Convergent Alliance | Products & Services
An automotive retail development company.
Convergent Alliance, Automotive retail development company, dealership remodel, dealership assembly, dealership profits, dealership software, automotive industry, dealership construction
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Products & Services

After a systematic analysis of the current reality from financials, processes, marketing plans, market share, competitive segment, units in operation to business culture, Convergent Alliance designs a Custom Business model and a Custom Profitability composite called

 

“ PAINT BY NUMBERS ”

 

First time ever in the industry Convergent Alliance offers a solution that is financially sound and economically applicable with combinations of both mathematical and logical approach. Since the profitability is based on carefully calculated “ Minimum Revenue Variables”; results are pre-determined and fool proof.

Customized business model is then put in application by a prescribed process and culture initiative and the results are tracked on a perpetual basis.

Balance sheet reflects the true state of your business. However it is the least utilized financial information by most retailers. There has never been a comprehensive education of this valuable document for the automotive retail industry:

 

  • Complete and accurate information on state of your business
  • Asset and liability analysis and identifying true profit
  • Capital assessment and Cash flow information
  • Liquidity information and discovering the hidden costs
  • Disclosing the unsafe/deceptive practices
  • Understanding the management team
  • Accurate inventory assessment
  • Finding out short comings before disasters
  • Streamlining information to reflect a healthy organization

Cash is King!..  A well run retail operation not only benefits from its creditors to its maximum extent but collect receivables effectively as well. Often times retail operations overlook dead cash which might be lying around somewhere on their balance sheets unnoticed instead of being active in their bank account. Daily and accurately used well designed cash reports guide successful dealers to keep track of cash and not get caught of guard. Liquidity translates into enhanced net worth. Most retailers consider their bank balances to reflect their true available cash which happens to be farther from the truth. A real cash management is an essential and integral part of daily operations, therefore requires various checks and balances:

 

  • Bank reconciliations
  • Receivable analysis
  • Payable schedules
  • Deposit accounts
  • Daily cash reports

Profit as the ultimate expected outcome of any business, also is subject to proper analysis and interpretation in order to determine whether or not it is in fact REAL! Insufficient understanding of the financial statement and bookkeeping practices may create a disillusion of profit on paper. Most retailers either do not have the habit or the necessary knowledge to assess their balance sheets properly. The profits that are reflected at any given month may or may not be actual depending on the proper interpretation of the balance sheet. This is the most common pitfall which causes retailers to ultimately fail.

 

  • Prepaid expense analysis
  • Receivable/payable contra accounts
  • Accruals
  • Inventory analysis
  • Fixed assets and depreciation analysis
  • Blue-sky evaluation
  • Revenue is critical to determine profitability. Transaction prices, margins, cost, inventory assortment and quality all has a great deal to do with maximizing revenue.However revenue often times is perceived as cash which may lead to actual cash shortages. Car dealers are notorious to pack themselves with artificial margins which turn into dead inventories without actual equity and create cash flow problems.

 

  • Overhead is every dollar of expense that is required to maximize your revenue, cash flow and ultimately profits. Most retailers misconstrued expense control as just mere reduction of overhead. If not done with proper data and statistics along with store specific non variables, cutting overhead in order to save expenses might just backfire and hinder your revenue generation and cause even greater losses.
  • Capital and loans by definition make up the liability side of the balance sheet and account for all of your assets. The critical element of this all is liquidity. Often times a mismanaged business finds itself in serious cash shortages due to unidentified frozen capital which sits on dead assets.

 

  • Cash flow as the most important factor of maximizing capital; is largely effected by turn rate of inventories, contracts in transit efficiency, receivables control, value of current assets, prepaid expenses and proper bank reconciliations.

 

  • The proper structure of loans versus capital investment on the balance sheet also becomes crucial particularly during times of economic stress in order to obtain loans or additional working capital.

 

  • Convergent Alliance is an expert firm in properly searching for and successfully securing additional cash.

Ultimately the success of a retailer heavily relies upon the processes and culture:

 

  • Custom design sales, service and accounting processes
  • Integrate all departments for operational controls
  • Define customer service process to be implemented by every individual
  • Create a culture of employees who deliver all of the above naturally

In order to have a lasting presence in the market place, a retailer also must create a brand identity:

 

  • Showroom design
  • Attire and appearance
  • Word tracks and mission statements
  • Personnel award programs
  • Longevity incentives
  • Brand marketing strategies

Retailer’s duty is not to leave every accounting activity to be determined by the controller. Additionally in an environment which is heavily regulated, there needs to be a much higher level of legal compliance:

 

  • Determination of chart of accounts
  • Consistent accounting practices
  • Perpetual schedule maintenance
  • Custom reports for vital accounts
  • Compliance with federal and state laws