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10 Ways to Restart and Improve Company Profits
John Collard -- Turnaround Interim Management Expert John Collard -- Turnaround Interim Management Expert
Annapolis, MD
Monday, February 14, 2022

Small Business Today Magazine

Small Business Today Magazine published Article of Interest by John M. Collard, turnaround specialist, interim executive, outside independent director, capital finder, and private equity advisor.




www.StrategicMgtPartners.com/sbtprofits.pdf   Formatted Version




10 Ways to Restart and Improve Company Profits.


By John M. Collard




Restarting after Coronavirus shelter-in-place, social distancing orders is a formidable task, but can be done. This requires changes in thinking about how the company operates and what it will look like. Restart ideas.


Add New Products And Services To Offer Existing Customers.

Look for change orders to expand work for customers under contract. Needs change and customers will add business when they like what you do for them. Consider bundling or unbundling products and services and reprice them to make them more acceptable to customer need.


Enter New Markets With Your Existing Product And Service Offerings.

Figure out what you do best and develop new business in new areas. If you have expertise you perform on Government contracts, for instance, then try marketing to Commercial Customers. Your products and skills are transferable. Many restaurateurs have adapted to curb-side and delivery service, they can also expand to catering events or operating corporate facilities. Repurpose aging products and services. Produce private label for others. Contract with subcontractors to do some of the work. Be creative.


Understand And Adjust Pricing Based On Cost-Driver Activity.

Think in terms of Activity-Based Costing and Net Profit Margin. When Overhead is allocated (or not) on the wrong cost base, then profits become skewed and adversely affect pricing.


Don't allow one activity to subsidize another. Balance price-to-cost ratios based on the activity that uses the support structure. For example; if one product requires the majority of plant and facilities to produce, then allocate costs by square foot usage, instead of by revenue.


Think of every product or service your company sells as if it were a separate business. Does each one contribute profits? Perhaps not.


Give Customers What They Want.

When you give customers exactly what they want, pricing is not an issue for them. When you deliver value, that out-weighs price, because that value helps the customer meet their needs and produce better results. Give them only what they are willing to pay for.


Sometimes You Need To Fire A Customer

When one customer is absorbing all of managements' time and attention, and they are not a profitable account, renegotiate or fire them. Pursue profitable accounts. Unless there is a sound reason why you are subsidizing that customer, then why work at a loss?


Meticulously Manage Assets And Resources.

Sell assets not actively being used to generate profit. Why hold assets that are idle or draining cash?


Human assets can't be sold, but they can be furloughed. Carefully manage resources that are not billable to contracts.


Develop favorable relationships with vendors that allow you to receive product on consignment and pay once that product is sold. Actively collect accounts receivable.


Make Sure Your Team Knows What Is Expected.

Implement a clear set of expectations, so your team has proper guidelines to follow. Instill a sense of urgency throughout your business. Never allow complacency. Promote excellence throughout your business, from the front desk to key executives.


Management, marketing and business development, customer support, all have a very important role. Retain customers by providing great customer service, or lose them when you don't perform. Stress understanding specific customer needs during the BID process to develop winning strategies, and increase win ratios.


Base Incentives On Profits Instead Of Revenue

Link compensation to productivity for everyone in the company. Employees should only get paid for results when they produce, and not paid when they don't. For example; pay incentives for sales people based on gross margin instead of revenue, to drive the profit motivation.


Merge with Or Acquire A Partner Company

Combining company operations can add complimentary skills and products. Utilize the best attributes of both organizations, and eliminate duplicate overhead. Part of a larger, more profitable pie is always better than struggling to cover costs.


Create An Advisory Board To Seek Expert Input From Outside Your Organization.

Outside expert influence can bring a fresh perspective, and new ideas. Explore strengths and how they can be applied elsewhere to drive profits and cashflow. Explore weaknesses and how they can be overcome and improved. Studies show increased profitability when advisors get involved.


Drive your team to think in terms of profits, cashflow, expansion, and creativity. They will reward you with profitable activity. Be proactive.



Take New Products To Existing Customers. Take What You Do Best To New Markets.





About the Author: John M. Collard

John is Chairman of Strategic Management Partners, Inc. (410-263-9100, www.StrategicMgtPartners.com ) in Annapolis, Maryland.  John is a Certified Turnaround Professional (CTP), and a Certified International Turnaround Manager (CITM), who brings over 35 years senior operating leadership, $85M+ asset and investment recovery, 45+ transactions worth $1.2B, and $80M fund management expertise to run troubled companies, serve on and advise company boards of directors, and raise capital. John has served as CEO, CRO, Receiver, senior executive to turn around troubled entities, and serves as an outside director.  John is enshrined in the Turnaround Management, Restructuring, and Distressed Investing Industry Hall Of Fame. John is Past Chairman of the Turnaround Management Association (TMA), Past Chairman of the Association of Interim Executives (AIE), and a Senior Fellow of the Turnaround Management Society. John is a co-Founder of TMA. John is Prince George's Business Leader of the Year. John is honored with the Interim Management Lifetime Achievement Award from the Association of Interim Executives. John is honored as Most Admired CEO in Maryland by Daily Record. John is honored with SmartCEO Distinguished Leadership Award, and others.


About the Firm:

Strategic Management Partners, Inc. (www.StrategicMgtPartners.com 410-263-9100)  is a turnaround management firm specializing in interim management and executive CEO leadership, asset and investment recovery, board and private equity advisory, raising money, and investing in and rebuilding underperforming distressed troubled companies. The firm has been advisor to Presidents Bush (41 & 43), Clinton, Reagan, and Yeltsin, World Bank, EBRD, Company Boards, and Equity Capital Investors on leadership, rebuilding troubled companies, investment recovery, turnaround management and equity investing. SMP is celebrating 25+ years of service to its clients. SMP was named Maryland's Small Business of the Year, and received the Governor's Citation, Governor Martin J. O'Malley, The State of Maryland as a special tribute to honor work in the areas of turning around troubled companies and saving jobs in Maryland.  Turnarounds & Workouts Magazine has twice named SMP among the 'Top Outstanding Turnaround Management Firms'. American Business Journals named SMP among the Most Active Turnaround Management and Consulting Firms in Baltimore, Washington, and the Mid-Atlantic Region.  Global M&A Network Turnaround Atlas Awards named SMP as Boutique Turnaround Consulting Firm of the Year.


Strategic Management Partners, Inc.: turnaround managers ready to run troubled companies, recover assets from investments gone bad, advise boards of directors and investors on company viability in distressed situations.  We provide strong interim and operational leadership, board leadership, strategic planning, financial, defense conversion, business development, sales and marketing acumen developed building organizations in large and small companies, including President of public & private middle-market companies providing solutions to Commercial, Federal Government, International markets. Enterprises range from start-up to $100+mil. Industry expertise: Manufacturing; Job Shop; Engineering Services; Computer Processing/Services/Software/Integration; Communications; Defense Electronics; Aerospace; Federal Government Contracting; Systems Integration; High-Tech; Finance; Marine Services; Real Estate Development; Construction; Fabrication; and Printing.







www.StrategicMgtPartners.com   Turnaround Managers


www.StrategistLibrary.com   or  www.StrategicMgtPartners.com/library/libindx.html


10 Ways to Restart and Improve Company Profits. article at: www.StrategicMgtPartners.com/sbtprofits.pdf>


Why Hire Outside Directors When Private Companies Don't Have To? article at: www.StrategicMgtPartners.com/jpe-dira.pdf>


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Raising Money article


Is Your Company in Trouble?  Published by Corporate Board Magazine


Managing Turnarounds in Times of Crisis Published by NACD Directorship Magazine


Managing Turnarounds Phases and Actions Published by RMA Journal


Social Media:

John M. Collard on Facebook at  http://www.facebook.com/JohnMCollard


John M. Collard on LinkedIn at  http://www.linkedin.com/in/JohnMCollard


John M. Collard on Twitter at  http://twitter.com/JohnCollard


Collard on NewsReleaseWire



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Name: John M. Collard
Group: Strategic Management Partners, Inc.
Dateline: Annapolis, MD United States
Direct Phone: 410-263-9100
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