Going Global In a Cash Crunch
THE CHALLENGE
A cash crunch can happen to a company when it least expects it. For Transpo Group, business was booming as it expanded internationally. Still, the transportation consulting and planning company was strapped for cash as it struggled to understand how to fund its rapid growth. “Our biggest challenge was growing faster than we could mobilize people,” explains Bruce Haldors, Transpo’s CEO. “It’s a people business, and we are selling services. When you bring someone on, there is a six-month cycle before you start to see cash flow.” Adding to that, Transpo had split its business into two different corporate structures as it continued to expand—one in the U.S. and one in the U.A.E. This made it increasingly difficult to move cash and for Haldors to explain his company’s financial situation to the bank.
THE TURNING POINT
About four years ago, Haldors turned to the experts at Turning Point Consulting who helped them set up a plan to proactively manage cash. By looking behind and ahead in 16-week periods, Transpo could forecast future positions and better understand the relationship between growth and the company’s bottom line. “[Turning Point] offered barometers on growth and helped with strategic aspects: how to best manage the accounts receivable, billing collection, reporting, and forecasting,” Haldors says. More than anything, Haldors was impressed with the time and energy the Turning Point team put in to get down to the details and form close relationships with members of his company. “They really want to learn more about our business, not just from an accounting standpoint,” Haldors says. “They did a really good job explaining to the bank the things going on in our businesses and simplifying it from a financial standpoint.”
THE L ASTING RESULTS
Today, Transpo’s international business has continued to grow with 160 employees worldwide and entities in Abu Dhabi, Dubai, and Riyadh, Saudi Arabia. Haldors and his team still work with Turning Point on a regular basis for CFO consulting, tax planning, and other strategic needs as they continue to broaden their own gained perspective. “They have given us a solid foundation to build from,” Haldors says. Through instituting a cash flow plan, building strong relationships with the client and its lender, and providing tactical guidance, Turning Point set Transportation up for continued growth around the world.
