We are in the business of helping wineries. We do this often for smaller, family-run wineries. In the case study below, we will describe how we helped examine a sole proprietorship winery, an independent, family-run business dedicated to preserving a legacy.
More than just a business, the winery represents the owners’ life’s work, deeply rooted in tradition and driven by the desire to build a future through the craft of winemaking.
Behind the glamour of an incredible wine brand lies a serious financial challenge that was emerging. An issue that threatens the continuity of the business and the security of the family behind it.
Beneath the Surface: A Brewing Financial Crisis
As production ramped up, operational costs rose significantly. The business faced higher expenses related to fruit procurement, extended aging processes, and bottling. The costs of growth were catching up with them!
Compounding the issue was an industry-wide slowdown in sales and delayed receivable collections. Cash flow began to tighten, and the outlook became increasingly strained.
The reality was sobering: the business could not remain current on financial obligations without immediate adjustments.
Access to external capital was extremely limited. The owners were forced to confront a difficult possibility: whether to invest more of their personal savings or begin considering an exit strategy that wouldn’t also put their financial future at risk.
Creating a Plan: Precision Forecasting and Candid Advice
In response, a hands-on, data-driven approach was implemented.
Monthly cash flow forecasting became the foundation of the financial planning and analysis. Each forecast covered 4 to 6 months and was built using both historical and real-time financial information.
forecasting financial statements wasn’t high-level; it was precise and operational. Every vendor and receivable was mapped out to determine who needed to be paid and when, and when payments were expected to come in. This gave management the clarity to make critical decisions with confidence rather than guesswork.
The projections also illuminated the sales increases required to maintain operations, identifying how much inventory needed to be sold and when. The cost of goods sold data helped the owners prepare for key decision points, whether external funds would be required, and if so, exactly how much and when. It also helped define when personal funds might actually make a measurable difference, rather than being thrown at a problem without a solution.
Perhaps most importantly, it allowed the owners to avoid putting their savings into a losing battle. If a turnaround wasn’t possible, they could make that decision early and avoid unnecessary personal loss.
Outcome: Peace of Mind and Financial Clarity
Things remained difficult. Accounting profit remained tight, and difficult choices had to be made regularly. But the process provided something that hadn’t existed before: control. The family no longer had to navigate financial chaos; they had a clear path, regular updates, and the confidence that each decision was grounded in reality. The new process provided them with time and an early warning system of what was coming.
In the end, the strategic financial analysis paid off. The business weathered its most vulnerable period. Through disciplined planning and the willingness to confront hard truths, they preserved both the company and their personal security.
Today, there is a renewed sense of stability. Most tellingly, the owners report sleeping better at night. It’s not always about profits or growth—sometimes success is simply about making it through and feeling safe again.
Why This Matters
For small businesses, especially family-owned wineries and craft producers, the line between personal and professional is blurred. The industry often represents a dream, a legacy, and a retirement plan all in one. When adversity hits, it’s not just the company at risk, but the family’s future.
As Wylie Warner puts it,
“For many clients, their business is their life’s work and retirement plan. Our role is to turn numbers into a plan, protecting both their business and their future.”
This story shows how powerful financial visibility can be. Even a small amount of good information, regularly updated and strategically used, can become a tool for resilience. It’s not about knowing every answer; it’s about knowing enough to make the right next decision. It is about having information to discuss next moves. It is about having a warning of when the next big issue is on the horizon. It is about peace of mind and planning.
This story shows how powerful financial visibility can be. Even a small amount of good information, regularly updated and strategically used, can become a tool for resilience. It’s not about knowing every answer; it’s about knowing enough to make the right next decision. It is about having information to discuss next moves. It is about having a warning of when the next big issue is on the horizon. It is about peace of mind and planning.
As accountants, our role goes beyond delivering financial reporting and analysis. We guide, support, and protect. We offer the structure clients need when everything else feels uncertain. And sometimes, that guidance is what makes it possible for a dream to continue.
