Case Study – Diamond Laser Medispa

by Nic McCondach
on 31 May, 2021
Nic McCondach

Diamond Laser Medispa, a Taupō Beauty Therapy business, was experiencing a number of issues when they approached The Admin Angels. Background

The business had too many staff, with staff members dictating their hours of work. Financial information was untidy and did not give owner Olivia visibility of creditors and underlying business performance. Olivia was rushed off her feet, highly stressed, and hadn’t drawn a salary for a number of months due to business cash flow issues. Her business was making a loss and her previous bookkeeper had misappropriated funds, so Olivia was very distrustful of the sector.

The Admin Angels Approach

To build trust with their client, The Admin Angels completed the first two years of weekly bookkeeping at the clients office. The first step was to streamline administration by reconciling the Xero files and implementing a paperless system. Once the files were up to date and re-coded (a huge job!), financial reports were produced to highlight the underlying business issues of overstaffing, overstocking, and unnecessarily high marketing costs. IRD non-compliance was also identified as an issue.

After these problems had been identified, solutions were put in place. These included:

  • reducing the team from four full-time and two part-time staff to four full-time staff with increased productivity
  • re-pricing products and services
  • reducing stock levels
  • improving supplier payment terms
  • reducing marketing spend to focus primarily on repeat customers
  • stopping capital expenditure
  • offering training opportunities to upskill staff
  • a small business loan to inject working capital back into the business that had previously been spent on capital development.

Along with these measures, IRD returns were filed correctly, and payment terms agreed. Custom financial reports were created so Olivia could regularly monitor her business performance and make adjustments when necessary.

Results

The approach taken by The Admin Angels turned Olivia’s business around. Now all bills are paid on time, all IRD obligations are met, and the team’s morale and productivity have hugely improved. Marketing expenditure is delivering regular repeat clients and the business is generating a healthy profit. Supported by financial reports created by The Admin Angels, Diamond Laser Medispa has gone on to win multiple national and international beauty therapy awards.

 

Most importantly Olivia now has found better work-life balance, and has regained her trust in the bookkeeping sector.

 

“I feel so lucky to have found The Admin Angels. They have worked tirelessly to help my business and have been absolute game changers. I see them as part of my team now – they are always in my corner, encouraging me and helping me to make the right business decisions. They have removed a huge amount of stress and turned my business around in just 12 months. Their dedication and drive is second to none, they truly are angels.” Olivia Blakeney-Williams, Managing Director of Diamond Laser Medispa.