Client: Lime & Tonic
a B2C e-commerce business based in Sydney
The Client a B2C e-commerce business based in Sydney, had been profitable for the last five years, but failed to reach the owner’s goals around revenue, market share and profit. The owner didn’t have the time to think about strategy, the performance of employees or to explore market opportunities. He felt like he ”Was constantly fighting fires and working around the clock to keep his customers happy and his Employees motivated”. The owner was highly entrepreneurial but had no formal business education, so putting the structures in place to support the growth was challenging.
CFOs on Demand were engaged to create a strategic plan and assist with its implementation. James investigated the competitive landscape and their value propositions, their sales channels and partnership opportunities, documented critical activities, explored some opportunities to grow revenue and looked at what their future cost base could look like. During this process the management team worked closely with our business advisors to ensure buy in with the team and that the key people had a voice throughout the process. A three year financial and strategic plan was produced and the management team were taken through it.
James continues to work as the CFO for the business, handling a broad range of activities from looking after the outsourced accounts department, commercial support, marketing strategy, helping fund the business and owns the strategic and long term plan.
James , the board and the owner agreed the future direction of the business, an expansion into new markets. To do this the business needed a capital injection to hire people and ramp up marketing.
A long term financial plan was created and funding secured.
In order to execute on the ambitious plan, a budget was created to focus the department heads with KPIs. On top of this critical success factors were identified with owners attached. These were monitored regularly to ensure the business was moving in the right direction and that the targets were to be met.
The business has successfully expanded into the B2B events market, the revenue line now outstrips the core revenue streams. The business has grown revenue and margins by +40% for two consecutive years.
CFOs on Demand gave our Business the firepower to think through the strategy and then follow through and execute. Prior to this, I had ideas and a vague understanding of where I wanted the business to go, but wasn’t sure how to get there. They helped me get my ideas onto paper and looked at the commercial implications. They also chipped in with their own ideas. The result of this work was that we entered some new markets and now have multiple revenue streams which has grown revenue and profit and secured the future of our business.