Business Concept to Successful Start-up
Dig-This
Ed Mumm, Owner, of Dig This came to the Monterey bay Consulting Group with a vision of a business where people could enjoy a day as the operator of large construction equipment: excavators, bulldozers, loaders, etc. The background for the idea was Ed’s experience building his home where he got to use all these various machines to clear his building lot, and access drive, dig the foundation and dress the finished project. Having enjoyed the feeling of power and excitement from using the equipment, he was confident that others would have just as much fun as he.
The challenges that Ed presented were several. Not only was this concept unique in the specifics of its character, but Ed knew he would need additional financial support to make it happen. Our task was to: research the efficacy of a business model appropriate to Ed’s concept, evaluate its market viability, and develop a business plan including revenue and expense forecasts sufficient to guide the business through its startup and early evolution. Finally, we needed to prepare a presentation to investors that would provide confidence in the potential success of the project. Some of the particular unknowns included, balancing a reasonable customer fee with the enormous cost of the heavy equipment whether owned or rented, and estimating the demand for such an experience with few comparable alternatives in the marketplace.
The business plan did come together. It proved adequate to attract the needed seed capital. Dig This launched operations in 2007-2008. Later Ed re-located the operation from Steamboat Springs, CO to Las Vegas. Ten years later, Dig This is a viable company providing great experiences to a wide audience. Now, Dig This is being licensed and expanded to additional locations in the US and abroad. We are proud to have been a small part of bringing this enterprise to fruition.
Rapid Growth Management with Profitability Turn Around
Yakima Products
No doubt you have seen these multi-sport bike, ski, boat racks on cars everywhere you go. The company, Yakima Products was founded in a collection of inventions by Otto Lagervall in Yakima, Washington and in 1979 purchased by a team of young whitewater boating enthusiasts in Arcata, California. Combining passion, enthusiasm, sacrifice, hard work, and long hours, this team was able to show repeated growth of 100% each year. Five years later, the company had reached $1 million in sales, but was losing money almost as fast as it would come in. To keep things afloat and improve on their car top carrier, an outside investment group had joined the company. With the support of these outside investors, the Monterey bay Consulting Group came to the project with two responsibilities, make the company profitable and facilitate whatever rate of revenue growth was reasonably possible. The revenues continued to grow year after year reaching $22 million in 1990. During this time MbCG served as the COO of the company in a full-time role. We helped the company to work its way through this rapid and sustained growth, and reversed the persistent losses into a substantial profitability. The company was also positioned as a viable acquisition candidate, ultimately changing owners several time over the past 25+ years.
Early stage Company Growth and Development
Mosaic Cycles
Hallmark of the services of the Monterey bay Consulting Group is our General Management Assistance. This is a long term relationship with a client company assisting in all areas of general management to help the company to reach its intended goals. Mosaic is just such a client experience. Established in 2009, Mosaic Cycles handcrafts custom bicycle frames of titanium and steel. At its inception the company was its owner, Aaron Barcheck, an experienced frame builder with a vision to create the very best bicycles that could be built. Custom handcrafted bicycles, not just fabricated with meticulous attention to detail, but built to the unique riding needs and preferences of its rider/owner. The early experience of Mosaic supported healthy growth and maturity as a viable company. When MbCG entered this project in 2013, growth was continuing at a strong pace, and expansion demands were presenting decisions that were difficult to either keep up with, or to have confidence in making. On behalf of Mosaic, we initiated several levels of planning supported with weekly management meetings intended to keep the company on track to achieve the goals they were setting for the company. During the time we have worked with the company;
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- unit sales and revenues have grown,
- the company has considered and rejected an investment offer,
- hired additional employees, experienced modest employee turnover,
- relocated operations to a larger facility
- strengthened and expanded its distribution through a select team of retail dealers both domestic and foreign,
- Secured additional banking and investment support to its growth plans, and
- most recently acquired a company providing captive painting of bicycle frames.
Ownership/Management Replacement
Office Interiors & Design
Contacted by Geoff & Sara Downes we were initially asked to evaluate an opportunity for this couple to purchase a 20 year old contract office furniture dealership owned by Sara’s mother and her business partners of these 20 years. The evaluation suggested this purchase would be an excellent opportunity for these new owners. Once the agreements were reached Sara and Geoff moved from California to Nebraska to take up this new challenge. While they would have the assistance and guidance of the prior owners, Geoff felt it would be useful to have some outside assistance in establishing their new roles and accelerate their understanding of how to be successful in this business. The Monterey bay Consulting Group provided a detailed examination of the company history, and helped to set out operating plans to support an orderly evolution of the management roles. During the time of our assistance, we helped to develop marketing and sales strategies, provided staff interviews to strengthen operations, and assisted in staff expansion, and opening of a satellite office.
