brand x (nda) | From 3 month’s to bankruptcy.
To consistent profitable growth and stability.
How we flipped the destiny of a 7 figure Brand From the cusp of bankruptcy to well beyond safety with consistent profitable months.
Do to the nature of the info about to be shared (financial), we agreed to an NDA.
The brand is a multiple 7 figure, UK based DTC Brand that was flying in terms of top line revenue but suffering big losses in bottom line. They have great margins (70%) but quite simply and commonly focused on top line revenue instead of bottom line profit.


  • 1
    Save business from bankruptcy.
  • 2
    Identify what got them in this position in the first place.
  • 3
    Flip consecutive Losses into consecutive Wins and profits.
  • 4
    Provide clarity on profit and loss centres, KPIs to focus on and a guide to how the business works.
In order to recommend we must first diagnose. And to identify the root cause and not just the symptoms, we have to take a look under the hood. They say if you want to find the truth follow the money, best way to do this is to look at the Profit and Loss Statement.
P&L Analysis, Insight and Recommendations.
Answering questions and providing clarity around profitability, cashflow, opportunities for better efficiency.
After analysing 6 month and 18 month financial data from September 2021 to February 2023, here are 5 key insights and recommendations for improving efficiency to increase profits.

Over the last 18 months there is an equal split of profitable and unprofitable months for X, However 6 of these have come within the last 7 months which shows a trend that must be dealt with immediately.
Based on account balances (Circa 25K) and last 3 months profitability trend (-8K) brand x would run out of money in 90 days.
While Top line revenue has been steadily increasing over the past few months, which is a positive sign for the business.The cost of sales is also increasing, which means that the gross profit margin is not increasing at the same rate.
After reviewing the cost of sales we have identified 3 key areas that are causing the losses. These pose the biggest opportunities to immediately improve efficiency which will lead to back to more profitable months. These 3 key areas are:            
(1) Advertising spend efficiency
(2) Wages
(3) Sales Promotions
The biggest inefficiency that caused these losses was from advertising in-efficiency. A near doubling in ad spend M.o.M starting October 22 only paid off once (November 22 BF) otherwise it was one of the biggest reasons for a losing month.
by reevaluating ad spend. Advertising costs have been significant across the months, and in some cases, they surpassed the gross profit. Review the return on investment (ROI) of your advertising campaigns and consider reallocating resources to better-performing channels or campaigns. Not all months should be growth months, wind in the ego and listen to the market.
are a significant portion of the cost of sales. While promotions can be effective for increasing sales, it's important to ensure that they are generating a positive return on investment. We must consider evaluating the effectiveness of past promotions and adjusting future promotions accordingly. Performance marketing is great until it isn’t.
3) Overhead costs, such as wages
is a significant expense for the business. It may be worth reviewing these costs to identify opportunities to reduce them. For example, exploring more cost-effective staffing options, automation and AI.
4) Monitor the financials closely
and identify opportunities to increase profitability. The business has been operating at a loss for several months. While this may be normal for a growing business, it's important to take control of its destiny by always having clairty on its financial health weekly and monthly and then continually look for areas of improvement that increase efficiency.
5) Increase operational efficiency:
Operating profits have fluctuated, and in some cases, resulted in losses. Streamline operations to reduce costs and improve overall efficiency. This may include automating repetitive tasks, training employees to improve productivity, or reevaluating your supply chain to find cost-saving opportunities.
6) Focus on high-performing sales channels
UK Shopify Sales consistently contributed the most to the turnover. DE (Germany) and FR (France) Shopify sales have also shown good performance. Consider focusing marketing efforts on these channels to capitalise on their potential.
Bonus Action points 👇
7) Optimise carriage and distribution costs
Carriage and distribution costs are substantial and impact the overall profit margin. Look for ways to negotiate better rates with your carriers, consolidate shipments, or find alternative, more cost-effective shipping methods.
8) Improve inventory management
Materials purchased and inventory management have a direct impact on the cost of sales. Streamline your inventory management system to ensure you maintain an optimal stock level, reduce lead times, and minimize stockouts or excess inventory.
By implementing these recommendations, Brand X can optimised its operations, reduce costs, and increased profits while continuing to grow. It's crucial to continue to monitor financial performance closely and continuously adapt the business strategy based on the insights gained from the data.
  • 1
    Saved business from imminent bankruptcy (3 month runway).
  • 2
    Went from an average of -8K months to average +8K months.
  • 3
    Provided crystal clarity to brand owner on profit and cost centers, what levers to pull and what things to avoid in the future.
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