Jonathan H. Lack - Plan to Turn Your Company Around in 90 Days: How to Restore Positive Cash Flow and Profitability

About the Author

Jonathan H. Lack is principal of ROI Ventures, LLC, which specializes in strategic planning and company turnarounds. He has more than 20 years of experience in operations management and strategic planning, focusing primarily on consumer product, manufacturing, and services companies. He has experience across all company sizesstartups, midsize, and Fortune 500and in a number of industries, including financial services, food and beverage, information services, health care, financial/Internet, manufacturing, and telecom. Lack served as Director of Alternative Investments for Galapagos Partners, LP, a MultiFamily Office in which he currently advises on special projects. He was part of the founding executive management of CompuBank, NA, the first Internet bank to receive a charter from the U.S. Treasury Office of the Comptroller of the Currency (OCC). Lack led the bank to achieving one of the industrys fastest growth rates, and he developed brand recognition and customer confidence that earned it the #1 Online Bank ranking by Smart Money magazine. Lack has helped raise more than $36 million in angel, institutional, corporate, and private-equity funding in four separate deals. He holds an MBA from Wharton, an MA from John Hopkins University School of Advanced International Studies (SAIS), and a BA in Middle East Studies from the University of California.

Acknowledgments

I want to thank a number of people for whom this book would not be possible, starting with Apresss Jeff Olson, who encouraged me to write the book, and Rita Fernando and her team of editors who did a fantastic job of cleaning up my grammar and pushing me to clarify my thoughts. A special note of appreciation goes out to my former SAIS classmate, consulting partner, and good friend Keith Bickel, PhD, who was my sounding board on a biweekly basis throughout the past year. I thank my Wharton buddies Charles Boyd, Wael Salam, and Michael Varner, and my CompuBank colleagues and friends Bill Krull and Terry Puster, who have been great confidants and supporters in good times and bad throughout my business career and personal life. A special thanks goes to my brother Stephen Lack, who has not only been a great sibling, but also a good friend, client, and mentor. In addition, I thank my sister Sharon Stein, brother-in-law Ross Stein, and consultant Nicholas Martinez for their support in helping me get to the finish line and complete this book. Last, I thank my son Noah for his support during this past year and for allowing me to work on the book during his many basketball practices.

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Available at www.apress.com

APPENDIX
A

Sample Consulting Proposal

June 4, 2013

Mr. Jones, CEO

Newco Security

123 Main Street, Suite 456

Houston, TX 77025

Dear Mr. Jones,

ROI is pleased to present Newco Security with its proposal to provide advisory services to develop Newco Securitys strategic operational plan to put it back on the path to revenue growth.

The planning effort is structured in two phases, with specific areas of focus as laid out in the attached proposal detail. During phase 1, ROI will conduct an internal and external assessment from which the strategic operational plan will be developed. On adoption of the plan, ROI, during phase 2, will assist in developing a strategy to help find investors to fund the next stage of growth for Newco Security and to help with the implementation of the strategic plan. ROI agrees to complete the effort required to conduct phase 1 within a four- to six-week period, commencing on signing the attached agreement, accompanied by the first installment of agreed-on fees.

ROI is ready to begin work on phase I immediately and looks forwards to working with Newco Securitys management to improve and increase its revenues.

Sincerely,

Jonathan Lack, Principal

ROI Ventures, LLC

Background

Newco Security has reached a stall point in its market growth such that it is seeking to raise $10 million to $15 million. To do so, it needs an interim infusion of $500k to $750k to be able to meet is current payable obligations to ensure ongoing production, secure its operational base, and achieve higher gross profit margins. It also needs to develop and put into operation a disciplined strategic operational plan to identify critical growth opportunities in the security market and resume a growth path. This operational plan will be based on a clearly articulated internal and market audit so that the firms direction becomes less susceptible to personality or relationship-based distractions. On review of the plan by management and subsequent adoption, Newco Security will be able to provide a coherent rationale and a disciplined growth strategy to investors during the larger investment round of phase 2.

Activities for Phase 1

ROI is prepared to commit its principal to a full-out sprint for four to six weeks to support the following activities.

Internal Operational Assessment/Audit

ROI will execute confidential interviews with key staff members (including the chief executive officer and key board members) to assess internal perspectives on the following nonexclusive list of issues: the company's strengths and weaknesses, areas for corporate improvement, perceptions on where key staff members think the company can improve, perception of how decisions are made, and overall employee morale. In conjunction with the interview effort, ROI will undertake a review of all major internal documents, including existing strategic plans, financials, and marketing and sales plans. ROI expects this activity to require an onsite visit for several days.