The company had been growing steadily over the last few years, however it had an issue with a large contractor.
This caused its revenues to shrink and so a revised plan was needed to help the company expand.
The company is a highly successful business group with a large standing in the construction industry, concentrating on providing MEP services for several large contractors. However, as they lost one of their major customers due to a dispute over works done, they needed to refocus and create new revenue streams.
The major challenge the company encountered was cashflow. Losing their biggest customer and a loss of revenue of several million, the company was facing being shut down. The company, then began a series of cost cutting measures, cutting back staff and come back to a position of growth and strength. During this period, various revenue streams were identified.
The company realised that to be able to grow other revenue streams, it would need to diversify. However, the other major hurdle the company had was a lack of financial expertise in the company. Their day to day financial compliance was being done, but they lacked having someone who could prepare business plans and help guide the company and its board of directors.
Initially, EFM were brought into help the company finalise the year end accounts, prepare cashflow forecasts and help navigate the various help available for Covid-19.
The managing director was always on the look-out for any grants that may be available for the company. It was identified that Herts Council were doing a business development grant which would be ideal as emphasis was on companies growing.
This grant was part of the new £20m set of grants announced by the government to help SMEs grow and develop.
The first thing the directors did was to contact the department that was handling the grant applications locally and go through the business ideas on the phone. This was done so as to ascertain our chances of getting this grant. The department were very enthusiastic about the business ideas and encouraged the directors to submit an application, together with a business plan.
We created the business plan to support the application. Projections were done for the next 3 years, including a detailed 3-year profit and loss account, together with a cashflow forecast. The company had already done quite a lot of the research as to what it would require in terms of plant, vans, and staff. This plan was submitted together with the application form to the department handing the grant in record time.
How the client felt:
The company directors felt pleased with the speed with which the business plan was put together and submitted, and even more pleased when they were awarded £100,000 as a grant towards the business expansion.
EFM Expert: Hitesh Purohit