Mervin Winston, Ltd. - Case Studies

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Mervin Winston, Ltd.
CPA's and Business Consultants
3033 Campus Drive Suite W115
Plymouth, MN 55441
Phone: 763-557-6030
Fax: 763-557-9030
E-mail: info@mwinstonltd.com

Case Study - CFO for Hire

	Client Industry:	Automobile Mechanical Repair

	Client Issue:	Inadequate accounting system, inaccurate financial reporting, need for long term capital funding

	Background:	A family-owned business offering automobile mechanical repair services had inadequate sales volume, a low visibility location, as well as poor marketing and sales generation processes. Their accounting system was inadequate with untimely and inaccurate financial reporting. The owner needed long term capital funding services.

	The Mervin Winston, Ltd., Solution:	Developed a business plan and assisted owner in presenting request to investor for capital funding. Worked with business owner to develop and install an improved accounting system. Developed and implemented actions to update financial information and generate accurate and current financial reports. Designed and installed various methods that the owner used to attract business to his new location. Worked with business owner to adjust pricing to cover cost structure. Established monthly review process to review financial and operational reports and to develop corrective actions to steer business back to planned course. Worked with the business owner to teach and implement skills on how to work "ON" versus "IN" the business. The objective of this was to strengthen management capabilities.

	The Results:	Successful in securing a long term capital funder, which provided the financing to relocate the business to a high visibility location in a rapidly expanding Twin City suburban community. Monthly sales increased by 50% within 60 days. Generated and implemented actions to update financial information and started producing current financial reports in less than 45 days. Sales increased to a consistent monthly level of more than 125% of the monthly level compared to the previous year. In less than two years quarterly losses of $30,000 to $40,000 were turned around to quarterly profits of $30,000. Worked with owner to negotiate payment terms with creditors at a level that would allow adequate operating cash flow and satisfactorily retire debt over a two to three year period.