Organization of a growing sole proprietorship company

Context: Italian company located in Friuli Venezia Giulia, operating in the sector of heavy metal carpentry and logistics. Revenue of 8 million Euros, 30% of which in the foreign market.

 Problem 

  • Rapidly growing company whose sole owner holds many key roles in the organogram.
  • Contained marginality.
  • Lack of a three-year plan and of a monthly control of the company’s performance.
  • Marginal use of an information system mainly tied to the administrative sector.
  • Lack of a computerized production program.
  • Need to define key roles of the organogram and to program the personnel turnover in the company.
  • Financial positions to be increased or renegotiated.
  • Necessity of new credit limit without guarantees and/or without increased bank guarantees.

 Suggested solutions 

  • Presence in the company of a Temporary manager to help the entrepreneur to identify priority activities on which to intervene.
  • Study and draft of a three-year Business Plan and of the company’s Budget divided into sales budget, purchase of raw materials budget, personnel costs budget and investment budget.
  • Study of causes of low marginality with analysis of costs/pricelists.
  • Proposal of improved use of the current information managerial program with:
    • Systematic uploading of all purchases and sales.
    • Update of bills of material of the various articles.
    • Survey of the monthly stock.
    • Uploading of man-hours, machine-hours, lists of requirement of raw materials.
    • Use of a young resource dedicated to the activation/management of procedures.
  • Proposal of hiring new key roles supporting/substituting the current personnel close to retirement.
  • Proposal of establishing relationships with new credit institutions without guarantees and/or without increased bank guarantees.

 Timing 

In progress with a reduced commitment after the first two years of positive results.

 Results achieved 

  • Identification of priorities on which to act.
  • Optimization of the existing organization.
  • Definition of a “three-year business plan” and Budget.
  • Reduction of costs and revision of the pricelists.
  • Complete use of a managerial system by hiring a young resource dedicated to the activation/management of procedures.
  • Inclusion in the company of two key roles in the sales and technical departments.
  • Obtainment of new lines of credit and unsecured loans without the entrepreneur’s guarantees.
  • Revenue of 11 million Euros (+ 3 million) with growing marginality.