When a commercial finance broker referred a local electrician to us, the message was clear: he needed help. The broker had been trying to refinance the director’s home, but with a mounting $250,000 ATO debt sitting on the books, the deal simply couldn’t proceed. The numbers didn’t stack up, and the stress was starting to take its toll.

The business had five staff and a solid base of clients. On the surface, it should have been doing well. But behind the scenes, things were unravelling fast.

Setting the Scene

A Hidden Compliance Failure

The director believed his tax obligations were under control. PAYG had been getting paid monthly, and the business appeared to be ticking along. What no one realised, including the director, was that the business’s GST lodgements had been set to annual reporting. Worse still, the accountant had failed to lodge four years’ worth of BAS statements.

When the issue was uncovered, the result was devastating. The ATO issued a bill for over $250,000 in unpaid GST, penalties, and interest, compounding at a rate of 11.38 percent per year. The director was blindsided. There had been no warning, no planning, and no ability to absorb a debt of that size.

Underperformance and Personal Strain

At the same time, the team on the ground was struggling. Experienced staff had moved on, younger employees lacked the guidance they needed, and productivity had dropped. It was taking longer to complete jobs, rework was becoming more common, and morale was low.

Then, a personal tragedy hit. The director lost a close family member and, understandably, his focus shifted away from the business. The grief, combined with financial stress and an underperforming team, pushed the business into serious financial distress.

Building the Turnaround

When we first sat down with the director, the overwhelm was real. The tax debt felt impossible, the team was disengaged, and the idea of making a profit again seemed completely out of reach. But this is where a structured turnaround plan makes all the difference. When everything feels like chaos, we bring order.

The first step was to slow things down so we could get clear on what was really going on. We mapped out the business’s financial position, obligations, and operating pressures, and we broke that down into three focus areas: financial control, operational accountability, and director support.

1. Restoring Financial Control

We introduced cash flow forecasting to give the director clarity on what was coming in, what was going out, and what was at risk. This wasn't just reporting — it was a financial conversation, where we adjusted decisions in real time and built confidence that the business could meet its day-to-day obligations.

We also reviewed pricing and job costing. Like many trades-based businesses, this client wasn’t consistently charging for variations or factoring in the rising cost of materials and labour. Fixing this helped stabilise margins and stop the cash bleed.

With those foundations in place, we worked to re-establish a rhythm around invoicing, following up payments, and staying ahead of creditor obligations. Within weeks, the director went from feeling out of control to knowing exactly what needed to be done — and when.

2. Rebuilding Operational Accountability

The next challenge was the team. There was no performance management framework in place, no clear leadership, and no ownership from staff.

We brought in a specialist in team culture and leadership to work directly with the director and crew. Together, we redefined expectations, implemented daily check-ins, and introduced a basic job management system to track efficiency and accountability.

The turnaround didn’t happen overnight — but slowly, the team started to lift. Good staff responded well to clearer leadership. Low performers either improved or moved on. And for the first time in months, jobs were being delivered on time and with pride.

3. Supporting the Director

Through it all, our role as Director’s Advocate meant we were there not just to advise, but to stand beside the director during the hardest moments. We helped him work through tough calls, deal with ATO correspondence, and manage conversations he had been avoiding.

Importantly, we gave him a safe space to talk openly — about the pressure, the fear, the personal grief, and the sense of failure that so often comes with financial distress. By taking that emotional weight off his shoulders, we helped him return to the role of leader, rather than just firefighter.

Restructuring the Debt

With the core business stabilised, we turned our focus to the ATO debt. Rather than default, liquidate, or take on more personal liability, we guided the business through a Small Business Restructure (SBR).

This formal process allowed the company to continue trading while proposing a realistic repayment plan to its creditors. Through structured negotiation and developing a proposal that made commercial sense, the ATO agreed to reduce the $250,000 debt to just $70,000, giving the business back the breathing room it desperately needed.

The interest clock stopped, cash flow improved, and confidence returned.

Back in Control

Today, the business is not only surviving, it is thriving. Profits are being made month after month, experienced staff have been brought in to guide and mentor junior team members, and systems are in place to ensure compliance is actively managed.

Most importantly, the director is no longer consumed by the weight of uncertainty. For the first time in years, he’s planning a holiday with his family — something he once thought would never be possible.