Spring 2020. COVID just started and the whole world was in shock.

A multichannel supplement business with great ambitions reached out to us, as they
were struggling to scale their business profitably.

 

Our approach was to give the founders insight in their profitability per channel and
per product group, as well as the LTV and CAC per channel. This helped them as
product and marketing experts make better and bolder decisions in their growth
strategy, while being on top of their cash flow and profitability.

Revenue:

Challenge

01

The financial information was scattered – the accounting was setup for tax reporting, not for management information.
Marketing costs were not broken down in meaningful ways.
Shopify and Amazon data were not properly connected to the accounting.
In other words, there was all the complexity of multi channel DTC, but no central point of truth. Our challenge was to reorganise the finance setup so that it provided the owners with useful and actionable information.
Case Study Office

Solution

02

In response to these challenges, we have implemented a strategic framework:
  • Redesigned Chart of Accounts (CoA): A fundamental restructuring that allowed for reporting on a product group and sales channel level.. (include the value of future proofing the structure)
  • Clear KPIs and Priorities: Establishing key performance indicators – not only revenue and profit, but diving deeper into working capital, operating cash flow, marketing ROI, gross margin per channel and per product group and payback period on the CAC. .
  • Visual KPI Dashboard: Implementing a visual and intuitive dashboard for us to review with the founders on a monthly basis.
  • Revisited Cash Flow and Purchase Planning: reviewing cash flow dynamics to optimise marketing spend and inventory purchasing.
  • Actively advising on the balance between revenue growth, gross margin, CAC and cash flow.

Marketing ROI:

"10x Growth in 4 Years"

Results

03

The results of our strategic efforts have been remarkable:

  • 10x Growth in 4 Years – without adding any external capital
  • Founders with confidence to make growth investments as we helped them
    balance CAC, Payback period and cash flow planning.

 

Gross Margin:

Want to discuss how we can help you scale your DTC business confidently and profitably?​

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