Schooley Mitchell’s Robyn Bowles was recently featured on David Macon and Eric Whitmoyer’s podcast – My Biz Coaches. In this episode, Eric, David and Robyn discuss Cost Consciousness. Key points include:
• Determine where to focus cost management efforts.
• Do your research and due diligence when making purchasing decisions.
• Prioritize solutions that increase flexibility and choice.
• Stay up to day with technological advances in your industry.
Schooley Mitchell’s Robyn Bowles was recently featured on Steve Ramona’s podcast – Doing Business with a Servant’s Heart. Robyn explains how she became her own boss after feeling burnt out in her previous role. She shares her business model of providing cost reduction solutions to companies, without charging any upfront fees, and talks about becoming a representative for businesses in the telecom industry. Robyn emphasizes the importance of networking and building relationships, which results in positive outcomes for businesses amid a complex and ever-changing telecom environment.
We would all agree that one of the main benefits of a merger or acquisition activity is the economies of scale that can lead to increased profitability and competitiveness.
The area that often gets the most attention in the quest for economies of scale is reduced headcount. In the newly formed business, there will often be a duplication of effort that will need to be addressed…2 CEO’s, 2 VP’s of Sales, 2 COO’s etc. Personnel expenses, such as salaries and employee health benefit costs are often the greatest expense for any business.  Â
But don’t forget about the economies of scale for the indirect costs. When trying to bring together the various indirect costs for both organizations, you will probably have vendors with differing:
How do we best capture the new economies of scale with these indirect costs?
How do you decide which of the current vendors to utilize for the new organization? Â
What if neither of the current vendors is the best option for a now larger and more complex business? Â
By utilizing an outside resource like Schooley Mitchell, you can remove the subjectivity of both “parties” from the decision-making process and find a solution that takes into account all the factors noted above.
For business owners looking to exit, there are a number of ways to increase the valuation of their company. But many of the options involve additional resources (such as hiring additional salespeople) and thus, increased costs.
One way to increase business valuations that is not only cost-free, but more sustainable in nature is to reduce expenses. Most businesses spend more than they should on their various business expenses – up to 35% more and finding savings on these expenses directly helps the bottom line.
At Schooley Mitchell, we offer a risk-free analysis that results in an average savings of 26-28% with very little upfront time investment. We consult to common business expenses, such as: telecom, merchant services, shipping, packaging supplies, waste, facility supplies, office supplies, uniforms and linens, fuel, e-Signature, etc.
Reach out and schedule a time to discuss!
Schooley Mitchell’s Robyn Bowles’ teamed up with Juliet Peters of Framework Legal to produce a blog about analyzing expenses and getting your financials in shape to sell.
Are you preparing your business for sale and aiming to maximize its value? A critical step often overlooked is the proper management of expenses to enhance your profit and loss statement. It’s a common pain point, seeing businesses sell for less than they’re worth due to misaligned expenses affecting the sale multiple.
We’ve collaborated with Robyn Bowles from the Chandler Office of Schooley Mitchell, bringing you invaluable insights on cost reduction strategies that can position your business for the profitability it truly deserves. Our latest Q&A blog provides a deep dive into effective business optimization processes backed by Robyn’s extensive knowledge and expertise.
Don’t miss the opportunity to learn how to keep your business’s financial house in order, ensuring you gain the maximum value from your sale. Read our joint blog here:
In this episode, William and Jordan Dunin have a conversation about his company, HatchPath. helps you find the right coach for your goals—whether that’s improving your health, reducing stress, building leadership skills, or navigating life transitions. Tcoaches are experts across a wide range of specialties, from nutrition and fitness to mindfulness, career development, and even advanced modalities like hypnotherapy and bioresonance healing.
In this episode, William and Annette Arsenault have a conversation about her company, Getting Healthy on Purpose. They help clients with programs for those that are looking for better quality of life, to deal with those aches and pains and all the things that come along with aging. They assist with diabetes, weight, diet, and getting healthier one good habit at a time!
If a client is considering a cost reduction effort in preparation for an M&A event, make sure they understand the different approaches.
Not All Cost Reduction Efforts are Built the Same!
Some businesses engage with Big Consulting to conduct “cost studies” in an effort to reduce expenses. At Schooley Mitchell, we take a very different approach to reducing your expenses.Â
Ask the following questions for a better understanding of the differences.
How are you Paid?
➡️ Schooley Mitchell is paid on a contingent basis from the savings we generate.Is there any upfront retainer?
➡️ Schooley Mitchell has no upfront retainer and performs the analysis on a cost-free basis.Is there any guarantee of results?
➡️ Schooley Mitchell only gets paid when we reduce your expenses.Do you have specialized expertise in my expenses?
➡️ Schooley Mitchell has analysts with specialized technical expertise in your specific cost areas.Who implements your cost reduction recommendations?
➡️ Schooley Mitchell project manages/leads the implementation of the recommendations that you accept.
Is there any ongoing support?
➡️ Schooley Mitchell provides ongoing support through the term of the Service Agreement.Are your cost reduction recommendations specific to my business?
➡️ Schooley Mitchell develops recommendations tailored to your specific business, cost areas and vendors.
What is the focus of your cost reduction recommendations? Process changes? New technology?
➡️ Schooley Mitchell is laser-focused on your specific cost areas and vendors.
You’ve spent months working with a number of financial and business advisors and you have finally completed the purchase of a new business.
You begin to assess the current state of the business on a more detailed level, trying to find ways to increase your overall profit. You will review things like the current product offering/pricing, marketing plans, sales team, etc.Â
How do you know if previous ownership optimized their expenses? How do you know if previous ownership kept vendors out of a sense of loyalty or because they had always done things a certain way?
In my experience, many business owners stay with their current vendors because of a sense of loyalty. Over time they have formed professional and sometimes personal relationships with their vendor sales reps. They will say that the vendor has “always been good to them” and this familiarity can breed complacency when it comes to cost.
Another reason that many business owners stay with their current vendors is an aversion to change. There is a fear of trying something new and different, even if it would benefit the business.
Here are some real-life quotes that I have heard when talking to business owners about vendors:
“I have been using the same vendor and sales rep for almost 20 years; I have never really thought about making a change”.
“Patty has been handling our purchasing for over 10 years. I am sure that Patty is doing a good job and I don’t want to upset the apple cart.”
“My brother-in-law works for our vendor and I cannot really make a change without causing family issues.”
“My employee told me that there is no other vendor that can do what our current vendor does for us”.
A vendor audit is great way to know if your business expenses are optimized, as it will answer the following questions for each cost area that is reviewed:
• What is the current cost structure and how does it compare to the marketplace?
• Are there any billing issues or errors that have been missed or ignored?
• Are there products or services that are being paid for but are redundant or simply not being used?
• Are there any process or procedural changes that would help reduce your business expenses?
Why not take a fresh look at the vendors being used in your new business?
With Schooley Mitchell, vendor audits are always risk and cost-free.
If you would like to talk about a vendor audit, please reach out to me at [email protected].
