or someone else—has the weather updates and the course mapped out. Working together is crucial for effective execution.
This Too Shall Pass: Remember that storms don’t last forever. Challenges may be daunting, but they are temporary.
Steady Hand on the Wheel: Our consulting clients need our steady hand to guide them, but it must then it must be their hand on the wheel. While our expertise is invaluable, the focus should be on empowering them to navigate their challenges with their team.
Leverage Powerful Tools: Resources like the Kingdom Growth Engine can help clients plan, prepare, and execute strategies that not only keep them afloat but also ensure they make measurable progress, even in adverse conditions.
Adjusting Your Sails: Ultimately, you can’t change the direction of the wind, but you can adjust your sails!
Embrace the challenges and remember my favorite quote:
“Twenty years from now you will be more disappointed by the things you didn't do than by the ones you did. So, throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.” — Mark Twain.
In both sailing and consulting, the journey is just as important as the destination.
So, let’s set sail toward new horizons!
To continue the conversation or schedule a call:
don@dongleasonconsulting.com 407 408-4245 Don Gleason, MBA | LinkedIn
Book on Don’s Calendar calendly.com/don-4563
Comments