Client Story: From $1 million in debt to a $15 million business

The problem: A business in need of a turnaround

Windows R Us supplies and installs windows on commercial and high-rise buildings across Australia. The kind of specialist, high-stakes work you see on major developments around the city. It's a family business, run by a brother and sister team. Michael Fox is the expert in the field. Debbie runs the books. What they lacked was an experienced business advisor and skilled accountant in their corner.

Before they came to BlueRock, the business was at breaking point. The business was turning over around $4 million a year, but construction is a highly regulated, award-driven industry, and labour costs stack up fast. Wages accounted for almost 100% of the business’s revenue, which left little room to absorb overheads, tax and super obligations.

On top of this, the business had succumbed to 60 day terms on receivables.

By the time Michael and Debbie came to BlueRock, the business had accumulated over $1 million in debt.

They needed more than a quick fix. They needed a completely different way of running the business, and they needed positive but real guidance.

The solution? A successful business restructure followed by ongoing support and advice

BlueRock Accounting Director Chris Foster and the team started with a formal review of all business practices.

Working alongside BlueRock Law's insolvency and restructuring experts, they started by restructuring the business, moving the operating assets into a new entity so the business could keep trading, retain its people and address its existing financial pressures.

"We only wanted to do that once," Chris says. "You don't get a second chance at this. So, we had to set it up properly from day one."

The formal review showed that some jobs were not being priced to fully reflect their labour and delivery costs, so we helped Windows R Us sharpen their quoting process and make more informed decisions about which jobs to take on.

From there, BlueRock’s business advisory team put strong financial systems in place, including cash flow forecasting, monthly meetings and clearer reporting on job profitability, with a focus on margins and better job quoting.

The business stabilised and started to grow again, supported by BlueRock’s multidisciplinary model:

• BlueRock Accounting and Advisory handled monthly reporting, forecasting, tax and ongoing strategic advice.
• BlueRock Law managed the initial business restructure.
• BlueRock Insurance provided business insurance cover as the business scaled.
• BlueRock Commercial Finance Broking arranged an overdraft facility and asset finance to support cash flow and equipment needs as the business grew.

Chris Foster also ran a strategy day with Michael and Debbie to map out where the business was headed, something they'd never had time or headspace to do properly. The conversation considered their personal goals as well as the strategic direction of the business.

The BlueRock difference

What made the turnaround stick was trust and human-led advice.

The BlueRock team met Michael at his home, out in Berwick, for that first meeting. Over time, the relationship developed into a close and trusted partnership.

For Chris and the team, the work went beyond reporting on the numbers. It meant taking the time to understand how Windows R Us operated, what drove its cash flow and what Michael and Debbie wanted the business to make possible in their lives.

For Windows R Us, that meant understanding the realities of a labour-intensive, award-driven industry, and building a financial model that could genuinely support it.

The outcome: A thriving business built on sustainable growth

The business recovered fast. Within months of the restructure, it was back up to $4 to $5 million in revenue, helped along by Michael’s deep relationships and reputation in commercial construction. Since then, it's kept growing.

The business now turns over close to $15 million a year, with a net profit margin in the order of 12 to 15 per cent. It also welcomed around 50 employees following the acquisition of a competitor who was themselves facing financial issues, bringing the team to close to 100 people. Where staff costs were once the business's biggest threat, the business is now structured to support a much larger team sustainably.

Growth is still front of mind, but it's growth on their terms. "We'll always be looking 12 to 24 months ahead now," Chris says.

Debbie is proud of how far the business has come and credits the close relationship with BlueRock as part of that success.

"Reflecting back on it all, I am so proud of my brother and what he has learnt about business over the past couple of years, and how his mindset has grown and been challenged. BlueRock, especially Chris and Chiara Xerri , have played a massive part in the success of the business. I'm so proud of Michael and so happy to see his business kicking ass, which is what he has always wanted," Debbie says.

Better Business, Better Life. That’s our ‘Why’.

We’re not just passionate about helping people operate and grow a great business, we help our clients enjoy the adventures and rewards along the way.

For Michael and Debbie, the turnaround created more than a stronger business. It gave them greater confidence in their decisions and more capacity to plan ahead.

Chris says, "About 12 months in, there were moments where I worried the business might fall back into old patterns. Old habits die hard. But the more you understand a business, what actually drives its cash flow, what makes it tick, the more you can help it break that cycle. What I'm most proud of with this one is simple. We took a business that didn't work, and turned it into a business that works."

Get in touch with a business advisor today

Facing financial pressure, or ready to grow but not sure how to do it sustainably? Get in touch with the BlueRock business advisory team via the form below.