Crossroads has helped businesses in a wide variety of industries improve their operations. Read on to learn about some of Crossroads' successes.
A profitable acquisition
One of the 50/50 partners of a multiplant steel processing business wanted to buy out the other partner and double the company’s output and profitability within five years. The partner turned to Crossroads for guidance in acquiring the entire company and restructuring it post-buyout.
Crossroads performed a business valuation to determine the business’ market growth potential, an appropriate leadership structure and how much financing the company could secure. After finding that the business didn’t have enough cash on hand to cover the debt the buyout would incur, Crossroads helped the company cut costs in its inventory management, administration and labor force. As a result, the partner was able to raise the money to buy the company.
After the buyout, Crossroads also helped the partner establish a key team of company decision-makers and mentored the team’s members in leadership and business practices. The changes poised the newly organized business for success as the partner pursued his original vision of doubling in size. The company surpassed its first-year goal by 15 percent, and is now planning to expand its footprint into new regions.
Turning a successor into a leader
A specialty freight distribution company came to Crossroads for assistance in multiple areas. The business’ profits had begun to slip, and the owners of the family-owned business wanted to turn things around quickly. In addition, the owners planned to name their daughter as the company’s successor, but she lacked the necessary experience to run the business successfully.
Crossroads replaced the business’ aging business model with a new plan that included a restructured labor force, improved sales techniques and better delivery of services. Once the new business plan was in place, Crossroads focused on training the next generation of leadership, developing a fast-tracked executive master’s in business administration program for the owners’ daughter to bring her up to speed.
The results of Crossroads’ engagement speak for themselves: The business increased its sales calls to 30 a week from three a month, and increased total sales by 20 percent. The company also cut labor in its plants by 13 percent while boosting productivity by 45 percent. As a result, the company began generating profits for the first time in three years, and is now prepared for sustainable future success under its new leader.
Tapping into new opportunities
A truck dealership suffered from particularly bad timing: One year after it financed a major expansion based on anticipated future revenue, its parent company discontinued the vehicle line. Faced with either rapidly evolving the business or shutting its doors, the family-owned business hired Crossroads to develop a plan to save its $15 million operation.
In addition to the truck dealership, the business included a truck accessories division, body shop, parts and service departments, towing service, leasing service, and tire distributorship. Crossroads calculated the profit of each division to assess the effect of losing the dealership and ensure resources were allocated effectively. While crunching the numbers, Crossroads found that many financial records were incomplete and missing, due, in part, to the fact that a non-accountant handled the business’ books.
After determining the company’s most profitable branches, Crossroads helped expand its most lucrative operations. The business began targeting major fleet accounts for its service center; joined the towing lists for local and state police departments; and added tractors, lawn care equipment and chain saws to its commercial sales division. Crossroads also instituted formal accounting procedures for the company and revamped staffing to fit with the company’s new structure, including the addition of a general manager. Six months after Crossroads’ initial involvement, the business was breaking even financially, and has continued its upward trend since then.
Better employees mean better performance
When Crossroads began working with a local public library, team spirit was scarce. The library’s operations were disorganized, employees competed for resources, and the library’s finances were unclear. Partnering with the library’s executive director, Crossroads launched intensive leadership training designed to promote an ideal working atmosphere and jump-start the library’s restructuring.
Crossroads worked closely with library employees to establish new standards for each aspect of their jobs, including customer service, accounting and communication. Crossroads also helped the staff to implement a new performance review system, goals for the future and a detailed accountability plan for each part of the library’s operations.
With an improved organizational structure in place, the library had a clear budget for the first time in years and began accumulating a cash reserve. Circulation also increased, patron attendance improved by 25 percent, and grant and donation funds grew by 110 percent. Employees now enjoy coming in to work at the library, and the entire community is benefiting from the changes.