Situation

The company’s sales were 90% via Amazon. It sought to significantly diversify its revenue including a major expansion of the retail channel.

On the accounting and financial end, it needed accounting and financial management support so that it knew what its GP margin was by product and sales channel, what its inventory balance was, and how those metrics trended over time. Additionally they wanted a better cash forecasting and cash management system.

Actions

• Started doing payables and all monthly accounting activities
• Implemented rolling 13-week cash flow forecast and increased accuracy of timing of AR
• Implemented accounting procedures to delineate costs by sales channel to allow for a better analysis of fixed and variable costs and decision-making
• Added payroll and retailer invoicing to allow business owner to further focus on growing the brand
• Collaborated on budget forecasting and monitoring budget to actuals to drive management decisions

Results

With better information and more time, the founder/CEO successfully launched in Target, Grove Collaborative and natural sales channels. Revenue has diversified from 90% Amazon to a balanced split of 45% Amazon, 45% retail and 10% DTC.