CaseStudy

Case Studies

Real World | Real Problems | Real Results

Violand Management Associates has partnered with countless restoration and cleaning small businesses to develop, implement, and hold employees accountable for a variety of advanced, customized business solutions. Entrepreneurs and executive teams choose to work with VMA for a variety of reasons, including correcting cash flow, expanding into new services or territories, increasing efficiency and performance, overcoming Stage 2 Stall™, hiring ‘A’ level performance employees, and more. Violand clients are found throughout North America and range from just getting started to over $20M in sales. Clients trust VMA because no one in restoration and cleaning understands the complexities of developing people and profits like VMA. Several real-world case studies have been listed below, showing how Violand Business Development Advisors identify areas of improvement, formulate strategies, and manage impactful, powerful solutions. If these are the results you are looking for, contact Violand Management Associates to learn how to get started today down the path of achieving your professional goals.

Case Study A - Overcoming Stage 2 Stall

Approximate Client Size When Started with VMA:

$850,000 in 2009

Services Offered:

Full-service restoration and reconstruction company

Brief Background of the Client:

The company was in business for four years before joining Violand Management Associates, and sales had plateaued.

Business Conditions Upon Hiring VMA:

The company desperately needed to increase revenue and correct serious cash flow issues. The executive and management teams needed further development to lead the company over the $1,000,000 mark and beyond. There were significant family dynamics in play with multiple family members in key positions within the company. The goal was to implement well-defined policies and procedures and expand the abilities of the personnel to where they would no longer need a business consultant.

Strategies Implemented:

A Violand Business Development Advisor helped refine all internal financial data and reporting to be more timely and increasingly accurate. Through VMA, the company was able to implement strategic planning and goal setting for the overall organization and the individual management teams. VMA installed a system of responsibility and accountability through effective performance evaluations of all employees on a daily, weekly, and annual basis. VMA also assisted in a total reorganization of the business, including redefining and instituting job descriptions and job specifications. This resulted in poor- and average-performing employees leaving the company and ‘A’ level professionals replacing them through competent hiring practices.

Results:

The company operates extremely efficiently and profitably with quality employees and managers at every level. The executive team provides leadership and vision and has confidence that the company is moving in the right direction. The cash flow issues have been cleaned up. Total revenue in 2013 topped $2,500,000.

Case Study B - Launching a New Business

Approximate Client Size When Started with VMA:

$500,000 in 2012

Services Offered:

Janitorial services and floor care– primarily commercial projects complemented by some residential carpet cleaning

Brief Background of the Client:

Initially part of a family business, the company was spun off by the son to create a completely separate entity with no relationship to the previous business.

Business Conditions Upon Hiring VMA:

The company was profitable but lacked the structure and organization needed to grow. That lack of structure specifically needed attention in administration and supervision, in order to take the heavy work load off the husband and wife executive team. The owners wanted to expand into water mitigation to increase revenue. The company was faced with changing its name due to a lawsuit pursuant to the passing of the owner’s father.

Strategies Implemented:

The company partnered with Violand Management Associates to create and implement a comprehensive marketing plan to execute the business name change. VMA then designed and helped populate administrative and inside/outside sales positions with quality employees through a robust hiring process. A Production Manager was hired for the janitorial division. VMA then helped the ownership team plan and execute the startup of a water mitigation business, including work processes, documents, and sales planning and execution, leading to the development of referral sources.

Results:

The water mitigation division generated $85,000 worth of additional revenue in the first 8 months. The overall revenue for 2013 totaled over $935,000, despite the loss of their largest janitorial account in the first quarter due to an expiring national contract. They exceeded their sales plan by 30% and developed a recognized brand in the community. The company is staffed and run by ‘A’ level employees, promoting a healthy culture and commitment to service.

Case Study C - Expanding Restoration

Approximate Client Size When Started:

Below $750,000 in 2009

Services Offered:

Carpet cleaning, full-service restoration, and janitorial services

Brief Background of the Client:

The owner started the business in 1996 as an owner-operator with one truck and virtually no startup capital. He lived in an old bus for the first year before moving into his first house, which had no indoor plumbing for the next two years. He offered only cleaning services until 2008, when he expanded into restoration.

Business Conditions Upon Hiring VMA:

In 2009, the company was doing only a small amount of restoration (all mitigation) work that mainly came from a single out-of-state referral source. There were immediate needs to grow the business, including diversifying and expanding the referral sources while also introducing repair and reconstruction services. Cash flow was extremely tight, and the owner’s available borrowing ability on the LOC was minimal. There was also no experience with ownership or construction, resulting in additional challenges.

Strategies Implemented:

VMA began by getting the owner involved in low cost, grass roots business development activities to help find new referral sources for restoration work. The company was then rebranded to include the additional services it was providing and began route marketing to agents. Next, an organizational structure was put in place to support the increase in work. This included Estimators, Project Managers, an Operations Manager, and several administrative positions. VMA automated the workflow process and reporting structure and recently added a Controller and a new Business Development Specialist. The company, including ownership and managers, have invested in multiple professional training programs through Violand Management to develop behaviors and tactics to continue to grow the business and handle new responsibilities.

Results:

Today this company is extremely profitable and lean, allowing the owner a significant upgrade in housing. Revenue has increased to over $2,450,000 and net profit has soared. The current ratio went from .887:1 to 1.6:1, and the debt to equity ratio lowered from 8.16:1 to 1.49:1. The company has added multiple high-performing employees and recently purchased a new building, stemming from the company’s ability to capture significant market share and brand recognition.

Case Study D - Growing a Mature Company

Approximate Client Size When Started with VMA:

$2.8M in 2011

Services Offered:

Commercial construction and full-service restoration

Brief Background of the Client:

The owner started the business in 2004 with another partner as a commercial construction company servicing primarily HOA clients. The owner has a strong project management background in HOA construction but very little experience in restoration. The company originally provided large-scale rehab and construction defect repair services in the Southern California area. They also owned a Chem-Dry franchise until they sold it late in 2013.

Business Conditions Upon Hiring VMA:

They had a large amount of debt and significant cash flow issues: the bank had called their line of credit and termed it as note. The owner terminated his partner in 2010 and was forced to exercise a buyout with no cash or borrowing ability for operating capital. The owner retains 90% of the company ownership and his son holds 10% equity in the business. They jumped into the mitigation business through More Floods and started getting work from plumbers immediately. The business had always been profitable but not profitable enough to change its poor cash position. This, coupled with the limited borrowing ability for operating capital, only made things more challenging because of the large construction projects they were performing.

Strategies Implemented:

Continuing to promote the water damage emergency business was the primary objective to increase gross profit and offset the cost of financing the large construction projects. Since the client was limited in borrowing ability, he chose to bring some of the construction work in-house and perform it with his own staff, as opposed to using subcontractors. This gave him better control of the quality and decreased the overall cycle time of the projects. This also increased cash flow while reducing the cost of sale. A better budgeting and contract negotiation process was also implemented to reduce subcontract costs and improve project funding. Additionally, he was able to capitalize on existing relationships with HOAs to secure more restoration work at higher profit margins.

Results:

The company has increased sales from $2.8M to $4.5M and net profit from $121K to $244K. The company’s current ratio has gone from .67:1 to 2.33:1, the debt to equity ratio from 2:15:1 to .5:1, and owner’s equity from $211K to $520K. The owner and his son are in the process of completing their Certified Restorer (CR) Designation. With the assistance of VMA, they are beginning to work on a succession plan to transition control of the company to the son.