Business Case

Corinudenium Manufacturing Pty Ltd


A lucrative business opportunity saw Larry a local WA Tradesman start up a licensed manufacturing and distribution business in the construction industry. Larry set up shop, borrowing money against his family home, neighbor and an ex-employee.

With enthusiasm he started manufacturing and selling the products. The brand was quickly accepted and the business turned over a million dollars in revenue within a short space of time.

This, however, quickly turned around and the revenues didn’t seem to return any profits, instead the business debts started surmounting uncontrollably. In its third year the accumulated loss and business debt was 75% of its total revenues.

This, on investigation, was due to lack of appropriate planning to enter a new market and the sheer depth and breadth of the product offering which affected all areas of the business significantly:

  1. Quality of products
  2. Wastage of products
  3. Stock Control
  4. Raw materials
  5. Pricing
  6. Cash Flow
  7. Sales and Marketing
  8. Variable costs
  9. Staffing and Salaries

The business, despite a good initial market reception was in damage control before it was given an all out go, due to the lack of strategies, systems, procedures and control mechanisms which are essential to success.



Immediate financial action was required to avoid the loss of the business and then look at future planning.

Initiatives were to:

  • Invite another investor party to relieve the business of its critical debts and release some cash into the business for the short term
  • Upgrade handling and control of cash
  • Establishment of the exact financial position

Leaking profits and cash were identified and plugged immediately making a measurable difference in the bottom line and also paid for the much needed third party consultant resource to properly align the business to its owner’s goals.

Whilst the business was given a life line and handling of the cash was monitored closely, work could commence towards fixing the critical elements of the business to ensure its success moving forward starting from:

  • Core product competences
  • Stock Control
  • Manufacturing practices
  • Product packing and delivery
  • Technical competences
  • Pricing
  • Raw Materials sourcing
  • Cash flows

The business now has a strategic business plan, is out of debt and would be considered moving into its “IMPROVE” phase from a critical “RESCUE” phase.