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  • Writer's pictureTroy Schoenfisch

Case Study - Growth Planning & Restructuring

Today I'm coming to you from in front of Constitution Hall in Philidelphia, PA.

I'm back in America again to continue helping businesses to access a whole range of funding and investment, to help grow their businesses within Australia and launch into overseas markets. Today I want to share a case study with you of a client I have been working with over the past year.

Steve* has been designing & manufacturing a metal products business for a number of years and has 5 employees, as well as himself, working in the company.

Steve's accountant recommended that he have a conversation with me about accessing funding to purchase equipment and assist him to expand his operations into overseas markets.

Upon review of his structure, we found that there was definitely a need to separate his IP from his operating company for risk minimisation purposes (if something goes wrong in the business & the company is sued, the IP could be assigned a value & be at risk of being taken by the person making the claim - which could mean the whole business is at risk). As Steve had spent significant time & money developing these patented products, we found government rebates that would reimburse him for some of these costs.

There were multiple avenues for growing the business overseas & we sought out funding to assist him in this process. He was looking at potentially getting an overseas partner or other possible investment & revenue streams for this process. The outcomes marketing process undertaken meant this wasn't necessary immediately, but there are structures in place now in case this is pertinent at a later date.

In addition to this, we restructured the financial records and reporting system, accurately reflecting the amounts invested into the development of the product as an asset, rather than utilising these costs to minimise tax. This is a discussion to ALWAYS involve the company's accountant with, as there are tax implications, but is a significant factor if you are looking at accessing funding or investment to show that you have been developing an asset instead of incurring massive tax losses - would YOU invest in a company that has no assets & massive tax losses???

Through this process, we determined that he was eligible for additional funding & rebates that had previously not been accessed for money ALREADY spent;

There are also industry specific funding opportunities

By accurately showing the amounts spent on product development as an asset on the Balance Sheet & splitting the relevant costs for the above rebates on the Profit & Loss, accurately reflecting Aus & Overseas income & expenses from each other, consolidating a number of small accounts & showing operating & administrative expenses more clearly, Steve had an completely accurate & easy to understand set of reports for himself and potential investors.

It is also important to note that separating expenses that are eligible for government rebates into their own accounts makes the application and acquittal process (reports showing proof of how you spent the money) a LOT quicker & easier, which increases the chances of having further questions asked, as well as saving time & money with engaging an accountant or bookkeeper to assist in going through records to separate the expenses & provide this proof.

The full review of the business plan & restructure of these reports resulted in the following outcomes within the first 6 months;

  • 100% increase in revenue (Year on Year)

  • Export Market Development Grant - $15k+ towards overseas marketing costs

  • Wage subsidies - $15k+

  • Research & Development Tax Incentive - $25k+ for prior year development costs (including materials, Wages & Superannuation)

  • Funding approved for purchase of equipment $350k+ (resulting in cost reduction of $100k pa & increasing revenue by $500k pa)

This is proof that the "Crescendo Strategy" works to assist in the preparation of business plans, investment plans, budgets, timelines & all the other documentation required to ensure your business is prepared to apply for funding and investment - as well as working with you to find those opportunites in the first place.

Follow this link for more information on how the "Crescendo Strategy" process can assist you.

Reach out now for a chat to investigate opportunities for expansion into overseas markets and with support in preparing to fund the process -


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