An internet provider in Rio Grande do Sul, operating in Planalto, Nonoai and the surrounding region, was the kind of company many would like to own: lean and cash-generating. The problem was what happened to that cash. The partner withdrew all the profit to his personal accounts, and almost nothing was reinvested in the business.
In the short run, it looked like a good arrangement. In the long run, it was a brake.
The challenge
By not reinvesting, the company paid a huge opportunity cost. Every year, growing became more expensive, and not growing today meant suffering more tomorrow.
The trigger came from the market. After the pandemic, the sector stopped being easy: customers stopped knocking on the door. A stagnant company that had been surviving comfortably was now at risk of losing ground.
How Vispe worked
The work began with a strategic review of every area, from marketing and sales to operations and management, to identify bottlenecks, measure productivity and accelerate with intention.
The obstacles were significant. There was little organized data, and what existed was of questionable quality. Processes, methods and routines were built step by step. But the most complex part was the team's cultural resistance to change.
The turning point came from one insight: company culture is top-down. By changing the owner's mindset, it was possible to professionalize the team and management. Those who weren't willing to play seriously left the team, because no process or method survives a team that plays against it.
The results
- Revenue: up 40% in two years.
- Company value: multiplied by 2.
- Margin: maintained, even with the higher spending needed to make the company compliant.
- Closing: now happens in the first week of the month. Before, there was no reconciliation.
Value grew faster than revenue because the company didn't just get bigger, it got better. Many process gaps were fixed, each area got an owner and indicators, and a lot of money stopped going down the drain once productivity was measured.
What changed
The quality of this transformation could be measured in two ways. The first was the partner's peace of mind to focus on other activities. The second was the market's attention: the operation was sold very successfully.
The company came in generating cash but stagnant, and left as a value-creation machine. So much value that someone wanted to buy it.