We took over a failed business back in March and even though we are not in full control just yet we are closer to achieving that. The parent company pays for our services each month which we agreed a fee and they are getting closer to delivering on the deal. A little frustrating as the savings we have made they have benefitted and what they owe us is starting to add up each month. The good thing is they are still in business which was the initial aim and we would not have had this opportunity if it was not for them.
One needs to be able to see the bigger picture and the reason why we get up every day and why I keep letting my family know what needs to happen next. When you work like dogs working most weekends you need to understand why all the sacrifices because everyone has to play their part. Having everyone on the same page does make thigs far easier as working with family is not easy and communication is what is normally lacking.
This is a two year plan that is in play and we have ticked off the first 25% staying on track even though we have been tested on numerous occasions. Those occasions will fade away the stronger we become financially and I expect that will take another 12 months to achieve. Very few new businesses are financially stable within 18 months which normally takes many years to get to that point. This is fun though as you are working towards your financial future and cannot be seen as a job mainly because you know where you are heading.
The first 6 months saw us reduce the spend by over 50% coming way under budget achieving the targets we set. Nothing is ever easy and all you can do is try and give of your best, but more importantly have a capable team around you because this cannot be achieved without service providers doing their jobs growing your business and growing theirs at the same time.
The next 6 months will see us grow even more becoming financially independent not reliant on the monthly budget we receive. This was the only income paying for all the expenses and that is changing slowly. There is a three fold plan in place and we are now working through stage one which will take us through to March next year.
The plan is to bank all the profits creating a decent sized kitty in order to place one big order of around 20 rolls of trampoline material which should last 8 months. The aim is to have 4 different color variants and not just the boring black which will make us the only company offering color choices. Any business has to have an edge over the competition besides price and this will turn the business around very quickly.
The ultimate aim is to become financially independent over and above the contract payment we have which covers all our expenses each month. I do have the confidence we can double the income within the 24 month period which will mean the budget we receive each month now becomes entirely profit.
All this highlights is how badly the business was being run if we consider we also have reduced their original monthly expense by more than half. This was always seen as a cost center and not a profitable business mainly down to them not understanding the business. I knew there was a decent business sitting here and just had to work through the process of first turning it around. Understanding the costs and what the real prices are is the key in logistics and not just accepting the quotes given by service providers. Your budget can run away with you very quickly if you do not know your costs.
