Legend Power Corporate Update November 2011
At Legend Power we are committed to continuing on our corporate renewal to make Legend Power a sustainable and high growth organization. During 2011, we developed a compelling strategic plan, properly priced and positioned our product and reduced our cost of running the business. We have completed our revamp of all areas of our business and we will closely monitor our results and where required, continue to fine tune areas of the company for optimum results. Our “reengineering” of Legend Power is done; it is time to profitably grow the business.
Quite frankly, after the first quarter of 2011, it was apparent that the incumbent sales team and existing sales system were not capable of consistently meeting corporate revenue targets. I am now confident that changes have been made to correct that.
During the summer, we added Peter Hwang as our Director of Sales based in Toronto. Peter is a proven energy industry performer and together we have engaged three very experienced energy sales directors to represent Legend Power in the Ontario market. Peter and his team have sold tens of millions of dollars of energy efficiency solutions throughout Ontario over the last several years. In my opinion, this is an “A” sales team.
The primary goal of the new sales team is to ensure that we achieve our sales potential by utilizing a systemic and repeatable sales model. This model will be replicated and stamped within any territory and expanded aggressively with strategic channel partners. The key was developing and validating it prior to a large scale expansion.
The sales team has implemented some key strategic objectives to ensure a successful sales launch. Firstly, they initiated a core lead generation strategy that is on track and measuring to create sufficient leads to drive our sales target. This level of activity combined with our completely revamped value proposition and supporting marketing collateral provides the sales team with enough qualified prospects to quickly ramp up revenue and achieve on-going profitability.
This ongoing level of consistent activity with a clear and concise message is the key to our success. We developed and implemented a sales training program which is being used internally and with our new key channel partners.
Legend Power will soon announce significant progress on securing partnerships with proven energy solution resellers to resell our solutions in Ontario and when appropriate to other regions across North America.
By implementing our new process over the last few months, we have received several new commitments for future installations of our products.
We will continue to utilize our Q & A format update based on the most common questions asked by our shareholders:
How are things going? Are you making progress?
- We continue to implement our business plan and we are securing commitments for our products. We have taken the necessary steps to ensure we have proven sales talent and a world-class sales system to drive our sales. Since our September implementation of the new system, results have been very positive and we believe we have the right sales process in place to be successful.
- We continue to manage the cost of running the business and manage our cash very closely. We are focused on growing our revenue so we quickly achieve profitability.
- We also are having numerous senior discussions with International property managers, resellers and other strategic clients that could result in “company-maker” contracts.
Since the January 2011 turnaround launch, what have you learned and do you still believe Legend Power will be successful?
- I have no doubt we will be successful. Our team is pumped about the future of Legend Power.
- Turnarounds take time and one must be open to challenging the status quo and have the will to implement positive change. We have the will and we are most certainly committed to take the necessary steps to make Legend Power successful. In short, we are absolutely committed.
- We have “listened to the voice of our customer” and we are making the necessary changes to our business to align our customers’ expectations with our solutions and services. We have made huge strides here and we will continue to modify our business practices appropriately.
- We have experienced some funding incentive approval and payment delays since the Ontario Power Authority (OPA) altered their incentive program. Although the changes have been mainly administrative, we are working with the OPA to improve the timeliness of processing our incentive requests and payments so we can provide timely information to our prospects. We expect the program delays to be eliminated by the end of this year.
- Our new sales team and sales processes continue to properly engage our prospects and systemically drive the buying process to shorter sales cycles. The changes made to our sales personnel and systems are the most profound improvement made since I joined the company. We have very high expectations of our sales team and processes.
There hasn’t been much news on Legend Power. Do you expect more press releases about the company’s progress on a go forward basis?
- Yes. During a turnaround, although there is a lot of activity and progress, the progress may not be press worthy. We have had long “quiet” periods without issuing news releases but on a go forward basis you should expect more press releases detailing clear proof that we are making solid progress.
- With continued positive results we will be more aggressive in sharing our story and progress with the investment community.
So you are confident that Legend Power has a bright future and will prove to be a good investment for your stakeholders?
- Absolutely. We have worked hard to turn around the company and achieve alignment with our prospects and markets. Before we changed the sales team and process, we were trying to sell technology and everything we did made it seem complicated and perhaps even risky.
- We have implemented a sales system that has been validated by our prospects and third party industry players. We have taken huge strides to present a proper business solution to our target markets in a way that they understand and value the business impact our solution may have in their organizations.
- The new sales team is an experienced professional group with many successful sales years in our target markets. Our resellers have existing relationships with our prospects and they have developed significant trust with our prospects over the years. The resellers are very excited about our product and our sales system and are committed to growing their sales of Legend Power solutions.
- Overall we have made great progress turning around Legend Power. Today’s Legend Power is very different from the Legend Power of late 2010:
- We have clarity on our business strategy
- Team morale is high
- Monthly burn rate cut in half
- Reduced product costs and increased margins.
- Proven new sales team and process
- Reseller channel growing
- Target market feedback is very positive
We believe we are just at the beginning of a growth stage that will make Legend Power an industry leader in energy conservation. The key ingredients are in place and it is now a function of execution to be successful.
We will continue to work hard and smart to deserve your trust.