Boosting Profitability with Data-Driven Dashboards

A client selling her clothing line to hundreds of retailers nationwide faced unprofitable sales and significant excess inventory. To address these issues, we needed to uncover the root causes and develop effective strategies.

Tackling the Mount Everest of Sales Data

Our client was overwhelmed by a mountain of sales data that she couldn’t decipher. At Momentum CFO, we knew that visualizing this information would make it easier to understand and act upon. We developed intuitive dashboards to provide insights into her sales and profitability.

Key Discoveries and Actions

  • Popular Colors, Sizes, and Product Lines: By identifying the most popular items, we focused production on these high-demand products, increasing sales volume and minimizing excess inventory.
  • Customer Locations and Ordering Patterns: Mapping sales data revealed opportunities in specific markets. The client hired an additional salesperson to boost sales to existing customers and tap into new, underserved markets.
  • Effective Promotions: Analyzing past promotions helped us identify the most successful strategies. The client replicated these promotions, boosting sales volume and enhancing brand recognition.
  • Low Gross Profit: We developed a new pricing structure that increased the profit margin on sales to national retailers by 50%, significantly improving overall profitability.

Achieving Financial Success

Through our data-driven approach, we transformed the client’s sales strategy, leading to increased profitability and reduced waste. Our client now enjoys a more efficient and profitable business model, thanks to the actionable insights provided by our customized dashboards.

Slashing Debt Costs by 75% for Sustainable Growth

A professional services client experiencing rapid growth had attracted the attention of large, well-known corporations eager for her services. She needed to hire more staff to support her business expandion, but did not have a clear understanding of the costs or sufficient cash.

Forecasting for Sustainability

To help predict future financial needs, we developed detailed profit and loss and cash flow forecasts. This allowed us to determine the number of new employees required and other expenses necessary to support her growing client base. The next step was to secure the funds needed to cover these expenses.

Reducing the Cost of Debt

In her early years of business, before partnering with Momentum CFO, our client had to rely on high-interest loans from online lenders. Some of those loans came with rates as high as 31%. While debt can be a useful tool for financing growth, unfavorable loan terms and high payments can negatively impact cash flow and jeopardize a business’s stability.

Results of Our Strategic Planning

  • Securing Affordable Financing: We leveraged our connections with lenders to help her obtain a new loan with an interest rate under 5%.
  • Reducing Debt Costs: Next, she used the new loan to pay off the high-interest loans, reducing her cost of debt by over 75% and saving her five figures each month.
  • Improving Cash Flow: Finally, with improved cash flow, she was able to hire the necessary staff to support sustainable business growth.

Achieving Sustainable Growth

By forecasting future needs and securing affordable financing, we enabled our client to effectively manage her professional services’ firm’s rapid growth. She now enjoys more stable cash flow and is well-equipped to continue expanding her business.

Helping a Client Thrive During the Pandemic

Early in the pandemic, a long-standing B2B service provider faced a severe revenue downturn as many of their clients’ businesses were shut down by government orders. Despite having healthy cash reserves, the business owner was uncertain about when operations would normalize. That’s when our team stepped in to help.

Our Client’s Commitment to Employees

With decades of experience and a stellar reputation for exceptional service and employee care, our client was determined to keep his staff on the payroll to support their families. However, navigating the complex landscape of financial assistance programs, including Economic Injury Disaster Loans (EIDL), Paycheck Protection Program (PPP) loans, the Employee Retention Tax Credit (ERTC), and state grants, was a daunting task.

Strategic Partnership with Momentum CFO

Leveraging our extensive experience in securing millions of dollars in pandemic financial aid for our clients, we partnered with the business owner to secure nearly the crucial financial assistance he needed to maintain his entire workforce without financial hardship.

Achieving Financial Stability and Growth

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Both PPP loans were fully forgiven, allowing the business to stabilize and even achieve greater financial success in 2021. Our client’s dedication to his employees and our strategic financial guidance ensured a swift recovery and a stronger financial footing.

Success Across the Board

Notably, all of our clients’ PPP loans were forgiven, underscoring our expertise in navigating financial assistance programs. At Momentum CFO, we believe that securing financial stability for our clients is paramount, especially during challenging economic times.