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Manufacturer of Precision Machined Components
Background
The firm is a manufacturer of precision machined components used in the
office equipment and computer industries. At certification the firm had
6 employees and annual sales of approximately $450,000.
The firm, founded in 1996, was experiencing a changing business climate that
broadened the field for precision machining expertise. The owner was trying to
position the firm to weather the changing climate by purchasing equipment capable of doing multiple tasks.
Formation of strategic alliances is another industry trend affecting the firm's
business approach.
Assistance Provided
To generate new sales dollars, the firm needed a solid foundation to
build from. Thus, the recovery strategy recommended development of a strategic
business/marketing plan. This provided the firm with immediate tangible
assistance that addressed short-term problems and provided a beginning structure
for the firm’s long-term goals.
This plan of action created and organized the marketing function and included:
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Establishing realistic goals and objectives based on the firm's capabilities.
Introducing the firm's management to relevant business/marketing
techniques
including market segmentation.
•
Contact management, key account selling, and pertinent business
management issues.
•
Developing initial sales and marketing materials to support the firm's
target
markets.
•
Creating a business/marketing program to achieve the firm's goals.
Project Results
The firm has a sound and accurate marketing
plan that outlines a precise road map for the business including a detailed
sales forecast. The sales forecast was developed for the short-term, with
on-going adjustments as needed. Next, the project recommended, organized, and
categorized appropriate sales and marketing tools vital to attracting new
business and growing the current business. The combination of these two elements
had a positive effect almost immediately putting the firm on track for a 25 percent
increase in sales and a 67 percent increase in employment.
Other significant events happened due to this project. The firm relocated to a
much larger facility (three times the size of its old building). A substantial
increase in business has afforded the firm to purchase an additional CNC
machine. With the assistance of the consultant, a newly restructured
line-of-credit was made available to the firm by a business-friendly bank. The
firm is also booking a four-month backlog, the largest in the firm’s history.
One final result that cannot be quantified in dollars or cents is the owner's
professed greater respect for business, equipment, people, and presentation.
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