CASE STUDY #2
The client:
A New Jersey-based junk and waste removal company with an inventory of dumpsters
The background:
This junk removal company has two main lines of services that it offers customers: (1) on-demand junk removal, where a customer contacts the company to have items removed from a home, office, or other location and then properly disposed of; and (2) dumpster rental, where a customer rents a dumpster for a period of time, and once full or no longer needed, relies on the company to remove the dumpster and dispose of its contents.
In the bookkeeping and accounting, this company did not break out the two services and thus did know if junk removal or dumpster rental was the more profitable part of the business, and did not have an understating of which division was the main driver of revenue.
The business owners engaged CFO on Demand when they felt their business had plateaued and there was not a clear solution to further grow the business.
The solution:
The CFO on Demand team worked with company management and analyzed the business and its books. By pulling apart the projects and associated numbers, it was decided where and how to invest in the company for the future.
The results:
The client company was able to confidently and strategically develop a business plan for the future to drive business growth, and determine which divisions warranted short- and long-term investment. The company made decisions as to how many dumpsters to have in its inventory for rental, as well as the size of the staff needed for junk removal. The result has been a 10% increase in revenue and a 15% boost in profitability.