B supply
BEST PRACTICECASE 09
Business Turnaround Strategy for a Logistics Company
Amid a simultaneous cash flow crunch and deteriorating revenue structure, B supply provided end-to-end support, from redesigning the business model through to executing fundraising. Rather than simply keeping the business afloat, we supported the rebuilding of a management foundation aimed at renewed growth.
CHALLENGEChallenge
This seed-stage logistics company, in the process of expanding its business, was experiencing a simultaneous deterioration of its revenue structure and a cash flow crunch. Distortions had emerged in the very mechanism that generated revenue, while its cash flow situation allowed no delay, and the two problems were compounding each other. A one-off fundraising round or partial cost cuts alone would not solve the root cause; the situation called for a review that reached into the structure of the business model itself. At the same time, building governance was an unavoidable requirement for successfully raising funds. Turning the business around required the execution capability to move funding, revenue, and governance forward simultaneously.
APPROACHApproach
We first began redesigning the business model itself, the root cause of the deteriorating revenue structure. In parallel, to resolve the cash flow crunch, we directly supported the execution of fundraising. Because transparency in the management structure is also essential to earning the trust of capital providers, we worked on building governance as well. A defining feature of this engagement was addressing finance, business, and organization together as a single, integrated challenge rather than separately. Because we ourselves are principals who run businesses with our own capital, we provided support attuned to the on-the-ground urgency of a cash flow crunch.
IMPACTImpact
Fundraising was achieved, and the deteriorating revenue structure was rebuilt. Governance is now in place, and a management foundation for renewed growth has been established. With funding, revenue, and governance all rebuilt simultaneously, the company was able to continue operating and move into its next growth phase.
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