Truck Manufacturing Company (TMC)
Specialty trucks can be a very lucrative business but are not without risks particularly in the start up phase because of the substantial fixed cost.
TMC, a specialty truck manufacturer with just over $1.2 million in revenue, wanted to take it business to the next level. To achieve this, the company would need to obtain additional funding. The company was strong in sales and manufacturing but lacked strong financial management.
Why Goff Associates, Inc. (GAI)?
GAI has substantial experience installing internal controls, accounting systems, management reporting, developing business plans, and raising capital.
In an effort to determine TMC’s readiness to obtain additional capital, GAI did a quick assessment of the company’s financial processes and determined that its internal controls were inadequate, actual results were not integrated into its business plan system resulting in flawed forecasts, and cost tracking was not at sufficient detail to determine what needed to be improved or project the future impact of changes in costs.
GAI immediately established internal controls within the company and began implementing an accounting system. The system was fully integrated from a customer order to the sale of the vehicle. When the order was placed, the system tracked the order against inventory to determine what needed. This resulted in faster production of the vehicles and reduced expedited ordering cost. The system also gave management a greater understanding of the cost of building each unit. This allowed the company to price more aggressively with greater assurance which resulted in increased orders and faster delivery times. GAI also assisted the company in obtaining an SBA loan and developed an action plan for a Regulation “D” filing.