Welcome to our Case Study Of The Month, showcasing clients who have enlisted our help to turn their business around. This Case Study focuses on a Sydney Civil Engineering Company where we significantly reduced the debt and restructured business operations for sustainable business growth. Read how we made this happen.
My Business Path worked closely with the business to see
- debt reduced from $950,000 to $440,000 for a saving in excess of $500,000
- secured creditors and employee superannuation paid out
- invoice factoring facilities setup with new accountants brought in
- a successful business restructure for smoother and more efficient financial and operational dealings in the future
- business continue trading
My Business Path's role in relation to the business was to
- assess the true financial position of the company, including the valuation of plant and equipment
- put a Business Structure into place
- negotiate with creditors to reduce and repay the debt and pay out employee superannuation
- set up systems to avoid returning to previous financial difficulties
The Financial Situation
This Sydney Civil Engineering Company had been operating for seven years, manufacturing and installing street signs for Councils, Government agencies and construction companies across Sydney. As a family owned and operated company, they bought their family values and ethics to their services, focusing on high quality work to minimise errors and risk while building great relationships with their customer base. They came to My Business Path
- facing HR issues of completing tasks within the hours available while making sure the work of employees and contractors were paid by clients and covered by the job
- possibly trading insolvent but had incredible potential with continued growth due to their reputation and quality of work
- where cashflow and finance management had become significant issues, largely due misunderstanding their true financial position while inaccurately pricing jobs
- with trade creditors and tax debt totalling $950,000
Challenges Facing The Industry
The limits of civil engineering keep extending as the tallest buildings get taller, tunnels and bridges become longer, and general construction becomes bigger. This occurs within a cost effective industry integrating construction and renewable energy sources into the surrounding environment. The new is built into the old through the preservation of heritage or utilising the latest in technology and equipment to complete the project as efficiently and cost effectively as possible, while keeping to the highest in work health and safety standards.
Uniting skills and delivering on the project while the everyday life of traffic and city continues around the construction site creates high stake challenges. Infrastructure in disrepair, old age or poor design and within budget constraints often mean civil engineers must do more with less, in an effort to complete the job on time. Risks are tremendous, where outlays in durability, safety and technical complexities vie alongside the construction site during and after construction, for a high pressure situation. Design or execution errors come at a significant financial and human cost. Rigorous standards of licensing requires a degree with several years of logged experience before engineers become fully licensed.
A Background In Civil Engineering
As one of the world's oldest professions - no less important today as it was in Ancient Egypt - civil engineers are responsible for the design of bridges, buildings, transport systems and infrastructure; helping cities meet the challenges of a new century and population growth while keeping the area liveable. Civil engineers consistently face challenges in geomechanics, project management, complex systems, transport, environmental and structural engineering.
The people are real. The businesses are real. My Business Path designed a tailored solution that worked.
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