Trade Business Accountants Case Study
Sales Revenue: $30,000,000.00
Staff: 82 employees
A landscaper client of ours was running a very successful business, turning $30M+ a year in sales revenue, that he had originally started out as a 1-man-band with a single ute, wheelbarrow and shovel.
(The kind of story we love to get around!)
Prior to working with us, however, he had recently purchased two other businesses that he believed would be complimentary to his primary landscaping company.
And also spent $45,000.00 on a new financial dashboard and business management system in the hopes that this would help him to remain in control and on top of everything.
Here’s what we discovered…
The new financial dashboard was not giving him any of the key metrics that he actually needed to run the business or understand it’s true financial position, one of the businesses he had purchased was okay, however, the second was a complete dud, i.e., a bad purchase that was draining the life from the other two, and he didn’t have any real visibility on what was going on.
And the reality of the situation was that he was going to run out of cash to operate within the coming 11 months, which wasn’t clear using the new $45,000 financial dashboard!
Now as you can imagine, this was serious cause for alarm.
So, here’s what the team at Trade Business Accountants did…
We developed a custom emergency plan to get on top of the situation as fast as possible, bringing everything back to financial basics and bullet point 1-pagers.
The plan focused on only 3 of the 7 key levers that every trade business owner can use to increase their profit and cash and educating our client on the reality of the situation and more importantly, how we planned to turn it around.
This plan that we put in place was quite straightforward but proactive, as we had to be on the front foot making sure everything from a financial standpoint was getting handled.
And within 5 months of execution the business’s cash position had been completely turned around and cash flow was at an all-time high, our client was no longer stressed and was back to working his normal hours prior to purchasing the two new businesses.
And his wife even called to thank us and let us know that we had saved their marriage.
Another fantastic result from a highly valued client!
Trade Business Accountants work with trade and construction companies of all shapes and sizes, so no matter the issue, we've got you covered.
If you're an electrician, plumber, painter, carpenter, or any other tradie business owner who is looking for assistance with your tax, accounting, and bookkeeping - click here to learn more!