This week we had our monthly accounts meeting with one of our agencies who this time last year were facing financial ruin. They had been an established agency of many years and had decided 3 years ago to grow their business by hiring new staff.
Unfortunately they were the main earners for the business and the staff they were taking on were rookies which took up lots of time with training and monitoring. This meant that the revenues started to drop, the overhead started to grow and the new staff were not performing to support their cost to the business. By the time they had realised this they had a large director’s loan with not enough dividends to cover it and the possibility of not being able to keep up with their statutory payments.
TBOS sat down with them and discussed ways of “trimming the fat” through staff, overheads and personal expenditure and then set projections and targets to get them out of this scenario. We also agreed monthly meetings to discuss the management accounts and ensure they remained on track.
12 months later and they have now had the best year ever, have cleared their director’s loans and are up to date with their statutory payments and looking forward to an even better 2015 with TBOS’s help.