Millennium Music/AbundaTrade Case Study

The full case study is here:  http://bit.ly/7d9m4.  Thank you to Inc. Magazine and AbundaTrade for making it available.

“You can lose your focus on the big picture.”  This is a quote from owner Kent Wagner.  Like most small business owners, Mr. Wagner was consumed with the day-to-day operations of his business and, unfairly, it may have hurt his business.  The tactical aspects of running his business ultimately interfered with its long-term prospects.  Mr. Wager needed help with the strategic planning aspect of his business.

Strategic planning assistance from ImperoCo would have addressed Millennium Music’s mission statement, SWOT analysis, and strategy formulation.  With the benefit of a sound mission statement, Millennium Music might have better understood what their purpose was.  With this understanding, they might have seen themselves more as an entertainment retailer than a record store.  This would have likely helped influence their thinking through the years as the industry moved from traditional to digital media.  The mission statement would have also laid the groundwork for a SWOT (Strengths Weaknesses Opportunities Threats) analysis.  One of the threats they might have considered is the change in the industry that ultimately caused Millennium Music’s demise.  With a sound mission statement and the information from the SWOT analysis in hand, Millennium could have formulated a strategy that would have sent it on a completely different trajectory.  A trajectory that might have prevented sizeable financial losses.  Being adaptable is a fine quality, but it is even more valuable if it is in response to a sound strategic plan.

However, with the damage done and the decision made to change the business model, a capital budget would have been helpful.  A capital budget would have allowed Millennium/AbundaTrade to quantitatively analyze the impact of the new model.  This change would have, of course, been based on forecasts and assumptions; but it would have been thorough and well thought out.  While the decision seemingly did work out okay, the piece of mind provided by capital budgeting could have only been beneficial.

Based on the $3 million annual revenue figure specified in the article, the previously mentioned services from ImperoCo would quote as follows¹:

• Mission statement, SWOT analysis, strategy formulation, and capital budgeting service –
  • Down payment of $1,121.56 with eight monthly payments of $420.59.  Or…
  • An immediate cash payment of $3,939.49.  Representing a savings of $546.76 (12.2%).

ImperoCo can help businesses whether they are micro, small, mid-sized, prospering, or struggling.  This help all starts with strategic planning guidance.  With that foundation in place, focused, rational analyses can be performed and decisions can be made.

¹ Pricing quote as of November 18, 2011.  Pricing is subject to change at any time.

KB