Manufacturer of Precision Machined Components

Background
The firm is a manufacturer of precision machined components used in the office equipment and computer industries. At certification the firm had 6 employees and annual sales of approximately $450,000.

The firm, founded in 1996, was experiencing a changing business climate that broadened the field for precision machining expertise. The owner was trying to position the firm to weather the changing climate by purchasing equipment capable of doing multiple tasks.  Formation of strategic alliances is another industry trend affecting the firm's business approach.

Assistance Provided
To generate new sales dollars, the firm needed a solid foundation to build from. Thus, the recovery strategy recommended development of a strategic business/marketing plan. This provided the firm with immediate tangible assistance that addressed short-term problems and provided a beginning structure for the firm’s long-term goals.

This plan of action created and organized the marketing function and included:

• Establishing realistic goals and objectives based on the firm's capabilities.
Introducing the firm's management to relevant business/marketing
techniques including market segmentation.
• Contact management, key account selling, and pertinent business
management issues.
• Developing initial sales and marketing materials to support the firm's
target markets.
• Creating a business/marketing program to achieve the firm's goals.

Project Results
The firm has a sound and accurate marketing plan that outlines a precise road map for the business including a detailed sales forecast. The sales forecast was developed for the short-term, with on-going adjustments as needed. Next, the project recommended, organized, and categorized appropriate sales and marketing tools vital to attracting new business and growing the current business. The combination of these two elements had a positive effect almost immediately putting the firm on track for a 25 percent increase in sales and a 67 percent increase in employment.

Other significant events happened due to this project. The firm relocated to a much larger facility (three times the size of its old building). A substantial increase in business has afforded the firm to purchase an additional CNC machine. With the assistance of the consultant, a newly restructured line-of-credit was made available to the firm by a business-friendly bank. The firm is also booking a four-month backlog, the largest in the firm’s history. One final result that cannot be quantified in dollars or cents is the owner's professed greater respect for business, equipment, people, and presentation.