Our client is the owner of a hotel in regional QLD. They have been trading for approximately 5 years, and employ 15 staff members. The owners purchased the business at the height of the hotel market, before the Global Financial Crisis. The client came to us as they were concerned their business was going to be foreclosed by the bank.

Some major issues that we identified within the business included:

• No reviews of gross profits margins

• No control of the inventory system

• The bank was close to foreclosing

What we did:

• We presented not just financial statements to the bank, but a comprehensive business analysis – something the previous accountant never did.

• We brought the client a strategy to monitor the inventory systems, and provided them with an action plan of what changes needed to be made to best manage their inventory.

• Set up a system to monitor gross profit margins

Results

• We kept the doors of the hotel open – presenting a comprehensive business analysis allowed the bank to gain an understanding of the whole business, and instead of foreclosing, they extended their facilities for another year to allow for changes to be implemented.

• Regular reviews of the inventory system gave the owners valuable data like their most profitable product lines, highest selling products, and also the dud products to get rid of, which quickly increased their profits.

• We took stress away from the client, they didn’t have to worry constantly about their business’s future.

Want results like this for your business? Contact a business advisor today!