How an Outsourced CFO Helped Fuel This Franchisee’s Growth
With DS+B’s support, this national chain franchisee expanded from two to 10 stores within three years.
One of our national chain franchisee clients expressed a desire to grow after owning two restaurants for more than a decade. Over the next three years, this client expanded to 10 stores and is now thinking about handing over the reins to the next generation. Here’s how DS+B helped to make it happen.
In 2017, business was going well for the franchisee organization: the two stores were making a reliable profit, and the franchisee was in the franchisor’s good graces. Nevertheless, the owner felt like the organization’s inefficient processes were holding it back, and he didn’t have time to fix them. On top of this, the organization handled all of its own finances, and was simply running the business out of its bank account.
Later that year, the owner and his two daughters (members of the ownership team), had an opportunity for growth that would involve acquiring additional locations. However, with their current financial and back-office systems, they had no way of knowing for certain if it was a good investment, or it was even feasible to take on more stores.
Financial and Back-Office Solution:
Together, we analyzed the franchisee organization’s key ratios and financials. Using these analyses, we created detailed financial projections, which enabled the owners to clearly assess the potential acquisitions and determine if they were good investment opportunities. The deal checked out.
Then, we developed a pro forma that showed how much and how quickly the organization could feasibly grow, as well as how the growth could impact key ratios. This insight proved essential to gaining lending approval, and the acquisition moved ahead.
In light of the new growth, the organization needed an efficiency overhaul. We stepped in to manage the organization’s day-to-day accounts payable and bookkeeping with CFO+, our turnkey solution for ramping up accounting back-office needs and promoting efficiency across all operations. This allowed the owners to devote time to strategic planning and bring their new management teams up to speed.
Within 24 months of our CFO+ implementation, the owners acquired two new stores. Twelve months later, they bought a six-store patch of restaurants. Today, the franchisee organization is thriving with 10 stores under its management umbrella. Along the way, we’ve scaled our outsourced accounting services to support—and further—our client’s growth. Now, the father is working with us to create a succession plan for the future.
With our help, you too can have confidence in your numbers, a scalable back office, and the ability to make informed decisions about growth.
Many business owners reach a point where managing the financial side of the enterprise becomes overwhelming. When this happens, it can be difficult to strategically manage your business.
The thought of adding a CFO can seem like a financial burden. But here’s the thing: It doesn’t have to be.
That’s why DS+B has developed a service we call CFO+. As the name implies, it’s designed to add what a chief financial officer’s role would bring to your company. By leveraging our team of accounting professionals and CPAs, we create an outsourced and cost-effective “back-office” accounting solution that’s perfect for fast-moving business leaders and entrepreneurs. Best of all, CFO+ can be scaled and customized to your business needs as they evolve.
Contact us today to learn more, and see how you can reduce costs, avoid staffing headaches, and gain back the essential time you need to focus on your business.