Strategic & Management Consulting
American Business Advisors (ABA) is the leading business consulting firm specializing in Building Cash Cows® and Improving Quality of Life® services for mid-size and small companies, ohana businesses, and their owners.
A cash cow is a business generating steady, dependable cash flow, enabling it to:
- Fund growth and development
- Become a market servant-leader
- Provide discretionary cash flow to owners
- Determine a predictable business value
Helping business leaders live a balanced life with time for:
- Personal interests
- Community and philanthropic involvements
Focus on Your Target
Services designed to assist your ohana business with the unique challenges of effectively working together, creating ohana counsels, leadership and ownership transition, succession planning, understanding your ohana system, and building a legacy business.
Develop valuable marketing plans and understand effective marketing.Increase sales productivity and dollars through cost-effective, results-oriented marketing. Sales training and development programs focus on equipping teams with powerful sales skills and methods.
Financial coaching and outsourced CFO services to improve financial management, understand your numbers from a business perspective, and obtain the financing you need to accomplish your objectives.
Meet the Team
American Business Advisors Hawaii is committed to helping business owners create Cash Cows that serve the owners and their ohana. Creating a Cash Cow business allows owners to Improve Quality of Life and give back.
Check out a few of the organizations our Hawaii team supports.
Situation – In 2005, a manufacturing company was Colorado’s industry leader. However, they became very concerned about losing business to new competitors in China. Additionally, other U.S. companies were making plans to establish facilities in Colorado and achieve a significant market share.
Action – This manufacturing company engaged American Business Advisors to establish a Formal Strategic Business Plan, which included a Competitive Positioning PlanTM. The objective was to defend the company’s share of the market and allow the business to thrive and grow to the next level.
Result – Today this Colorado manufacturing company is top in their industry. They are the “800 pound gorilla.” Their competitors openly tell them it is nearly impossible to get customers away from them! Since 2005, they have worked with their customers and now treasure a 44% market share. They have grown 67% and their Net Income Before Taxes has increased 73%. They have been profitable every year since 2005, including during the recession years following the 2008 mortgage crisis, the 2nd worst in U.S. history. They are known across the nation for their innovation, technical abilities, and outstanding success. They are frequently asked to speak at seminars and workshops across the country.
“Our profits and compensation have increased substantially and are dependable. Before hiring ABA, we were working 60-70 hours per week.” – Owners
Situation – This three-year-old engineering firm was founded by a division manager of a large engineering firm and was joined by three key engineers. There reputation gave them instant credibility and the company took off like a rocket. Although making money the first year, they lost money the second year and profitability when hiring ABA in the third year was weak. Cash-flow was tight and their bank was concerned so they recommended the company talk to American Business Advisors. A needs assessment determined the owner wanted to 1) Build infrastructure to support growth, 2) Find people to fulfill needed roles, 3) Double the revenue of the firm, 4) Locate new marketing opportunities, and 5) Increase cash flow.
Action – ABA performed a series of Developmental ConsultingTM services to accomplish the company’s objectives, including:
- Performing a Strategic Financial Analysis of the company and recommend how to increase profits and cash flow.
- Developing a Strategic Financial Forecast of their profits, cash flow, and capital requirements and create a plan to get them into the top 25% of the industry
- Developing a Marketing Plan and Implementation Plan
- Creating a performance compensation plan
- Assessing current practices, processes, and systems, document them and define solutions for reengineering them
- Recommending new software
- Creating an organization design to take them to the next level.
- Providing an outsourced Chief Operating Officer
- Developing a formal Strategic Business Plan
- Developing five year exit strategies to accomplish the owner and wife’s personal objectives
Result – At the end of the first year the company’s revenue increased 29% and Net Income before Taxes increased $292,000 over the prior year. At the end of the second year revenue increased 57% over the prior year and Net Income before Taxes increased $563,000 over the base year. Systems were redesigned and new software installed so the management team could track jobs and determine profitability on them. The bank increased their line of credit. In year three they rested their line of credit for six months and increased it again to prepare for a backlog of new contracts that will create significant growth next year. They also established an effective management team. The company’s Current Ratio is 7.8 to 1 and their Debt-to-Equity Ratio is .2 to 1. Net Income before Taxes this year is tracking to end the year again at about $550,000 over the base year. Currently, the company is realistically projecting at 46% increase in Revenue next year and a Net Income before Taxes of 13.8%.
Situation – As the leading structural floor contractor in the local home building market, this company held more than a 40% market share and enjoyed an outstanding reputation for product excellence and exceptional customer service. Although experiencing 48% compounded growth over the last three years, the company’s financial performance ranked in the bottom 25% of the industry. The owner was not reading the financial statements because “they were not reliable.” The founder and CEO hired ABA to increase profits and cash flow, establish a sound financial structure, improve financial statement reliability and timeliness, establish a formal business plan, and develop an organizational structure that is self-sustaining.
Action – ABA performed a series of Developmental Consulting™ services to accomplish AFC’s objectives, including:
- Preparing a Strategic Financial Forecast of profits, cash flow, and capital requirements
- Determining the right financial structure and ideal size
- Helping reduce costs and setting financial goals and performance measures
- Getting financial statements current and reliable
- Coaching on how to use financial statements for decision making
- Obtaining new bank financing at greatly reduced cost
- Developing Strategic Business Plan
- Facilitating the creation of a Business Action Plan
- Providing management training and development of the Executive Team
Result – Financial statements became current and reliable within the first three months of working with ABA, and the owner was able to use the statements to manage the business. Profits increased about $60,000 per month and AFC ended the year with increased profit and owners’ compensation of $748,000. Their Debt to Equity ratio went from 7.8:1 to 1.2:1. Their Current Ratio went from 1.1:1 to 2:1. The bank doubled AFC’s line of credit. In spite of a significant downturn in the home building industry in year two, AFC again increased profits and owners’ compensation by $577,000. The owner and his wife contributed $176,000 to charities, and they are now spending two days per week at their mountain home.
“The way you are able to mix new insights and strategies into our plans and strategies without significantly changing how we do business is very powerful and helpful. In short, I am absolutely happy with ABA and would tell other business owners that even though ABA may not know your particular business, they know the ‘business of being in business’ very well and can advise you in such a way as to greatly improve your financial performance and get you set up to ‘drive the bus’ to your desired destination.”
Founder and CEO
FROM THE ABA JOURNAL
American Business Advisors provides solutions for the issues you face as you proceed through turbulent waters while managing people, money, markets, and processes. We provide management solutions as well as strategic solutions. Our systems are time-tested and statistically proven, and we guarantee them. If you’re looking not only to take your business to the next level, but also to live a more balanced life and devote more time to the people and causes that matter, we would be honored to strategically partner with you.