Case Study 1 – Funding for Growth

A specialist business services company had identified that it was sub-contracting large amounts of work to another company, which gave it two strategic concerns:

1) potential over-reliance on that one supplier

2) an opportunity to increase the scope of their business activities and make increased profits

Many businesses identify these sorts of issues but they often remain as theoretical concerns. The company then learned that this supplier was considering withdrawing from that area of business and saw both an opportunity and a need to act.

Having identified a couple of key individuals with experience in that specific business activity, they formed a new company and contacted us for our advice.

The management were very good instinctive businessmen, with a good understanding of their industry, reguilations, contracts and negotiations, but they identified a need for help with business planning.

We took their business forecasts and developed a full three-year financial model including daily cashflow modelling to identify peak funding requirements. We then met and discussed sensitivities, running up different scenarios live on screen for variables such as business levels and customer payment performance. The directors quickly developed a good understanding of the likely needs of the business as a range of possible outcomes, and were able to arrange finance from within their existing personal and business assets.

Sometimes you can fund growth from existing sources, or you may need to go to external sources such as banks. We can help you identify what you need and where you may be able to find it.