A retail furniture store that has been in business for over 50 years, recognized the changes in their market and engaged William Heller Associates to assist them in their development of a plan to expand their business. Working with management a plan was developed to open a new retail furniture store that had brand recognition. After studying various manufacturers, the demographics of the market, and the availability of management, the principals opened a La-Z-Boy gallery in the Mid-Hudson Valley area of New York.
Due to the constant monitoring of the business, including its marketing and operations, the store in year one exceeded all expectations in terms of revenue and profitability. Using this experience as a strategy the principal has now expanded to three stores doing approximately $11 million in revenue per annum in revenue.
In addition to providing the budget, cash flow analysis, financial reporting, and tax planning, we assisted management in negotiating leases, bank financing, and the purchase of a building for one of the new locations. The acquisition of this new building and the site evaluation has provided management with a reserve for future cash flow needs as the building has appreciated in value in two years from $2 million dollars to over $3.5 million dollars.
- Date: January 24, 2019
- Category: Accounting, Consulting