When accredited UK Business Advisor Rich Olsen was contacted by a security business with cash flow issues, he rapidly unravelled a series of issues that were not just hindering growth, but threatening the future of the business and job security of every employee. The turnaround solution Rich put in place brought together financial and operational fixes that rapidly changed the viability and future of the entire business. Read on to find out what he did.
This client had a well-established business providing home and commercial security solutions, ranging from technical solutions such as CCTV and alarm systems to manned guarding. Sales were strong, but when they reached out for support, they were at a critical point with severe cashflow issues. A loss of approximately £100k the previous year meant that the entire business was at risk, along with the jobs of nearly 20 people.
Under immediate pressure to stabilise finances, the business owner was deeply concerned about the reaction of their bank, particularly as year-end accounts would show a significant loss. As soon as these accounts were filed, the bank was likely to require intervention that could mean increased costs, special measures and imposed solutions that took control away from the owner.
Trust & Collaboration
From the moment we got involved, everything changed. Rich’s successful track record with this bank meant that they could see the determination of the business owner to find solutions and turn his business around. While the turnaround time pressure remained, the owner maintained control while we identified next steps.
Our initial exploration of the financial and operational details quickly identified complexity and cash flow pressures creating strain on almost every part of the business. With an overdraft and invoice finance facility already in place, the company had begun to lean heavily on both. There were also operational and financial control issues internally: while the sales function was strong, the business was overtrading. It lacked the systems and process discipline required to manage growth sustainably. Areas such as invoice processing and job sign-offs had become pinch points, with inconsistent workflows affecting cash collection and financial clarity.
Financial Breathing Space
As operational clarity increased, clear priorities emerged. Rich developed a dual approach, focusing simultaneously on financial solutions and operational fixes.
A clear priority was to improve cashflow rapidly. We renegotiated terms with the finance company already in place. We negotiated improved terms with a new invoice finance provider, creating access to increased funds with better protection. We also secured a short-term funding solution to inject £25,000 of immediate working capital and prevent operational collapse.
The bank continued to be reassured by our involvement and were supportive of the use of overdraft facilities. These measures gave breathing space to our client, giving them time to implement internal process improvements.
Operational Fixes
We undertook a thorough business review, examining the company from top to bottom. This included financial processes, operational workflows, and internal structures. Some of the issues uncovered were relatively straightforward to fix, but had previously been obscured by day-to-day pressures and a lack of external perspective.
The entire process was rapid and highly focused, so a collaborative approach and trust between the business owner and Rich was a key factor in ensuring progress. Advised by Rich, the client was able to implement better financial controls, introduce clearer processes across operations and finance, and support a reorganisation of team roles. The entire team had greater clarity on roles and responsibilities and internal collaboration improved significantly.
While difficult decisions were needed at times, these enabled the business to function cohesively. Steps were taken to protect the workforce, to create operational effectiveness and to secure a solid base for future growth. With confidence restored in the company’s underlying systems, the business owner was able to focus on driving sales: this both played to his strengths and increased his motivation, ultimately improving customer relations and retention.
With sustainable growth restored, the company returned to financial health within a year, moving from a £100,000 loss to an £80,000 profit.
Don’t Delay: Ask for Help
A clear lesson from this business is don’t be afraid to ask for help. Seeking support wasn’t an easy step for a business owner who had nurtured his business but still reached a crisis point, even though sales were strong. Bringing in an experienced advisor who could see the bigger picture, identify root causes and act quickly was transformational.
Rich Olsen, UKBA accredited member, agrees: an early conversation can lead to interventions that create options but solutions can disappear if it’s left too late, “Operational and financial weaknesses can go unnoticed because owners and leaders are focused on the day to day functioning of their business. It’s amazing how mediocre processes can persist when you’re not paying attention. When you work with us, you get an external perspective that can spot things you might miss. When we understand what’s happening, we can recommend unique solutions. Our support goes beyond sourcing finance. When you work with us, you have access to hands-on support, strategic clarity and trusted advice exactly when you need it. For this client, the result was a complete and rapid turnaround, safeguarding jobs and restoring growth with confidence.”
We’ll help you transform your business from mediocre to exceptional. For a confidential conversation with Rich Olsen at UK Business Advisors about your business turnaround goals, please get in touch.