How some bright sparks in business created a big splash at home
Another CFO Now success story
ST8 Wide Electrical is a family run business based in Toowoomba and has been an accounting client of Clear Vision Accountancy Group for 10 years. Its owners, Kane and Libby have worked hard, always with the desire to take their business to the next level.
That was then
Reviewing some financial performance scorecards that we prepared in conjunction with their annual tax returns led to us facilitating a formative planning session with them in January 2017. Arising out of that planning session, Kane and Libby set some exciting personal goals which in turn required the business to achieve its potential.
For Libby, it was developing the confidence to firstly leave the stability of her former career to come and work in the business while continuing to raise a young family. For Kane, it was the realisation that relinquishing certain administrative tasks (that he didn’t enjoy or need to do) would free him up to play a more decisive role in the future direction of the business. They also had their hearts set on making an important home improvement, in the form of an outdoor swimming pool.
With these goals set, Kane and Libby enthusiastically embraced our recommendation to engage Clear Vision Accountancy Group to help bring these plans into reality.
The journey so far
One of the first areas we worked on together was Invoicing and debt collection. Kane would be the first to admit that this area needed attention. Typically, as much as 80% of the work performed by ST8 Wide Electrical would be invoiced in the last week of the month and clients were taking on average 47 days to pay. With Libby taking over this function the business got a double boost. Firstly, thanks to fresh policies and procedures, work was invoiced more quickly and secondly, a better collection process shaved the best part of a fortnight off average debtor days. The combined impact of these initiatives was a much stronger cash flow and increased dividends to the deserving owners.
Freed from these responsibilities Kane’s creativity blossomed. He created a Farm Management System, which enables more efficient use of water on rural properties without replacing existing infrastructure. There is considerable potential to take this know how internationally by way of distribution agreements.
This is now
These days the new pool has become central to their lifestyle and the family spend plenty of time enjoying it.
Kane has reinvested some profits back into the business, to help fund some new products which he will soon take to market. Unlike traditional electrical services which are based upon charging out at an hourly rate, these new products have the potential to generate profits without labour. We call this “sleep money”, as literally one sale can lead to receiving income many times. Notwithstanding this opportunity, it’s part of Clear Vision Accountancy Group’s CFO Now service to ensure that the existing business continues with the new disciplines that have served it so well.
What the business owners say
We wouldn’t be in the position we’re currently in without the support of the CFO Now program. We feel like we’re in a partnership with CFO Now and because of this, we are accountable to it.
We receive enormous support from the planning sessions with Justin. Having someone on our side who reminds us of where we’ve come from and who keeps us on track to achieve the goals we’ve set is of huge benefit to us. When you’re working in the business it’s sometimes easy to forget what you’re working for.
Justin & the CFO Now program speaks to us as individuals and as a business. We can speak with him whenever we need to and we know he has our back.
It’s been exciting to see our plans become reality. We have always wanted a pool for our family and being part of CFO Now meant we could have our pool without losing financial success & freedom.
This is just the beginning; we have many more goals, both personally & in our business which with CFO Now we know we’re on track to achieve. We’re grateful for the assistance received from CFO Now and are looking forward to the future in our business with confidence.
Our experience has seen my wife and myself grow from salaried PAYG tax payers 10 years ago through to recent years of being business owners with several staff and a number of companies and trusts now held.
The level of advice received and communication around all significant changes considered over the last few years has been excellent . We have really appreciated how Justin and his team have understood our needs and listened to what was important to us given the changes in circumstances contemplated.
The level of advice and vision required to understand our future position has been outstanding and we really value their service, hard work ethic and business structuring and planning advice.