Knights Contractors, Windsor
Knights Contractors; an electrical contractor business to the commercial and institutional building construction industry. They cover the greater North Bay with services for over 30 years. They currently employ 30 full time individuals in four departments.
The company works with SBDC business advisor John DeGaetano. Upon their initial visit with their at the end of their year June / 2010 their gross sales were 4.6 million however was suffering, showing an 800,000 loss, significant cash flow situation and rising dept issues. With some pay cuts and potential lay offs, employee morale also appeared to be at a lower level.
Initial strategy included significant reduction vehicle lease agreements, create work flow efficiencies in all departments, cut salary increases for the year, consider new more effective computer estimating and reporting system at lower maintenance costs.
Next was to incorporate a relationship building policy in bringing the value of the company’s services to the customer, getting to know customers better and asking for the business, and referrals. Requested client to pull out remaining balance in line, to secure balance before loan review.
Later on in the year we discussed pricing structure with potential to adjust upward. As for history and record the client has had very little delinquent invoices in the past, an impressive condition in recent economic issues within the industry.
As of June 2011 client has renewed their line of credit, paid part of the balance down and has a receivable balance of over 1.3 million. Sales are approaching strategic our goal of 7 million however there are a few customers with invoices in dispute for various reasons on their side of the economic stress within the industry, a new kind of obstacle. Cost of doing business is at an all time low, and the business on paper is doing well. New obstacles such as cash flow arising from, growing pains, disputes and competitive pricing from outside contractors continue to be challenging.
11410 Old Redwood Hwy
Windsor, CA 95492-9523
Advisor: John DeGaetano