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Solveiga Karele, SIA Grenardi board member

"Our turnover is significantly affected by seasonal fluctuations. The cash flow plan developed by AG Capital helps us to balance incomes with payments as well as optimally plan purchases."

 


Solutions

Find out how to solve this problem:

"We are always in debt and are late paying our bills." Solution...

Services

 

Our company's primary goal -  to help our customers solve all finance related problems.

 

AG Capital – problems we help to solve

Company: Bakery/confectionery manufacturer (actually 4 of them – it is a must-have product for manufacturing industry)

Question/problem: We have one dominant retailer that takes about 60% of our sales. The buyer was already given the lowest prices but was still asking for special prices in order to launch a sale campaign (to give at least 30% discount). How low can we go?

Solution by AG Capital ⇒ Full cost calculations. We create calculations that allow to model the lowest possible price, depending on the volume of sales (as fixed costs per unit decrease with volume).


Company: Cargo airline

Question/problem: We have just received a notice from our client that the client will stop using our services for the most profitable flight in the portfolio of the airline. We need to understand the effect on our financial results. How large the losses will be and what could we do to at least break-even.

Solution by AG Capital Budget projections. The company’s budgeting model allows to automatically model the financial results after flight cancellations, taking into account also the decrease of variable costs.


Company: Jewelry retailer

Question/problem: We have seasonal peak of sales in December but we need to buy goods in September. How much can we afford to buy?

Solution by AG Capital Short-term cashflow projections. Our findings showed that the company cannot afford to execute the purchase program they initially created as it would lead to a severe lack of cash in October-November. The solution the company has chosen was to shift purchases towards the suppliers that give more generous payments terms. Another solution would have been attraction of short-term financing.


Company: Restaurant

Question/problem: We plan to open a high-level restaurant at an exclusive location. What pricing/occupancy rate combinations are needed to break-even?

Solution by AG Capital ROI calculations. We have created a template that allowed to model sales, markups, staffing and salaries, investment, occupancy rates, fixed costs and other KPIs.


Company: Social media

Question/problem: We are a start-up company that has prepared its business plan 9 months ago and has made a lot of changes to it since then. Now the business plan financials don’t match the text of the business plan anymore.

Solution by AG Capital Business plan financials. We have adjusted the business plan financials to the current situation, at the same time giving useful recommendations on the ways to improve the business plan itself.


Company: Night club

Question/problem: We need to understand the efficiency of our operations. What could we improve in our operations?

Solution by AG Capital Monthly sales analysis. We provided the company with a monthly presentation that included info on the bestselling drinks, drinks with lowest markups, worst bartenders in terms of sales per shift, sales dynamics per hour, and a lot of other KPIs.


Company: Veterinary  product wholesaler

Question/problem: Are we efficient in terms of sales, markups and inventory?

Solution by AG Capital Monthly sales analysis. We provided the company with a monthly presentation that included info on the bestselling products, products with the highest/lowest markups, products with best/worst inventory turnover, and a lot of other KPIs. The client has realized that the best-selling products had the worst markups and has changed priorities for sales personnel. They have immediately improved their gross profit by ~25%.


Company: Furniture wholesaler - startup

Question/problem: We plan to open a new furniture wholesale business in France and need to understand the breakeven level of sales

Solution by AG Capital ROI projections and automatic calculations of the break-even scenario.


Company: Wholesaler

Question/problem: We have a lot of shipping orders that are funded by different investors. The cashflows from the shipping orders have mixed and we have lost control on where is each investor’s money and how much do we have our own funds.

Solution by AG Capital Cashflow breakdown by orders. We have additionally found that the volume of the business was not enough to cover fixed costs, so the company actually was covering its losses from new investor money without noticing it.


Company: Airline

Question/problem: Are all of our aircrafts profitable? Don’t we spend on maintenance of some aircrafts more than they generate from operations?

Solution by AG Capital Income/cost division by aircrafts. It turned out that the company had one aircraft that was too costly to maintain and it was eating up some 20-30% of the company’s profits.


Company: Construction material wholesaler - startup

Question/problem: We plan to open a new wholesale business and need to understand the breakeven combination of sales/markups

Solution by AG Capital ROI projections and automatic calculations of the break-even scenario.


Company: Retail

Question/problem: We need to understand whether all of our shops are profitable.

Solution by AG Capital Monthly shop profitability calculations.


Company: Logging

Question/problem: We need to understand what is more benefitial for us – to provide outsourced logging services or to buy land plots with wood, cut it and sell on the market. What is the price we can afford to pay for the land plots?

Solution by AG Capital Budget projections with ROI calculations.


Company: Dairy, Construction, Gadget wholesale/retail (3 different companies – same problem)

Question/problem: Our manufacturing/sales personnel does not seem to be motivated by flat salaries. Can we afford a motivating salary system and what shall its parameters be?

Solution by AG Capital Budget projections with salary system creation. We have managed to create motivating salary systems that align incentives of the company and its employees, at the same time ensuring that there shall be no negative effect on the overall results of the companies.


Company: Construction

Question/problem: Do we make profit from every construction project we undertake? Have we managed to keep actual costs within the planned estimates for each project?

Solution by AG Capital Site profitability analysis. We have created a comprehensive model for the company that allows to control all the cost aspects for each project. The model also advises on the actual level of overhead costs that need to be included into the cost estimates for the clients.


Company: Manufacturing (on a per-project basis)

Question/problem: For every client we give cost estimates. We are good at estimating variable costs but what % shall we apply as the overhead costs?

Solution by AG Capital Budget plan and performance analysis. Our analysis has also shown that the company was putting too little overhead %, thus losing money on most of their orders and didn’t even notice that, as the overall results were good thanks to just a few very profitable deals.


Company: Freight car service

Question/problem: What is the full cost of one service hour for our company? How much shall we charge our clients?

Solution by AG Capital Budget plan and service hour full cost analysis.


Company: Dairy, Bakery, Manufacturing (on a per-project basis)

Question/problem: We have a lot of clients with different prices and payment conditions. Do we make money from all of them?

Solution by AG Capital Sales channel profitability analysis.