From Seeing Red to Visions of Progress: Navigating Debt & Livable Salaries
This networking company made a plan to get out of debt and improve member retention — while paying themselves a livable salary
6 Degrees of Separation is the theory that we’re all just six connections away from any other person on the planet.
That’s the idea that inspired SIX°, a business community that believes the best “networking” starts with relationships.
Kristina Gent purchased SIX° in 2022, and spent the first six months of her ownership evaluating the direction and mission of the company. In her time there so far, she and business partner (and husband) Eric Ozarowski have helped SIX° clarify their company’s purpose to build a community of professionals, leaders and connectors while fostering “connection with intention.”
But they’ve also run into some significant challenges that are blocking their progress. Namely, they needed help getting in the green financially and improving member retention. That’s where we came in.
The Problem
Kristina and Eric came to us with a couple of problems she wanted to address right away. Before she and Eric took over SIX°, the business only had a 40% member retention rate.
Additionally, due to limited cash flow in the first quarter of owning the business, they racked up about $15 thousand in credit card debt that needed to be paid off as soon as possible.
They were operating in the red out of a negative cash flow. With all of these factors in the mix, Kristina and Eric weren’t able to pay themselves a sustainable paycheck.
Where mission edge came in
We wanted to help Kristina and Eric get out of their financial rut so they could start to grow.
First, we paired them with Patrick, a finance expert who helped fine-tune SIX°’ revenue and unit forecast. Together, Kristina, Eric, and Patrick assembled a rundown of the cost of goods sold. Once that information was organized, some adjustments were made to their financial model.
We also provided Kristina and Eric with some valuable business development strategies, including LinkedIn prospecting searches and sales call scripts.
Finally, looking toward the future, we helped Kristina and Eric craft a 90-day plan to work toward some of the goals she outlined at the beginning of our time together.
The solution
After working with us, they were able to complete a financial model that gives them a clear direction for how to drive growth outcomes for their business.
They also had a plan in place to work toward paying themselves more.
Now, Kristina and Eric have the goal of an 80% member retention rate, and they are targeting 10-12 new members per month.
They are planning to expand and launch new leadership groups in numerous locations including Orange County, Chicago, Phoenix, Denver, and Austin.
You can see results, too
When you’re working your way out of debt, the other “business owner things” can get overwhelming pretty quickly.
Sometimes you need an unbiased third party to help you get out of a rut.
Because of our work with Kristina, she and Eric now have:
A clear path forward.
Specific revenue growth goals and strategies to achieve them.
A more robust financial model to help them make more informed business decisions.
Sound like you could benefit from some of these things, too?
Check out Impact Lab to find out more about how our program could help you grow your business!
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