Reduce Cash Burn Rate.

Go from having 6 weeks left before the money runs out, to over 6 months money in the bank

Client: Beachside Creative

Project: Reduce Cash Burn Rate so that the Business Survives

Situation

Beachside Creative is a start-up sales, marketing and advertising agency aimed at SMEs.

The MD of the business was concerned that, although the business had started well, the business had stalled and needed clarity on direction and focus.

The business at the time had such a high cash burn rate that it only had 6 weeks of life left before running out of cash.

Task

Our role in this assignment was to help two of the directors to clarify their thinking and focus on the important.

We used a structured method, the SOWOT Model, to clarify what was important and what was missing from the business model. We helped them to focus on, and to understand the impact of the cash burn rate. They then implemented necessary actions to dramatically reduce the cash burn rate and put the business on a sounder footing.

Outcome

• The business now has a properly nominated and authorised MD
• The directors have clear and defined roles
• The process for winning and delivering business is clearly defined
• The fixed costs have been dramatically reduced
• The cash burn rate has been dramatically reduced so that the business now holds cash to the value of a minimum of 6 months costs in the bank account, and is better able to cope with the variation the business climate

"Steve's almost instinctive insight into our business provided Beachside with the clarity and strength to take us to the next level of growth. He provided us with very clear objectives that needed to be achieved if Beachside was going to survive. I would certainly recommend Success Enterprises Consulting to anybody that is serious about wanting to make their business work."

Sarah McCully, Managing Director, Beachside Creative
www.beachside.net.au