Gin & Tonic Clothing – Going Your Own Way

Kris’s children had reached an age where they were at school and doing their own thing, and Kris decided she needed a new direction for herself, a brand new stimulation.   At the time for Kris, establishing a clothing boutique was an exciting prospect the she felt had the potential to fulfil her needs.   It was of course a journey into the unknown, and Kris bravely took it on.

“It all started back in 2012, my business partner at the time and I, decided to open a women’s clothing store in Drummoyne Sydney.  We named our store Gin & Tonic Clothing.  The theme was our way of saying that life is too short not to celebrate every little and big moment with a Gin & Tonic!”  

“My business partner was entrepreneurial by nature, and it was our idea that we would create a central hub for local women to connect, and to learn that they can look and feel good about themselves just by wearing what is right for them.”

“We were using an accountant at the time, but the fit was just not right.   We needed and advisor that shared our passion for the project, and we really needed help on the financial side to move our new venture into a success space.”

Gin and Tonic Clothing had a setback to start with, as Kris’s business partner relocated interstate and chose to move on.  At that point, Kris was faced with the decision on whether to close up or push on alone.    For Kris, the decision was simple.   She had come this far, and she truly believed in the progress of the venture.   Aside from that, Kris was having fun, enjoying her work, and the thought of being the driver of her own ship didn’t phase her at all.   A particularly courageous move, as we all know running a business solo can be very demanding and difficult. 

Kris didn’t have the time nor the inclination to manage the financial side of Gin & Tonic Clothing.   She wanted to focus on what she loved to do, and that was providing her customers with an exceptional “feel good” service.  This was a firm decision from the start.   The financial function would be outsourced.  

“When my business partner decided to relocate, I knew I couldn’t do everything alone, and be good at everything, and I can now say that outsourcing the financial function of my business was a very wise move.  I didn’t know how to manage the partner separation, and I didn’t have any interest in learning how to manage the books. ” Kris said.

Our Assessment

Kris and her business partner originally came to us seeking compliance services as they were dissatisfied with their tax provider at the time.  Our relationship blossomed over time to well beyond compliance services, due to the support we provided to both partners during the separation, and our ongoing commitment to Kris in her new circumstances.

It was still early days in the business when we met.   There was a shop.   And a dream.   Empty personal pockets as the partners had injected their personal savings into the project.   There was an accountant that didn’t gel.   And overdue returns.   The outcome of the first year was an expected loss.

Kris’s business partner’s personal situation had changed, and she decided to move on.   The first year business loss expedited her exit.

It was far from smooth sailing for Kris thereafter.   She was faced with the task of building the business up alone, and paying back her business partner the money that she had contributed, as was agreed by the ladies in their shareholder agreement.   This of course left Gin & Tonic Clothing in a state of cash flow deficit.

All the while Kris didn’t give up.   At times she has amazed us with her dedication and commitment to her business.    Aside from cash flow restriction, it took time to turn losses into profit, as product was being sourced at maximum premium, leaving minimal room for markup.   Kris had employed staff to attend to the shop in her absence, and at the end of the day there was not much left for herself.

We recognised immediately that the Gin & Tonic Clothing position was non sustainable if the business was to continue in this way.   There were crucial factors in the business that needed to be addressed.

We saw a beautiful lady with such a special outlook on life, who deserved to build her dream into a successful reality.   By implementing a few essential strategies we knew we could help Kris to do this.

Working Together 

The Minnik Program has applied to the case of Gin & Tonic Clothing, firstly in the business arena.

The partner separation was a temporary setback for Gin & Tonic Clothing, and it took significant time to recover.    We ensured both partners were treated fairly in the split, and that the exit over time was clearly documented to avoid potential negative impact on the asset.

Back at the table with Kris, in light of the recent changes, the cash flow problem, and the ongoing losses, we assisted Gin & Tonic Clothing to recognise the importance of active stock, and appropriate markup.    The key in our contribution was sourcing product below premium, supplier negotiations, potential imports, and marketing exposure.

Gin & Tonic Clothing outsourced their finance function to us, and we managed everything from their bookkeeping and payroll, compliance matters, financial reporting, and both business and personal advisory.

Kris Hutton is the proud owner of Gin & Tonic Clothing Drummoyne Sydney.  Business losses are well and truly a thing of the past, and Kris is well remunerated for her long term efforts.

Our journey with Gin & Tonic Clothing has been truly rewarding.   We are now working on Kris’s personal financial journey as the second stage in The Minnik Program.

Kris is now in a position to recognise that what started out as an idea, designed to fulfil her need for stimulation after caring for her young children, is now a sustainable income generating asset.   This income has become an important part of Kris’s personal wealth outcomes.

Kris’s Success

The Minnik Program has helped Gin & Tonic Clothing kick on through an initial setback, sustain recovery, and progress upwards to become a healthy generator for its owner, enabling her to have more control over its daily operations, and ultimately its future.

Gin & Tonic Clothing believes that it has reached its goal of “making women feel good every time they walk through the door”.   Which is everything that Kris set out to achieve for her customers.

These days, Kris can see so clearly, that she is dedicating her time and utilising her skills towards a brand new passion, wardrobe styling.   As the shop continues providing the local community with a wonderful feel good experience, Kris is helping women beyond the local region to dress for success.

What Kris has built up in Gin & Tonic Clothing is an absolute credit to her.   We are proud to be associated with this incredibly inspirational woman.

What Kristina has to say . . . .

“At Gin & Tonic Clothing we are big believers in the idea that women can look and feel good about themselves just by wearing what is right for them.  From school pick ups to something special we love to dress our clients in a way that is perfectly suited to the occasion, their body type and their personality.  Gin & Tonic Clothing is all about personalised service.”

“My business is about encouraging and inspiring local women to feel good about themselves, by their wardrobe.   I had made a decision to make this work, and partnering with Leah and her team at Minnik has made my dream possible.”

“Leah has shared with me and my business so much valuable knowledge on all things financial.   Aside from this, I don’t have to worry about the financial side of the operation because it is the best of hands entirely.   Leah always lets us know if there is an issue that needs to be addressed, even if something crops up unexpectedly.   I am so busy running the shop, pursuing my new venture, and managing my growing family, I have peace of mind that the financial side of the business is being well cared for.”

“Leah and her team have a true understanding of my passion to make a difference to the lives of others through my business venture.   Her care extends to my personal life and these days our meetings also include my husband Greg.  The Minnik Program has shown me that a dream can become a reality, and that dream is now contributing to the financial well being of my family.”

“Minnik provides a very personalised service, communication and advice is clear and well understood.   They are professional and have proven to be the perfect match for my business and personal journey.   I highly recommend The Minnik Program to any women in business who feel they are facing obstacles that may be preventing them from moving ahead into the zone they always dreamed of.”