Bailey Dean supported the owner of a franchise territory that had been running for six months. They had seen significant growth generating a six figure return in that time and growing the team from a single member of staff to a team of thirteen.
During the initial growth stage, the business had won significant size clients in comparison to the size of the business that was unable to pay on the regular direct debit schedule and had to go through a 30 - 60 day BACS payment schedule. This meant that the company was beginning to feel the strain of cash flow as every month although they were making money, the money didn't enter the account until after the end of the month creating a cash gap of 34 days.
The individual with who Bailey Dean had previously done sales training systems work was aware of our ability to support in these situations and therefore approached one of our consultants who was able to begin working on the issue.
Our consultants started by analysing the financial position of the business to determine how severe the cash gap was before starting to implement strategies to resolve it. These strategies included favourable terms for early payers and adjusting payment terms for suppliers. Within seven days of speaking with one of our consultants, the franchise territory owner was able to reduce his cash gap from 34 days to relieve the stress he was feeling and the anxiety this was having on him.
Bailey Dean was then able to restructure his finances so that more of his recurring payments came in early while payments for stock went out later meaning that he entered into a negative cash gap and was able to rely on the money coming in before it went out and he was able to stop putting money in to cover the 34-day cash gap he was experiencing.
This particular franchise owner was a new franchisee for a national franchise chain. After coming out of a 25-year career in industry he spent a significant amount of money buying into a franchise.
Having never run his own business The Franchise owner was looking for additional support while helping him grow his business and regain his original £25,000 investment as fast as possible. Although he did have support from a support office he was looking for outside support to help him in the areas that the franchisor was not able to support in the same way for example having never done any sort of sales before The Franchise owner was looking for some additional sales training.
The Franchise owner was also looking for strategy support, how he should be setting his yearly targets and goals and when should he be bringing on staff.
The franchise owner was concerned about being tied into a long contract having just invested a large sum into his franchise business. The major concerns was how this would affect his cash flow. Bailey Dean were able to alleviate these concerns by offering an ad hoc on demand service, this gave The franchise owner the ability to book anywhere from an hour to a day's work so that he was able to get the support he needed as and when he needed it.
This started with a days strategy and sales session to help him set his targets for the first ninety days so that he was able to walk away not only with his goals written down but a strategy of how to achieve these with considerable ease.
By having a flexible approach to how Bailey Dean approached the challenges The Franchise owner was able to be assured that there was direct on demand support for him as and when he needed by a large network of individuals that was focused directly on helping him grow his business rather than being side tracked by the overall franchise company.
The Franchise owner was able to step away from that first session with the knowledge of what he had to do to achieve his goals. As with all new businesses, The Franchise owner felt alone and overwhelmed by the prospect of starting a business, Bailey Dean was able to give him the reassurance that he wasn't alone and that he had a source of support as and when he needed it.