Trusted Professionals
CFO Advisory Benefits
Our CFO Advisory services empower businesses with strategic financial insights, improved cash flow management, and tailored growth strategies. With our guidance, clients turn financial challenges into opportunities and achieve sustainable success.
Painting Company
From Financial Chaos To A Colorful Comeback
Over the course of 18 months, this painting company owner was struggling, despite generating over $5 million in revenue. His focus was on his salespeople rather than the business, which led to financial losses and shark loans that worsened the situation.
Key problems identified by a business consultant included high-interest loans, poorly aligned sales compensation (based on sales price rather than profitability), and incorrect pricing that didn’t cover costs. The strategy implemented included paying off high-interest shark loans, restructuring the sales team’s compensation to align with company profitability, launching a customer retention and referral program, and revising the pricing structure to focus on minimum profit margins instead of volume.
Results:
- Shifted from $100k negative cash flow to $350k positive cash flow
- Paid off all shark loans
- Improved sales team morale and alignment with company goals
- The business became profitable with cash reserves
Marketing Agency
Dramatic Turnaround
Five years ago, a marketing agency owner was in a dire financial state, with a $350k net loss and severe negative cash flow. Despite being a talented marketer, he lacked the knowledge to manage his business finances, and his employees were earning more than him, despite him taking all the risk. After having a business consultant conduct a thorough financial assessment, the primary goal was set: to increase gross profit from his services. Over several months, the client paused sales to focus solely on this objective. Though he ended the year with a reduced loss, the following year, he saw a dramatic turnaround, generating $250k in profit and positive cash flow of $100k—a $500k improvement. Now, he runs a healthier, more profitable business with less stress and continues to be a client.
Real Estate Photography/Marketing Company
Refocusing On Profit
This real estate marketing company generated $4 million in sales but was losing $6 million due to poor pricing, high overhead, unsustainable employee compensation, and reliance on investor loans. Despite double-digit growth, profitability was never achieved, and cash flow issues were severe. Inefficient operations, excessive marketing spend, and high customer turnover compounded the financial strain.
Actions Taken:
The company underwent significant restructuring:
- Cut staff by 50% over two years, eliminated unnecessary roles, and moved to a remote workforce.
- Raised prices, reorganized sales and customer service, and eliminated discounting privileges.
- Shifted marketing focus to strategic partnerships and renegotiated contractor rates.
- Set strict profitability criteria for projects and dissolved non-profitable licensing agreements.
Results:
- COGS reduced from 62% to 50%, and operating costs fell from 87% to 50%.
- Customer acquisition cost (CAC) dropped to under $300, and lifetime value (LTV) increased to $3,478.
- Customer turnover reduced, and commercial projects grew to 50% of revenue.
- The company achieved its first net profit of $49k, with projections of $350k by the third year.
- A merger and acquisition (M&A) deal was brokered, leading to a sale and a $6 million royalty agreement.
The restructuring saved the company, provided investor returns, and restored the CEO’s personal and financial stability.
