Increased Client’s Gross Profit by 50%

A client was selling large quantities of a clothing line to hundreds of retailers nationwide, but her sales weren’t very profitable. She also had significant excess inventory that was going to waste and costing her money. We needed to figure out why.

Tackling the Mount Everest of Sales Data

Our client was overwhelmed by a mountain of sales data that she couldn’t make sense of. Momentum CFO knew that if we could present information to her visually, it would be much easier to understand and act upon.  To show her money-making opportunities, we developed dashboards that provided insight about her sales and profitability.

Things we discovered included:

  • The most popular colors, sizes, and product lines:
    We focused on producing those items to increase sales volume and ensure that there was little to no excess inventory that would go to waste. 
  • Where her customers were located, how frequently they ordered, and the average order size:
    By plotting sales by customer on a map, we discovered opportunities to sell more in specific markets. She hired another salesperson to increase sales to existing customers and capitalize on new sales opportunities in underserved markets.    
  • Which promotions had been most effective:
    The client ran similar promotions that increased sales volume and improved brand recognition. 
  • The gross profit for many of her products was too low:
    We developed a new pricing structure that increased the profit on sales to national retailers by 50%.  

Improved Client’s Cash Flow & Reduced Debt by Over 75%

A professional services client that had been in business for several years was experiencing high growth. She had attracted the attention of large, well-known corporations who wanted her services. She needed to hire more staff to support the new business, but she didn’t have a clear picture of the costs, and she was short on cash.

Forecasting for Sustainability

We used our crystal ball to develop profit and loss forecasts to help predict the future. We determined how many new employees she’d need to hire and other expenses she’d incur to add clients and grow her business. Next, we needed to find the money to pay for those expenses.    

Reducing the Cost of Debt

In our client’s first few years of business (prior to working with Momentum CFO), she was unable to qualify for loans from traditional lenders. Her only choice had been to borrow from online lenders. She obtained several loans with double-digit interest rates as high as 31%! Debt can be a useful tool to finance business growth, but it’s important to proceed cautiously. Unfavorable loan terms and sky-high payments can sink a business.

Results of Our Predictions and Preparations

  • Momentum CFO worked our connections with lenders and helped her obtain a new loan at under 5% interest.
  • She paid off the high-interest rate loans with funds from the new loan. Her cost of debt decreased by over 75%, saving her five figures each month.
  • Her cash flow improved significantly. With more cash in her bank account, she was able to hire the staff needed to grow her business sustainably.

Helped Client Obtain Over $700K in COVID Assistance

Early in the pandemic, a client that provides B2B services was struggling. Many of the businesses he serves were shut down by government order. He had healthy cash reserves but was uncertain about when business would pick back up. Our team partnered with him to help his business weather the storm.

Navigating Uncertainty due to Covid-19

Our client has been in business for several decades. He’s built a wonderful reputation for great service and for caring deeply about his employees. He wanted to keep them on the payroll so they could continue to support their families. But it was difficult for him to navigate the ever-changing world of financial assistance programs such as Economic Injury Disaster loans, Paycheck Protection Program loans, the Employee Retention Tax Credit, and state grants.

That’s where Momentum CFO came in…

With experience scoring millions of dollars in financial assistance from these programs for our clients, we knew we could save the day for him too. We helped him obtain over $700K to weather the revenue downturn.

He was able to keep all his employees on the payroll. They didn’t suffer financially.

Both of his PPP loans were fully forgiven. He got back on track in 2020 and achieve even greater financial success in 2021.

In case you’re wondering, all of Momentum CFO’s clients’ PPP loans were forgiven. Free money is the best kind!