[Wmcmanus]

Quote:

Originally Posted by immtbiker /img/forum/go_quote.gif Sort of like Bob and Bob on "Office Space"?

I was actually going to say that! Except it was just me, and I didn't have to stick around to deliver the news or even hear back in terms of what they had decided to do. Just show up, observe, ask questions, learn the ins and outs of their systems relative to what was expected by the group, consult with mid and upper management, and write a report with recommendations. It was a beautiful thing, in that I wasn't ever held accountable since I had no authority whatsoever in terms of implementation.

The only thing that sucked about it (big time) was that the Cayman office billed the other offices for "their" services (although it was always just me), and I'd either see it or not see it at bonus time. When I didn't see enough, I left. Nice. You get to be universally hated throughout the group, and yet are still not properly rewarded for putting a target on your back. It's funny, because when you're put in this position, you start to feel pretty smart. At least until you have a chance to stand back and think carefully about what just happened! Then you feel used because they got what they wanted and didn't have to pay for it other than via internal transfers, which is just paper shuffling.

But I'm sure Tyll's guy was smart enough to get paid properly for his services.

 

[Edwood]

 

[Tyll Hertsens]

Eventually the report comes back:

The Good:

1. HeadRoom has an amazingly strong position in its market.
2. All payables, customer refunds, bank loans are current.
3. Website traffic is stellar.
4. Product is excellent and doesn't come back broke.

The Bad

1. Payroll is too big.
2. Manufacturing isn't efficient enough.
3. Too much inventory, not enough cash in the bank.
4. Not enough growth into broader markets

The Ugly

1. Sales are 30% down, without much hope for an upturn.
2. The company is far from sustainable with those numbers.

The good part about being the boss is you get to take credit for the successes, the bad part is you also get the credit for the failings.

...sigh...

So let's talk for a second: I'm pretty good at the marketing and product developement stuff. I've got a good head for people and how theey think, and I've got good, broad technical chops so I knoe what will work and what's possible to develop at a given level of resource availability. But I don't really know diddly when it comes to contribution margins, debt to equity ratios, and pinching pennies. When someone knows what to look for, in a company, my skills---and lack thereof---are apparent.

...sigh...

All that bad stuff really wasn't that bad though. For example the first 6 months of 2007 we made 3% net profit. We worked very hard on internal efficiencies and the first six months of 2008 we made 6% profit, which is decent, but then there's that ugly stuff.

By the time we got to the end of 2008 any moneys made in the first half was gone by years end. I don't have to tell you bad the economy is at the moment, the situation was as serious as it gets with a company before a complete implosion into bankruptcy, liquidation, or just death.

Time for a board meeting and some tough decisions.

.... sigh ....

Wonder what's going to happen? Here at HeadRoom we all wondered what's going to happen.

 

[kboe]

Our hopes and Prayers are with Headroom and all companies going through this, hang in there.
Kevin

 

[obobskivich]

I take it the title is ironic, not literal?

regardless, best of luck

 

[Tyll Hertsens]

Quote:

Originally Posted by obobskivich /img/forum/go_quote.gif I take it the title is ironic, not literal?

I won't spill the beans yet, but have you ever heard the joke about the little boy shoveling the giant pile of manure in the barn?

He says, "With all this poop, there's got to be a pony in here somewhere."

The question is: did we find a pony?

 

[Jerrycan]

Wow, sorry to hear this. Let's hope it turns out in something good for everyone.
Thanks for sharing this. In my opinion that's one of the (many)things I like about Headroom, your sincerity.

 

[pabbi1]

Interesting thread, as this very possibility had popped amongst so VERY knowledgeable folks at a meet back in January, thinking the Senn and Grado products might buy another year for several entities in similar straits.

My former company ( a small, specialized global software company) had 275 employees in June of 2007, and has about 40 today. They have spectacularly bad management, with investors that may just have bigger fish to fry (yes, based in NY), but a really spectacular implosion which is sadly all too common these days.

Best of luck, especially to the 'costs' who will be affected by the transition.

 

[kboe]

I hope its a metal extruded, rubber bumper pony! With op-amps, tubes, switches, and "Headroom ...... ..........." stamped on it somewhere!
Kevin

 

[obobskivich]

what does "metal extruded, rubber bumper pony" mean? (also, thats hard to say outloud)

 

[kboe]

Amp, maybe!
Kevin

 

[CrazyRay]

 

[kboe]

Well, I have just finished my 167th cup of coffee and I can no longer feel my bum. I also may have had three heart attacks from the caffeine overdose! "WHAT IS GOING ON UP IN HERE!!!"
Kevin

 

[kelvinz]

 

[madmax7]

Hopefully that pony lays golden eggs. Wait.. er... nm. Seriously though, we all hope the best for ya man!