Direct-to-Consumer Business
A client that operates a direct-to-consumer business focused on the fashion and accessory space.
The Client
Founded in 2021, this client operates a direct-to-consumer business focused on the fashion and accessory space.
The Challenge
Since its founding in 2021, our client’s business has seen unprecedented growth. While the management team was focused on building the brand and product development, they quickly uncovered the need for a stronger financial infrastructure, particularly for the current size of the business. The team needed support that went beyond transactional accounting or bookkeeping, they needed an outsourced leadership team member that could bring strategic financial initiatives to the table.
The Solution
After a short assessment, we laid out and implemented a plan to put in place foundational financial and risk management processes. The plan started with the creation of relevant financial performance reporting processes that could be easily consumed by the leadership team. In order to do this, we moved the accounting system from a basic out-of-the-box software to a more comprehensive solution.
Through our partnership, we uncovered a number of risk management concerns, including insurance and tax risks. We discovered a lack of sufficient business insurance based on the size of the business. To solve this problem, we created a comprehensive insurance program to cover inventory and product liability. To address the tax challenges, we implemented an external sales tax service to evaluate the jurisdiction in which the company needed to collect sales tax and manage the collection, filing, and remittance of taxes. In addition, we identified the need and implemented debt financing for working capital.
While implementing the various elements of the financial infrastructure, the TCRH outsourced CFO also became a trusted business advisor to the leadership team regarding operating and financial strategy and tactics. The TCRH CFO not only conducted important tactical updates for the business, but he also brought risks and opportunities to the business to ensure they would be well positioned for future success.
