Industry downturn predicted. Defensive measures employed. Profit improvement and expansion despite gloomy market status.
Service or solution offered:
- Profit Improvement
- Cashflow Improvement
- Business Coaching
Summary of solution:
Working closely with Martin enabled us to predict his cashflow six months out. Through that process both Martin and Evan started to see that big problems were about to happen in the industry.
Projects were being delayed or cancelled. Debtors rising.
Martin already had a strong balance sheet however by knowing right now what was happening in the market, we could employ counter measures.
We helped Martin take an axe to all unnecessary costs, renegotiated payment terms with suppliers, and retrenched staff.
A staggering $300,000 negative cashflow hole ended up only being $17,000 as a result of the counter measures taken.
We also worked closely with the Banks because we knew exactly what our problem was and could explain it to them and they were happy to support it.
The downturn affected Martin’s business however due to the defensive action we took he still managed to stay afloat and run the business at a profit while many of his competitors folded. These measures subsequently enabled him to increase profits by 10% with plans to expand further.
- Remained profitable throughout downturn
- Increased profits by 10% with view of expanding this year
What our client says:
Increased our bottom line by 10% during a severe industry downturn
With the sudden downturn in the market we had to restructure and change the way we did a few things to stay viable.
Evan enabled us to identify early where the market was heading, what cash flow issues that could bring up, and what we needed to change. We are able to implement strategies to ride out the downturn and stay ahead of the curve.
Evan also helped to motivate and keep me focused on where we needed to go.
As a result, we’re still here when many others have folded. We are still a profitable business with profits up by 10% and we’re looking to expand again this year despite the market downturn.
Evan and his team have supported us from the start of our business journey and provided excellent tax planning and financial advice as well as business mentoring. He helped us build our business from ground up to where it has been very successful and solid company within our region.Martin Deckart – Tristar Power