Business Plans--Renaissance consultants

Business Plans

Companies often fail to recognize that business plans are essential to both maintain and grow the business. With Renaissance consultants' background of experience, precise business plans can be written and then executed. The following is an excerpt from Renaissance files showing exactly what can be accomplished with the proper tools.

Type of Company:	Manufacturer and clinical laboratory providing testing and treatment sets for immunological disorders
Type of Ownership:	Public: Wholly Owned Subsidiary of NASDAQ Company
Position:	Interim President and CEO

Problem:	A holding company had acquired this ten-year-old operation at auction for less than the value of its real estate. Prior to acquisition the company was selling raw materials to the clinical lab market and had minimal annual sales. The parent had attempted to reposition and add products during a period of two years, but sales only increased enough to break even.
Action:	Assigned to evaluate the situation and either turn the operation around or sell it. Developed recovery/business plan. After one month evaluation, determined that company could become profitable. The plan was accepted; proceeded to restructure management, products, marketing and sales. Completely revamped manufacturing and quality control to improve throughput efficiencies. Installed PC network computer system and financial controls. Repriced and revised products to better serve the market. As part of the plan, secured debt financing with local bank. Recruited new general manager to groom for president and obtained additional FDA and Bureau of Biologic approvals.
Results:	Implemented plan which resulted in a dramatic increase of sales in two years. Gross margin increased from 40% to 78%. Pre-tax profits climbed from a break even to 20%. Company went from a cash user to a cash provider to the parent. The new president was trained and installed.