Eric and Lorri Wallace own Hand-E Help, a handyman services company, and Convenient Water Treatment, a water treatment service provider. Hand-E Help became an LLC in 2020. It started as a small venture focused mainly on residential clients, with Eric originally taking on handyman work as a side gig. As the business grew, Eric and Lorri realized the challenges of running a small business without a solid foundation in financial management. Their story is one of perseverance, learning on the job, and seeking the right expertise to navigate financial hurdles.
The Challenge of Growing Responsibly
Before founding Hand-E Help, Eric and Lorri had limited experience in managing business finances. They both had experience managing personal finances, and Lorri had handled some administrative tasks in a doctor’s office, but they had limited knowledge about business accounting. These gaps in their financial expertise led to significant challenges in managing the company’s financial health during the early stages.
The biggest challenge for Hand-E Help was managing cash flow, especially since payment on commercial projects were delayed compared to residential. This created a backlog of funds that the Wallaces needed to pay their employees, cover operational costs, and continue expanding the business. Securing funding was also a struggle; despite their success in securing projects and completing jobs, they were unable to access traditional bank loans, which left them relying on high-interest loans and their own savings to fund operations and growth.
Additionally, the company’s first accounting firm, hired to help manage financial records, was unable to meet the Wallaces’ needs. The firm provided inconsistent services, failed to properly categorize expenses, and, in some cases, did not reconcile accounts or handle taxes correctly. The lack of attention to detail meant that critical mistakes were made, including errors in tax filings and financial mismanagement, which set the business back during its crucial first year of operations.
“We knew we had to find a partner who could help us understand the financial side of the business,” said Eric. “At that point, we knew we needed more than just someone to do our taxes. We needed someone to help us navigate cash flow, profitability, and how to grow the business strategically.”
A Turning Point for Eric and Lorri
In the midst of these financial struggles, Eric turned to his business network for advice. A friend and fellow business owner recommended Advantage Insights and urged Eric to get in touch with Mary Ferry, the founder of the financial consulting firm.
“When [he] told me that Advantage Insights could help us, I was skeptical at first, but I trusted him, so we made the call,” said Eric. “That decision changed everything.”
Advantage Insights immediately provided Hand-E Help with the financial clarity it had been missing. Mary Ferry and her team assessed the company’s financial situation and developed a comprehensive plan to address the numerous issues that were hindering growth.
A Range of Solutions for Hand-E Help and Convenient Water Treatment
Advantage Insights’ first major step was to clean up Hand-E Help’s financial records. The firm helped Eric and Lorri reconcile accounts, categorize income and expenses more accurately, and fix the mistakes made by their previous accountant. Through this process, Advantage Insights brought transparency and order to the company’s finances, allowing Eric and Lorri to gain a clear understanding of their cash flow, profitability, and outstanding debts.
One of the key solutions offered was the ability to track profitability by project. Before working with Advantage Insights, Eric and Lorri could not distinguish between the profitability of different jobs. By creating specific categories for expenses and income, they could now see where they were making or losing money. For example, they could separate project-related wages, office staff costs, equipment, materials, and supplies. This newfound insight gave them a clearer picture of which projects were truly profitable and which ones were costing them more than they had realized.
Advantage Insights also educated Eric and Lorri on key financial concepts, such as gross profit percentage, debt management, and strategic growth. According to Lorri, the education aspect of the partnership was invaluable. “I learned so much about how to properly categorize and track income and expenses. It wasn’t just about the numbers; it was about understanding what those numbers meant for the business.”
What Financial Clarity Means for Small Business Owners and Operators
The results of working with Advantage Insights were immediate and transformative for Hand-E Help. Within months of implementing these new practices, Eric and Lorri saw improvements in their business’ financial health:
Increased Profitability: Hand-E Help’s gross profit margin went from 5% to 46%, an impressive improvement that allowed the Wallaces to reinvest in the business with confidence. By improving their pricing strategy and understanding their costs more effectively, they could price jobs appropriately and avoid losing money on projects.
Improved Cash Flow Management: With accurate monthly reports on income, expenses, and debt, Eric and Lorri were able to make more informed decisions about hiring, project management, and the allocation of funds. This improved visibility also helped them reduce debt and stabilize their cash flow.
Better Financial Planning: With the help of Advantage Insights, Eric and Lorri set more realistic financial goals for Hand-E Help and Convenient Water. Rather than chasing growth at all costs, Eric focused on “smart growth”—developing processes and systems that would support sustainable expansion. This allowed them to stabilize their business before expanding further.
Access to Capital: Advantage Insights helped Hand-E Help improve its financial records to the point where they could confidently apply for lines of credit with better terms. They also assisted in consolidating accounts and improving the overall financial presentation, making the business more appealing to potential investors and lenders.
Increased Confidence in Decision-Making: The financial visibility provided by Advantage Insights allowed Eric and Lorri to make strategic decisions about staffing, marketing, and business expansion. Eric no longer had to worry whether or not a new hire or marketing initiative would be profitable; he had the data to back up his decisions.
“Before Advantage Insights, we were in the dark on some things,” Eric recalled. “Now, we can make decisions with confidence. We understand our numbers, and that’s empowered us to grow in a way that makes sense for the business.”
A Financial Transformation that Honors Their Mission
Working with Advantage Insights has been a game-changer for Hand-E Help. The financial clarity and strategic guidance have given Eric and Lorri the tools they need to manage their business more effectively, reduce debt, and position themselves for future growth.
“Advantage Insights hasn’t just helped us fix our financial problems,” said Lorri. “They’ve educated us and empowered us to take control of our business in a way we never could have on our own. It’s been a relief to know we have a partner who understands our challenges and is committed to our success.”
Thanks to the partnership with Advantage Insights, Hand-E Help and Convenient Water Treatment are now in a much stronger financial position and are poised for continued growth. Eric lists his businesses’ core values as: Faith, Family, Honesty, and Excellence. Thanks to Advantage Insights, Eric and Lorri can take an honest look at their financials and make changes to honor their values, giving them more time to spend with family and ensuring paid time off for staff.
“We know that this partnership has been a Godsend and we’re super excited about it.”
-Eric Wallace, Owner