Case Study – Put the spark back in your cash flow

The Problem

A large electrical contracting business had grown from $4M p/a revenue to $11M p/a revenue, while having their profit go from $1M p/a to $70K p/a.  They were investing in another larger commercial building for the business to move into and had a $1.5M renovation/building bill to pay over 9 months and were struggling with cash.  95% of jobs were now losing money, mainly due to incorrect pricing and small to no margins on the work. The business budget was simple and not really understood and there was NO cash flow constructed at all.

The business was struggling and heading towards bankruptcy (without the owners realising it) and creditors were only 2.5 months away from knocking on their door and closing the business down.

The Solution

The owner asked us to help them construct a budget and a cash flow from scratch.  Using the clients  business knowledge and having an honest objective look at the businesses past performance, we constructed a very specific budget with workings and assumptions.  This allowed us to gather real information and enabled us to progress forward.  We created a cash flow document based on reality and discovered a number of periods in the short and medium term that needed to be addressed.   We worked over a 5 month period and the owner looked into his business like never before with many “light bulb” moments and changes of opinion going forward.

The Result

With the clear knowledge of what the “real situation” was and the “extra time” the owner now had to save the business, the owner;

  • Received $2M funding from a private investor and saved the business from closing
  • They focused intently and converted $15M of new work at 15% margin within 3 months
  • They extended the building project from 9 months to 15 months
  • They saved themselves from losing the business 100%
  • They saved their family home from the banks as this was the guarantee of the business debt on their major projects

This is just one example of how we have worked with our clients to help them achieve a secure and successful financial future.

If you would like to know more about how you can work on your business, rather than just in your business visit the link and find out more about the exciting new

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2 thoughts on “Case Study – Put the spark back in your cash flow

  1. With havin so much written content do you ever run into any problems of
    plagorism or copyright violation? My site has a lot of completely unique content
    I’ve either authored myself or outsourced but it appears
    a lot of it is popping it up all over the web without my permission. Do
    you know any solutions to help stop content from being
    stolen? I’d certainly appreciate it.

    1. Hi there,

      As of yet we haven’t had any issues with copyright or plagiarism, so unfortunately I don’t have a solution for your problem.
      You can always try personally contacting the people plagiarising your content and ask them to take it down otherwise you may take action.
      You might also like to check out the website

      Best of luck.

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