“Before Stu and his team at 542 Partners, my business had unsustainable cash flow and business premises issues. After working with Stu I realised new premises and business processes that has increased revenue streams and customer numbers. Now I am free to focus more on what matters to me rather than being tied up with the admin issue of my business”XXX, Director
Companion Animal Vet
Companion Animal Veterinary Hospital started as a small animal veterinary practice located in Dapto. Experiencing rapid growth, the owners needed to make a decision to transition to a professional and healthy business structure or risk maintaining the growth in customer base.
The challenge
Faced with significant cash flow issues, Companion Animal Vet, risked unsustainable cash flow issues. But it wasn’t all bad news – if the right decisions were made there were significant opportunity for business growth.
With limited finance available to implement several investments, 542 needed to made smart decisions limited resources available (including the possibility of using superannuation), to drive investment and cater for market demand. The priority was moving premises, but needed to be done in conjunction with improving long-term cash flow and financing options of the business.
The process
With the client’s permission 542 reviewed relocating them to a larger facility that catered for growth and new revenue streams. This would be acquired by and kept within their Self Managed Super Fund.
We outsourced bookkeeping requirements to SafeKeeping Advisory. We implemented and continue to monitor key KPI’s to better assess the health of the business. Frequent meetings are held to discuss ways to improve the cash flow position of the business, which has proven successful. Referrals to a trusted financial planner and commercial finance broker were provided to further assist and inform the client.
The result
Companion Animal Vet Clinic is now in the best cash flow position since the business commenced. Extremely happy with their new business premises they are now experiencing solid growth in customer numbers and revenues. The client is now able to spend more time with their family and less tied up with admin. Going forward Companion Animal Vet Clinic are a position to refinance and better structure the business for future profits.