Case Studies

A company near Newmarket approached us during the June period of 2006. The individual concerned, was very worried because his financial situation was desperate. His bank was threatening legal action against him and was in the process of putting stops on his account. In order to keep his business afloat, he and his partner had sunk every last penny they could borrow into their business.

The owner approached us looking for a business angel. It soon became apparent that borrowing more money or finding a business angel for him would not solve his immediate business problems. Cash flow management was the key to solving many of the business related problems. Like many small businesses, this business was owed money that it was finding hard to collect from its customers. We agreed to get involved and found a way of resolving the companies cash-flow problems. Thereafter, we were able to work with the companies bankers and to turn the situation around.

During Christmas of 2006, we were able to find money and investors to fund a project with a total net worth of £400,000.00. The company concerned has made a substantial turnaround since we became involved and will soon realise its first profitable year. Their bankers have been impressed with the turnaround and generally see our involvement with this company as very positive.

We did not get involved for the quick buck. We analysed the problems, formulated a strategy and worked with our customer for over a year. The customers business has enjoyed a recovery and this has resulted in our ability to find funding from the private sector and the banks.

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Under 6 Ltd. Case Study

Background

As a business “Definitley  Baby” were in very serious financial trouble and as a sole trader, we were on the verge of business and personal bankruptcy. We had huge debts as well as mortgage arrears on our house. We had approached a number of business angel brokerage firms without success and our situation was becoming more serious and desperate daily.

We had approached our local Business Link, the North West Development Agency and anyone else that would listen to our problems. It appeared to us that there was no help available from anywhere.

Overview

We placed an enquiry on the Angel Startups website and they agreed to an initial no obligation meeting. Initially, Angel Start Ups informed us that we had left things too late and they did not want to pursue the matter with us, however, we were very very desperate. Unless we got help from somewhere, we would have lost our house, our business and everything else we owned. 

Angel Start Ups agreed to a second meeting at our shop. When Angel Startups arrived at our shop, they proposed significant changes to the way we were running our business and initially we strongly disagreed.

Angel Start Ups came up with a business strategy, which we did not understand, however, we were in no position to argue with. Initially, we were both stubborn and did not fully cooperate with them. Furthermore, all of our “friends” were informing us that they did not believe that what Angel Start Ups were doing would yield a positive result. As a result, Angel Startups informed us they could not help us, unless we were willing to help ourselves. They explained to us, that their process was slow and methodical. They said “We had to learn to walk before we could run”. 

Strategy

Angel Start Ups examined the way we were doing business and came up with a strategy to turn the business around. They advised us of the following shortfalls:-

• Form a limited company and rebrand
• Properly manage debts and cash flow
• Resolve any further financial issues
• Locate potential investors
• Refurbish the business premises
• Work to change peoples perception of the business
• Create a website and rank it on the internet.

Implementation

Angel Start Ups have been dealing with Claire and Wayne for several months and we can now see that their strategy is starting to yield tangible results. Although the business is showing positive signs of improvement, there are still hurdles to overcome.

An investor has agreed with Claire and Wayne to invest in their business.

Angel Start Ups have formed a limited company, which has now been turned over to Claire, Wayne and the investor.

The new website is up and running and is currently receiving orders from it.

The shop has been refurbished and is a lot more appealing than it was.

By their own admission, Clare and Wayne have had their fair share of disagreements with Angel Start Ups regarding the way forward, both sides have always been able to compromise and come up with  commons goal for the business.

Claire and Wayne would recommend Angel Start Ups  as they have transformed the business from the point of bankruptcy.

The business is starting to produce a healthy turnaround and is now following the strategy proposed by Angel Start Ups. All concerned are looking forward to a brighter future.

Visit the Under 6 website at http://www.undersix.co.uk or contact Clare and Wayne on 01782-267150 for all of your baby needs.