CASE STUDY: From Credit Line to $24K Profit Month in Just 6 Months

How one retail store used strategy, not luck, to recover profitability.

The Business:

• Type: Brick & mortar retail
• Owner: Solo founder
• Team: Small staff
• Challenge: Thousands in losses, relying on a line of credit to stay afloat
  

The Situation:

After a tough financial year, this retail store was bleeding cash.
The owner had taken out a line of credit just to cover operational costs, and had no clear path to profitability.

Sales were happening.
But margins were tight, inventory was bloated, and the team wasn’t pulling its weight.

She needed a strategy, and she needed it fast.

The Strategy:

We didn’t overhaul the whole business.
We focused on the areas that would actually move the needle.

1. Sell Through Old Inventory

We built a plan to move stagnant product quickly freeing up space and cash without sacrificing brand integrity.

2. Improve Margins (Slightly)

Instead of dramatic price changes, we made a few small adjustments that added up, ultimately optimizing COGS and increasing AOV.

3. Restructure the Team

We let go of underperformers draining payroll and brought in one sales-driven hire who immediately shifted the energy and revenue.

4. Weekly Financial Visibility

We tracked every dollar in and out with weekly reports and proactive cash flow management. No more end-of-month surprises.

The Results:

• Profitability Recovered:
  No more reliance on debt. The business stabilized and was back in the black within 6 months.
  
• $24K Profit Month:
  With the new structure in place, the store hit a record profit month…. $24,000 in net profit, without a promo or big launch.
  
• Stronger Foundation:
  The owner gained confidence, visibility, and a sustainable team, and now runs the business with clarity, not chaos.
  

What This Proves:

You don’t need a miracle.
You need a focused strategy, clear numbers, and the discipline to execute.

This was a turnaround built on margin recovery, smart hiring, and inventory control, not just “more sales.”

If you’re sitting on too much product, a bloated team, or a gut feeling that something isn’t working, we should talk.