’s wants 50% of your savings. needs’smain goal is saving their customers time and money through an analysis of theirbills and negotiating with their service providers for a lower rate. Presidentand Founder, Barry Gross had a leg up when it came to competitive advantagebecause he virtually had no competition in the industry. Barry’s previousexperience gave him the negotiation skills to use on behalf of his customers.

The company was successful right off the bat, with a gross profit margin of 64%in 2013. While it was successful to begin with, he did not put a highimportance on leading the company to move forward with its exponential growth.This was not something the company was ready for. They were barely even able tostay profitable. In order to get back on track, Barry would need to come upwith more long term and short term goals and adjust his strategic plan to keepup with the changes and booming business.’s operations, strengths include monthly billing packages.

Theyhave trained employees who negotiate with the service provider to reduce thecost of utility bills from your home. Ultimately, they take care of minorinconveniences of negotiating with the service providers. Finally, they arefast and efficient with no direct competition. Weaknesses include people tryingto negotiate themselves to get out of the fee from and 50% ofsavings go to Also, some sensitive information is exposed.

Itis an industry where there is no competition, which makes room for imitators.Since it is an undefined target market, it hard to segment Their corecompetency is training and hiring the best negotiators to give their customersthe best deal possible. Their weakest link right now is a lack of exposure.

They do not have a large amount of customer attention and when they do,customers are uneasy to give out personal information to a company that isstill in the middle of their startup/growth phase.Overall, thebusiness concept is a great idea because a lot of customers have no idea how tonegotiate prices with their service providers. However, customers don’t want tosign on to this business because wants 50% of your needs to be able to relate to their target market on a closer,relationship based stance to increase trust and understanding of what it isthey do. From the start of 2014-May 2014, it is clear that there are greatresults from quickly looking over the balance sheet.

In looking at thefinancial statement one can see that revenue increased by 3% since 2013,despite only being 5 months into the year. Contrarily, in another alarmingarea, total expenses increased by 188% leaving the company at an overall losswith an extreme decrease in net profit. The increase inwages makes sense due to the increase in employees and mandatory employeetraining in order to keep up with the increases in customer sign ups.

This isalso composed of training hours. No details were given as to the reasons forthe increase of 140% of “other expenses” and will need further analysis todiscover why there was such a large increase. The increase in the MerchantProcessing Fees account could be as a result of the increase of business orcould be a result of processing errors due to new staff at

Much investment was put in to the employees and their training, a further lookinto the rest of the 2014 data and later data will show if this majorinvestment was worth it or not.             In looking at the balance sheet, you cansee that accounts receivable in 2013 was around half of the total assets.However, in 2014, it greatly decreased to only about 12% of the total assets.Additionally, the cash account has only increased in a minor way.

This could bedue to customers using the early pay discount option. iA new incentive programshould be released to where the company does not end up losing that much moneyas they are right now.            Overall, is a profitable company when net income is being considered.However, there are a lot of moving parts with the organization that have notbeen successfully worked out.

They have a lot of opportunity to grow since theydo not have any direct competition in the market. Billcutterz is somewhere between the startup phase and the growthstage of the business life style. This company is relatively new, and they aregaining revenue quickly, but it is difficult to say that they are a stabilizedcompany. They have a lot of kinks to work out. They need to find a happy mediumbetween making the most money that they can but also saving their customersenough money to use their service.

They could create better relationships withtheir customers so that the 50% that needs to be returned back doesn’t seem so”painful” when it comes out of their pockets and back to, a large adjustment needs to be made on Barry Gross’s behalf. Heis excellent at negotiating but needs some help when it comes to the strategicplanning portion of his job. A better strategic plan and adjustment to thecompany’s goals can help them save money when they have large changes theycan’t handle such as the customer influx in 2014.

  Operational issues faced by include: a slowprocessing system, the company was unable to meet the demand as a result of theprocessing system, too much manually entry with the forms, short staffed andoverall unorganized in the chaos. Strategic issues include: the business idea did not take long termplanning and future development into consideration, the CEO doesn’t focus onstrategy as much as he should but spends all of his time training, because ofthe systematic issues and the company not managing to fill all the orders theaccounts receivable will be slowed down.

            Some recommendations to handle theoperational issues include: to Increase employee base to handle future growth,upgrade the processing system to handle large amounts of sales            Recommendations to handle thestrategic issues include: better strategic planning that considers the futuredevelopment of the company through more detailed short and long term goals,