So your business has grown really fast in the past 2-3 years and the company has increased it's sales by 200%. That's amazing results for any business. But over time the operational processes have become more complex to service the higher sales volume. As a result margins have decreased and are becoming to be thin. As stress settles in for the owners, and their equity partners, they begin to fear that the business they have built in the past 10 years is now struggling to manage cash flow.
This is common issue as companies take on too much business at once and in a few years time the business they worked so hard to build is now not as profitable as they once predicted. It's no surprise that large public companies these days are keeping a lot of cash on hand, or investing heavily in infrastructure, internal controls, and operational process improvements all the time. They do this to be prepared and support the future growth of the business. When sales jump or a new product or service is rolled out, they business infrastructure supports this growth.
Our partners at MP Group have a professional background from the big four consulting firms, and have experienced many instances where large public companies have implemented these strategies accordingly.
We feel that mid to large private enterprises need to learn and model aspects of their business to that of the multinationals. They could largely benefit from cash management, internal controls, and implementing operational processes in order to support the growth in business.