Consult Goldberg: Advanced Business Consulting

The Company

A 10 year-old graphics service company.

The Problem

According to the company owner, Goldberg was being engaged to arrange additional financing because of a temporary cash shortage. The situation was not so temporary: the Internal Revenue Service was about to close the business and prosecute the owner for failing to make tax withholding payments. Other payables were also seriously in arrears, and the owner frequently made arbitrary promises of payments to creditors without having any idea if he could keep them. He was considering a factoring arrangement to deal with the cash flow deficit.

The Solution

Goldberg developed a weekly cash plan that provided accurate information on cash needs and availability several weeks in advance. With accurate cash flow information, Goldberg was able to make realistic arrangements with creditors, including the IRS. Goldberg also provided the company with customized software that automatically calculated the cost and profitability of each proposed job. Additionally, Goldberg arranged a meeting for company officers with the company's largest potential customer and participated in the meeting.

The Result

The company achieved a stable and positive cash flow, eliminating the need for the expensive and potentially disastrous factoring agreement. Creditors and the Internal Revenue Service were dealt with according to the agreements, and the company's credit was not damaged with major vendors. Additional funding was not required.

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