Client: Divvy Parking - an Australian Parking Marketplace Start-up
The client, a start-up operating a parking marketplace in Australia, was growing users, parking space inventory and revenue at an enviable rate. Divvy had received seed funding from a number of high net worth individuals and had solid traction in the market working with large property owners to resell vacant commercial car spaces to the Divvy user base.
The board and founders wanted to put the “foot down” and accelerate inventory and user growth exponentially. In order to do this, they needed a long term financial plan and strategy, as well as a compelling growth story to sell to potential investors.
The company had no long term financial or business plan.
James was engaged as CFO two to three days a week. He worked onsite with the management team and board to formulate a long-term plan and strategy. The long term financial model was used to negotiate a valuation and investment deal with NRMA. James was part of the team that sold and negotiated the deal with the NRMA deal team (NRMA – finance & strategy team, CFO and CEO), the deal went through in October 2016, as reported in the Australian Financial Review.
Once the long-term plan and strategy was formulated, James lead a budgeting and planning project to align the longer-term direction into fiscal year targets across sales, marketing, product and development. These financial and operational metrics such as spend vs budget, cost per acquisition, new spaces / new buildings, revenue and users were reviewed monthly and discussed in management meetings and communicated to the board.
James managed the internal accounts team and drove process efficiencies and governance improvements within the organisation.
The investment deal went through allowing the company to scale their sales team and aggressively build out their software platform, to capitalise on their first mover advantage. The deal not only gave them the financial clout to invest in headcount, but increased their brands market credibility. The deal has created positive publicity and awareness, increasing the sales pipeline and future revenues.
The clear strategy and long term plan has focused the team. Metrics and targets are clear across the management team, allowing for focused discussions around performance and progress towards goals. The business is taking steps towards profitability and the businesses financial valuation continues to grow.