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The
client was a three-man team who had developed a product that
was subsequently found to have huge appeal in the worldwide
postproduction market. The client company had grown to £4m
turnover. Although their engineering and software skills were
strong, as was their market knowledge, the three directors
failed to apply basic business controls to their firm. Collingwood
was hired to provide improved control over the operations
and particularly the financial side of the business.
The
client had rapidly grown to £4m t/o, but struggled to maintain
control of both its finances and its operations. The most
significant improvements made by Collingwood were:
- Control
of cash. Previously the client had no control over cash.
Weekly control over current assets and liabilities was established
within a month. This meant that directors could act with
confidence when carrying out product and market development,
and had a degree of confidence about the future.
- Management
accounts. Previously there had been no reporting to show
the cost of the various functions and projects undertaken
by the firm. This allowed the directors to understand the
implications of their policies and the profit and cash effect
of these policies.
The
firm became more profitable and started to grow again.Shortly
after Collingwood involvement (16 months, for 58 days) the firm was sold to Miranda Technologies, a Canadian multinational.
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