Profit Improvements

Majjag can help your business generate more profits.

·         Financial forecasts – know your cash growth levers and manage them thru predictive models

·         Revenue Strategy – navigate increasing volume, pricing, new product/channel launches

·         Cost Control – Understand true cost of your product and service and impacts of investments to run your business

·         Strategic Partnership – Align business objectives with financial strategies

CASE STUDY: How We Turned a $5M Manufacturer Around

The Crisis

The manufacturer's CEO was frustrated and confused.

Sales were up 5% year-over-year. The team was working harder than ever. The plant was running at capacity.

Yet somehow, the company had just posted a six-figure net loss.

"We're selling more than we ever have," he told us. "Where the hell is the money going?"

The Deep Dive

Majjag spent two weeks analyzing every transaction, every customer, every product line, every expense. What we found wasn't one big problem—it was death by a thousand cuts:

Pricing Hemorrhages:

• Inflation from tariffs, interest rates, and covid were not passed to the customer

Labor Inefficiencies:

• Overtime running at 18% of total labor cost (industry benchmark: 5-8%)

Inventory Bloat:

• Raw material over-purchasing to "save on shipping" and “have when sales pick up”

Investment Sprawl:

• R&D on 3 different product concepts (zero revenue yet)

• Marketing spend up 100% with no attribution or ROI tracking

The Diagnosis: "Even though cash receipts are flourishing, you can’t spend without restraints."

The 6-Month Turnaround Plan

Month 1-3: Stop the Bleeding ✓ Implemented appropriate safety stock levels with reorder points ✓ Reduced overtime with production efficiency gains ✓ Implemented ROI evaluation on R&D and marketing initiatives.

Month 4-6: Build the Foundation ✓ Quarterly BOM reviews with price intitiatives to pass inflations ✓ Weekly sales order and cash planning. Includes review of open AR and AP ✓ Established ROI dashboard for R&D and marketing projects.

The Results

Year 1 Comparison:

Revenue was actually down 8% in year 2, but gross profits were up 2%. and net income improved 200% or a 2x return on CFO services.

The Owner's Reaction

"For years, I thought our problem was that we weren't selling enough. Turns out, we had too many spend ideas without realizing their combined income on the business. Not all spend decisions were good ones.”

Majjag didn't just find the leaks. They helped us build the systems so we don't spring new leaks.

Best decision I've made for this business. Period."