Complete Strategic Pivot

Problem:

• An East Coast builder faced significant financial losses, having lost approximately $20 million in the previous two years and projected to lose another $10 million this year.
• Their complex business model included renting, renovating, and new construction across multiple states, but yet for all of this breadth they lacked profits.
• Despite having a highly qualified real estate CFO, their financial plans were unclear and didn’t withstand scrutiny from senior management.
• The need for additional capital to support a complete business model pivot was evident, but they struggled to create a compelling strategic plan for sophisticated investors.

Solution:

• They engaged my services, and within two weeks I had developed a solid, understandable strategic plan.
• We used Builder Navigator to analyze their current inventory, providing clarity on expected profit and cash flow.
• I then crafted a strategic plan that reinvested proceeds from liquidating existing inventory into new construction projects over time.
• The plan gradually scaled inventory and overhead, focusing on areas where they had a strategic advantage.
• The CEO and COO reviewed the plan, asking tough questions, and were pleased with its realism and digestibility.