Case 1: Projections and Feasibility Analysis Prevents Financial Catastrophe
Situation:
Covenant Consulting Group acquired a new client who was planning to launch a large business venture. They left their prior consulting and accounting firm after they became frustrated with the guidance they were receiving regarding their twenty million dollar project. They were not satisfied with their previous firm’s level of involvement or their seemingly complacent service style.
Services:
Covenant Consulting Group took over the account and created a business plan with projections and feasibility analyses. At the outset of the engagement, the client had already priced each of their services, estimated the profitability of each, and developed plans to push their most profitable services. Covenant Consulting Group built a dynamic financial model that allowed the client to determine the actual profitability by service and make better business decisions.
Results:
After thoroughly examining the profitability projections, Covenant Consulting Group alerted the client that their anticipated core service was actually a risk for loss. The results of the pricing model resulted in a complete overhaul of their pre-existing pricing structure. Through the counsel of Covenant Consulting Group, a revised business plan was completed and the client avoided a financial catastrophe.