How a small business can overcome a financial crisis and stabilize income in conditions where every hryvnia counts?

‍How to optimize expenses and increase profit without using complex financial programs?Thehrdwood, a company that managed to turn challenges into opportunities, knows the answer to these questions.

Thehrdwood - Natural Products for Space Harmony

Artem Kornieiev founded Thehrdwood in 2013 in Kyiv, creating a company specializing in producing exquisite wooden products. The company's products, presented on marketplaces like Etsy, Amazon, and its own website, quickly gained popularity in the USA, Canada, the UK, and other countries.

Before the war, the company focused primarily on customized engraved products. Kitchen boards with family recipes, which became true bestsellers, were particularly popular. The company was the first to offer such unique gifts, earning recognition and popularity.

From 2020 to 2021, the business grew rapidly, gaining extensive reach and support from marketplaces.

In 2022, the war significantly impacted the company's activities. Logistical problems made deliveries uncompetitive, and finding alternative routes took about four months.

This led to a significant increase in delivery times and a threefold drop in sales of customized products. However, instead of halting operations, Thehrdwood shifted its focus to producing home workspace and decor items.

Challenges on the Path to Success

‍Artem and his team faced a number of challenges that required quick and decisive actions:

• Profitability Analysis: The need to understand the company's actual financial situation and determine which business areas were most profitable, where to focus, and which areas to cut back.
• Financial Instability: A large number of accounts, channels, and marketplace reports created confusion in financial reporting.
• Financial Transparency: The need for a convenient and clear financial reporting system to help make the right decisions.

Meeting Finmap

After several attempts to use Western financial systems that did not meet expectations, Artem found Finmap. From the first demo video, he realized that this was exactly what was needed: a simple, convenient, and effective program.

Finmap - A Reliable Strategic Partner

Artem and his team discovered that Finmap was not just a financial program but a true strategic partner. Finmap also helps find financial experts and provides financial consulting and support.

Results of the Collaboration:

• Revenue Growth: For the first time in three years, the company became profitable by implementing effective business development strategies and continuously analyzing the market. Regular online meetings with a financial expert became an integral part of the work: data analysis, identifying weak points, and finding ways to address them. An annual strategy and three development scenarios were developed.
• Expense Optimization: The company not only reduced expenses but also ensured positive cash flow, laying the foundation for further growth.
• Financial Stability: Thehrdwood managed to ensure business stability and growth using a simple and effective management reporting system.
• Innovative Budgeting: Implementing a budgeting system for different expense items allowed for more efficient resource management.

Every week, Artem, along with a financial expert, checks if the company is on track and calculates the expected income at a certain sales pace. If deviations from the plan are found, they respond promptly and cut unnecessary expenses.

Financial data is digitized and displayed on clear dashboards, allowing for quick responses to changes. The system made financial management easy and convenient, even from a smartphone.

• ‍Break-even Point: The company knows the stage at which sales cover all expenses. For the rest of the month, Thehrdwood operates at a profit.

Like many small businesses, Thehrdwood faced serious financial challenges. By timely seeking expert assistance, the company not only survived but also thrived, turning the crisis into an opportunity for growth.

Thehrdwood achieved new heights during difficult times, becoming a true example of a successful enterprise ready for future challenges. Artem and his team do not rest on their laurels and continue to collaborate with a financial expert from Finmap to achieve ambitious goals and bold plans.