Short Par 4 is a fairly new startup
company. They sell subscription
boxes for the price of $49.95 per
box. These boxes contain men's golf
apparel products that are actually
worth $100 in retail market.
Since the selection of stylish golf
apparel was chosen with great
taste, consumers were quickly
falling in love with Short Par 4's
products.
Case Study
Number Tells Stories
Every company wants to grow their profitability. However, some small businesses fail
due to unmediated rapid growth. Our case study will show how implementing actionable
and timely financial data can actually save a company such as Short Par 4.
Prior to DeepSky’s involvement, Short Par 4 was teetering on the verge of bankruptcy.
But now its profitability has monumentally increased. In our case study, we will analyze
Short Par 4's basic business problem as well as examining all proposed solutions along
with supporting evidence.
0%
Growth in Revenue
Build Systems
That Create Freedom
In fact, a number of customers posted videos to Youtube of themselves unboxing the products.
This, in turn, exponentially increased the number of subscription boxes sold. As a result, Short
Par 4 has successfully built its brand and established its foothold in the market.
Rapid growth, however, turned into a "growing broke nightmare" for this small business. Its
management team was so focused on being able to provide top quality products in every box
that they ended up completely overlooking the need for generating a healthy profit margin
aiming at the survival of the company itself. Both because of, and in spite of, the company's
rapid growth, they actually lost money on each box that was sold. The more product that they
were selling, the more money they were losing.
In fact, to make matters even worse, the management team was unable to identify the
problem, let alone how to deal with it. That's why Short Par 4 enlisted the expert help of
DeepSky.
DeepSky started to collaborate with Short Par 4 in 2016. The task was to identify the root
cause of their unprofitability. The root cause of such stemmed from the fact that the only
way to acquire strong financials is to base them on an even stronger system.
As is the case with many startups, the management team had been mainly dedicated to the
growth of the business, and totally neglected the importance of the company's basic
infrastructure. Because of – neglect, they didn’t realize just how unprofitable they had become
during their rapid growth. The solution to Short Par 4’s financial woes was to improve the
company's infrastructure while also building more sound financial reporting.
The
Aha MOMENT
With DeepSky's help, Short Par 4 came to realize that each
and every number is telling a story. Once they had a much
clearer insight into their company's numbers, they started
digging deeper into specific ratios of growth to profits.
From there, they quickly discovered - the issue was an
“above the line” problem.
This realization was actually the turning point for the
company. DeepSky recommended Short Par 4 control their
losses by making their “cost per box” a trackable KPI.
Tracking it cost-effectively meant controlling their “above
the line” issue.
Everything started to get even better when DeepSky began to calculate a specific number that represented the basic cost of every box. That one particular number was successful in saving the company from bankruptcy while turning those amazing popular boxes into profitable boxes.
SHORT PAR 4
Short Par 4 is a fairly new startup
company. They sell subscription
boxes for the price of $49.95 per
box. These boxes contain men's golf
apparel products that are actually
worth $100 in retail market.
Since the selection of stylish golf
apparel was chosen with great
taste, consumers were quickly
falling in love with Short Par 4's
products.
Case Study
Number Tells Stories
Every company wants to grow their profitability. However, some small businesses fail
due to unmediated rapid growth. Our case study will show how implementing actionable
and timely financial data can actually save a company such as Short Par 4.
Prior to DeepSky’s involvement, Short Par 4 was teetering on the verge of bankruptcy.
But now its profitability has monumentally increased. In our case study, we will analyze
Short Par 4's basic business problem as well as examining all proposed solutions along
with supporting evidence.
0%
Growth in Revenue
In fact, a number of customers posted videos to Youtube of themselves unboxing the products.
This, in turn, exponentially increased the number of subscription boxes sold. As a result, Short
Par 4 has successfully built its brand and established its foothold in the market.
Rapid growth, however, turned into a "growing broke nightmare" for this small business. Its
management team was so focused on being able to provide top quality products in every box
that they ended up completely overlooking the need for generating a healthy profit margin
aiming at the survival of the company itself. Both because of, and in spite of, the company's
rapid growth, they actually lost money on each box that was sold. The more product that they
were selling, the more money they were losing.
In fact, to make matters even worse, the management team was unable to identify the
problem, let alone how to deal with it. That's why Short Par 4 enlisted the expert help of
DeepSky.
Build Systems
That Create Freedom
DeepSky started to collaborate with Short Par 4 in 2016. The task was to identify the root
cause of their unprofitability. The root cause of such stemmed from the fact that the only
way to acquire strong financials is to base them on an even stronger system.
As is the case with many startups, the management team had been mainly dedicated to the
growth of the business, and totally neglected the importance of the company's basic
infrastructure. Because of – neglect, they didn’t realize just how unprofitable they had become
during their rapid growth. The solution to Short Par 4’s financial woes was to improve the
company's infrastructure while also building more sound financial reporting.
0%
Growth in Revenue
Build Systems
That Create Freedom
In fact, a number of customers posted videos to Youtube of themselves unboxing the products.
This, in turn, exponentially increased the number of subscription boxes sold. As a result, Short
Par 4 has successfully built its brand and established its foothold in the market.
Rapid growth, however, turned into a "growing broke nightmare" for this small business. Its
management team was so focused on being able to provide top quality products in every box
that they ended up completely overlooking the need for generating a healthy profit margin
aiming at the survival of the company itself. Both because of, and in spite of, the company's
rapid growth, they actually lost money on each box that was sold. The more product that they
were selling, the more money they were losing.
In fact, to make matters even worse, the management team was unable to identify the
problem, let alone how to deal with it. That's why Short Par 4 enlisted the expert help of
DeepSky.
DeepSky started to collaborate with Short Par 4 in 2016. The task was to identify the root
cause of their unprofitability. The root cause of such stemmed from the fact that the only
way to acquire strong financials is to base them on an even stronger system.
As is the case with many startups, the management team had been mainly dedicated to the
growth of the business, and totally neglected the importance of the company's basic
infrastructure. Because of – neglect, they didn’t realize just how unprofitable they had become
during their rapid growth. The solution to Short Par 4’s financial woes was to improve the
company's infrastructure while also building more sound financial reporting.
The
"Aha"
Moment
With DeepSky's help, Short Par 4 came to realize that each
and every number is telling a story. Once they had a much
clearer insight into their company's numbers, they started
digging deeper into specific ratios of growth to profits.
From there, they quickly discovered - the issue was an
“above the line” problem.
This realization was actually the turning point for the
company. DeepSky recommended Short Par 4 control their
losses by making their “cost per box” a trackable KPI.
Tracking it cost-effectively meant controlling their “above
the line” issue.
Everything started to get even better when DeepSky began to calculate a specific number that represented the basic cost of every box. That one particular number was successful in saving the company from bankruptcy while turning those amazing popular boxes into profitable boxes.
