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Lost And Found!

INTRODUCTION

XYZ PVT LTD, an Education Services company, is in the business of coaching aspirants of Competitive Examinations. It has more than 50 centers across India via COCO & COFO models.

BUSINESS CONCERNS

The Company was in operation since four years. They had been investing in operations all these years with no book profits in any year. The management was unable to judge how the money invested in the Company was easily lost in operations and at the end of the year, they were left with no profits to plough back into the Company. Instead, they had to invest more each passing year.

Major Concerns Identified

Lost and Found iCFO

SOLUTION

Our First response was to restructure the organization by Cost Centers and record each expense into relevant categories. We then built the Profit & Loss account of each Cost Center and assessed each Cost category, by classification into ‘Redundant’, ‘Elastic’ & ‘Inelastic’.

We built Pricing Models for each product/Service of the Company and compared with Competitor pricing to arrive at Parameters which can be improved. This process was iterated until we saw the signs of first profits at the end of the year.

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KEY RESULTS

Negative Margins turned into Positive Margins
Clear Visibility on Financial Health of the Company
Monthly Budget allocated, monitored and controlled to maintain desired margins
5 year P&L guidance available for the Co. to follow
Easy, Timely and Accurately available MIS Reporting System
Better Cash Management over time
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