client case studies

>90% of revenue transitioned from annual to multi-year contracts

More than doubled the funding long term technology investments

>50% increase in annual owner's distribution

Results: 

SourceUP quickly identified an opportunity to shift annual customer contracts to multi-year agreements. This improvement increased long-term revenue predictability and enabled the owner to focus on delivering exceptional customer service and new business development.

Improved Contract Terms:

Built on a combination of historical financials, current client contracts, and near-term sales pipeline, SourceUP developed a reliable, monthly budget that enabled the owner to fund necessary business investments and comfortably cover regular expenses—including monthly owner’s compensation at a consistent rate.

Detailed Budgeting Tool and Forecast Model: 

Through disciplined financial management and operational improvements, SourceUP’s solutions greatly improved cash flow predictability while increasing overall profitability.

Ultimately, the client was able to reliably plan, and increase, monthly compensation while supporting the needs of the business and customers. High-impact SourceUP solutions included:

Our Solutions:

A highly-specialized security consulting company approached SourceUP with an all-too-common challenge—uncertain owner’s compensation. Despite a roster of high-quality, repeat customers, this owner-operator struggled with cash flow predictability and was frequently pressured to forego monthly paychecks to support short-term business requirements.  

Reliable planning + increased monthly owner's compensation

All of this while also paying federal and state quarterly taxes; reducing stress at tax time

100% increase in retirement plan contribution 

36% increase in owner’s distribution

26% increase in Net Income

34% growth in Gross Margin

8% reduction in COGS by negotiating new relationships and pricing opportunities

18% increase in revenue

Results:

SourceUP reviewed the client engagement process to make enhancement in language that provided more protections for the business in regards to late client payments and session cancellations.

We developed behind the scenes processes that reduced the owner’s time commitment to invoicing, reconciling receipts, and following up with aged receivables.

Lastly, SourceUP implemented a new process for tracking contractor’s time that reduced the manual time tracking for the owner. SourceUP handles all of the financial on-boarding for new contractors allowing the owner to focus on delivering concise training that is focused on delivering the high level of customer service they are known for in the industry.  

Simplified Operational Processes:

Built on a combination of historical financials, current service price increase, an increase in service sessions for the month, as well as a new approach for pricing products, SourceUP developed a reliable, monthly budget that enabled the owner to understand how many service sessions that would need to be executed per month to delivery monthly revenue goals, as well as taking it one step back to understand how many pipeline clients would need to be sourced to convert to sessions. This clear goal allowed the owner to have a session goal, rather than focus on an overwhelming revenue number. It was a guidepost allowing her to increase compensation for her and the team, focus efforts on the sales process, marketing efforts, and delivering an amazing product. Clear, detailed planning efforts built on data and facts enabled the owner to confidently manage the business with a forward-looking, growth mindset. 

Detailed Budgeting Tool and Forecast Model: 

Far too many business owners either underprice their offering or fail to increase prices as costs increase or value delivered increases. SourceUP not only encouraged its client to charge a fair price, but also provided data and justification to support the client’s conversations with its customers. The resulting increased profitability traveled directly to the bottom line, allowing the owner to increase her compensation, increase compensation to the team, while also planning for future taxes associated with the business. High-impact SourceUP solutions included:

Our Solutions:

A growing, high-touch home organizing firm engaged SourceUP to improve profitability and cash flow generation. Tools had been implemented such as a price increase and products at wholesale, but there was still room for improvements in profit growth. A detailed evaluation of the client’s business combined with an assessment of the competitive landscape led SourceUP to help implement pricing changes to products sold as well as maintaining a service price increase that assisted in profit growth.  

Improved profitability + cash flow generation

Growth led to a new building that showcases the design and aesthetic of the business

SourceUP implemented a 401K Plan that improved benefits package for attracting employees

Team has grown from part time contractors to a team of eight full time employees

Revenue has increased 10x over past 5 years.  

Results:

SourceUP drove a fundamental change in the business cash flow by building a payment schedule that matched with the flow of the project reducing the gap between client purchases and payments from the client. The business stopped being a bank for their clients and it fundamentally changed the security for the business to make operational investments and create pricing power. Additionally, this allowed the business to gain trust with their clients by providing a regularly updated budget to the clients on their design projects. 

Optimizing Cash Flow Management:

SourceUP has been pivotal in creating and improving processes as the business grows and changes. Initially doing some very simple operational changes saved time and efficiency including eliminating all paper checks, electronic time tracking software which allowed for data analytics, and paying contractors on a consistent weekly basis.

The resulting impact created high levels of trade partner loyalty and retention—a significant competitive advantage in the home remodeling industry.

Additionally, SourceUP automated the master services agreement for electronic signature which reduced client confusion about expectations and payment terms. 

Building Operational Processes:

This business has consistently maintained an annual budget and an updated forecast when there are changes to new product launches, people plans resulting in compensation changes, and pricing changes. Having a meaningful monthly budget allows the owner to concentrate on identifying and courting the right client for the business resulting in larger sales, higher margins and overall job satisfaction. The budget process is a deliberate process that encourages the combination of a high-level strategic blueprint along with clear tactical activities that build an actionable plan. This data driven approach allows the owner to focus on a growth mindset determining how to best position the people in the organization to stay in their zone of genius as well as maintain a service level that is expected with this luxury design experience.

Detailed Budgeting Tool and Forecast Model: 

Offering one of our most holistic solutions, SourceUP imbedded itself in her business, taking over all finance and accounting activities while freeing the entrepreneur to focus solely on her core talents. Additionally, becoming part of the business enabled SourceUP to identify and capture other value creating opportunities such as quoting and pricing optimization, treasury management, human resources, and talent management. Education is a large part of SourceUP’s value system. We want to build business acumen so that owner’s feel empowered to navigate the decisions on their own with confidence.         

Our Solutions:

A talented interior designer had built a solid business based on extraordinary design talent, grit, and hustle. However, her business approached a ceiling as she found herself frequently pulled into activities distracting her away from what she does best—designing spaces, managing, and coaching designers and tradesmen, and ultimately, winning new business.
 
It is common for the owner to wear multiple hats; managing the fundamental, essential business activities such as financial planning, accounting and transaction management, cash conversion, and tax planning. Typically, these activities are unfamiliar skillsets to a new entrepreneur. Not only did these activities take this designer’s time, but they absorbed a disproportionate amount of energy and headspace, creating additional headwinds to an otherwise growing business.

Exponential revenue growth + Cash flow creation for long term sustainability