Case study 1: transforming a cafe into a thriving business

“The Bean Scene” was a well-loved local cafe, renowned for its high-quality coffee and breakfast offerings. However, owner Sarah was struggling with mounting debts due to increasing ingredient costs, rising competition, and the lingering economic effects of the COVID-19 pandemic. Despite working extensive hours, her business was facing closure.

Through SBR, Sarah collaborated with a financial advisor to develop a structured restructuring plan. This included renegotiating supplier payment terms, optimising the menu to reduce waste, and implementing a more targeted marketing strategy. Additionally, SBR allowed her to consolidate her debts into a manageable repayment structure while wiping tax defaults from her business records, ensuring no delinquency was carried forward on her business credit file.

As a result, “The Bean Scene” is now experiencing substantial growth. Sarah has significantly reduced her stress levels and has even hired an additional barista to accommodate increased customer demand. The SBR process provided her with the financial stability needed to refocus on her passion for serving quality coffee to the community.

Case study 2: strengthening a construction business

Mark’s construction company had historically been profitable, but a combination of unexpected project delays, escalating material costs, and late client payments led to a critical cash flow crisis. Concerned about the viability of his business and his responsibility to his employees, Mark sought a solution.

Through SBR, Mark was able to systematically address his financial challenges. His financial advisor assisted in negotiating structured payment plans with creditors and identifying operational efficiencies without compromising service quality. The process also helped him refine his project management and bidding strategies to prevent similar issues in the future. Importantly, the SBR process cleared his business of any tax defaults and ensured that his business credit history remained unaffected by past financial difficulties.

Today, Mark’s construction business is more resilient than ever. He has secured several new contracts and invested in upgraded equipment, ensuring continued success. SBR not only preserved his business but also strengthened it by establishing more robust financial and operational systems.

Case study 3: revitalising a retail business

“Fashion Forward,” a boutique in a regional town, was struggling due to shifting consumer preferences and increased online competition. Although owner Emily had a strong passion for fashion, she lacked the business expertise to effectively navigate the evolving retail environment. Declining foot traffic and ineffective inventory management further exacerbated her challenges.

By engaging in the SBR process, Emily received tailored business advice and support. She developed a new e-commerce strategy, optimised inventory management processes, and successfully renegotiated lease terms with her landlord. Additionally, she secured a small business loan to enhance her online presence and marketing initiatives. SBR also removed any tax defaults from her business records, ensuring a clean slate without any ongoing credit file delinquencies.

As a result, “Fashion Forward” is now thriving both online and in-store. Emily has cultivated a loyal customer base and is even planning to open a second location in a nearby town. The SBR process empowered her to adapt to industry changes and strategically expand her business.

Key takeaways from these success stories

• • Early intervention is essential: seeking assistance at the earliest signs of financial distress increases the likelihood of a successful restructuring.
• • SBR encompasses more than debt reduction: the process facilitates sustainable business growth and operational efficiency while ensuring tax defaults are removed and business credit files remain unblemished.
• • Professional guidance is invaluable: engaging a qualified financial advisor ensures informed decision-making throughout the restructuring process.
• • SBR can lead to positive long-term outcomes: many businesses that undertake restructuring emerge stronger and more financially stable.

Take the next step towards stability

If your business is facing financial challenges, do not navigate the difficulties alone. Small Business Restructure may provide the support and strategic direction needed to regain financial control and achieve sustainable success.

AVA Advisory provides expert guidance and support to help small business owners and directors set their businesses up for success.

Get in touch with us on 1300 181 220 to schedule a confidential and obligation-free consultation or click here to lock in an online meeting via our bookings platform.