From Debt Laden Roofing Contractor To Rising As The Prime Roofing Company In All Of Calgary
Background Before Working With Avitan
Tony and his wife Lisa came to Avitan in serious financial trouble despite routinely bringing in $2M in annual sales revenues. The problem they faced was that they were barely making any net profit after all of their running expenses had been accounted for. They also found cash flow was often extremely tight creating an immense strain on them personally as a family.
They often found themselves in the position where the systems they had in the business kept breaking and falling apart, which then caused Tony to wear all the hats in the business.
They knew a lack of business knowledge and inexperience were serious issues hindering the company’s growth and their own ability to live the kind of lifestyle they wanted for their family. However, they never stopped dreaming big with a desire to become the #1 roofing company in Calgary, Alberta, and they were determined to get the results they wanted.
$2M in sales with a net profit of 2% of sales – before working with Avitan
$5M in sales with a net profit of 10% of sales – after working with Avitan
What We Did
We performed a detailed Analysis of the company and discovered cash flow issues as a result of skyrocketing overheads and an internal lack of accurate systems around managing cash flow, plus inaccurate estimating and bookkeeping practices and procedures. This meant the company struggled to retain those juicy net profits needed to survive.
Based on the data we had from our Analysis, it was clear that the company would go bankrupt in 12 months if nothing changed.
So we rolled up our sleeves and focused our efforts on improving the company’s profitability and debt reduction. We develop an advanced estimating system that allowed them to retain more anticipated net profits on every new job they secured. We showed them how to create an accurate reporting and bookkeeping system that they had been missing.
We also performed a detailed company Annual Budget with Tony and Lisa to outline a roadmap for the company’s profitability and show them where the company would be at in 12 months from now.
After the first year of working with Avitan, debt was no longer an issue in the company. They now had an accurate estimating system that reliably generated a net profit result on each new job they secured. They had an accurate and detailed reporting, accounting, and bookkeeping process and procedures that gave them control over the numbers in the business.
We also identified where their overhead costs were out of control and significantly reduced these allowing the company to retain more of their anticipated net profits.
Perhaps more importantly, net profits were consistent every year because of the specific systems we helped them develop. Tony and Lisa finally felt confident running this business knowing that their systems were strong and reliable, and would not fall apart as they did previously.
And perhaps best of all, their dream of becoming the number #1 roofing company in Calgary came true and they became the contractor that all the roofers wanted to work for, and the one competitors envied.
In a follow-up call, Tony once said something to the effect of, “Thanks to Avitan, I’m living the dream – beautiful family and beautiful company.”
If you’re like Tony and Lisa and want to get greater control over your company’s net profitability then book a free 30-minute Strategy Session with an Avitan Senior Advisor.
This is not your sales pitch, shove our stuff down your throat, it’s about seeing if there is a way we can best help you get what it is you want in your business.