After a series of smart financial decisions, Mike and Rachel Henderson have more than doubled their annual turnover and grown their business more than they ever thought possible.
Having first met in England back in 1988, the Kiwi couple soon migrated to Western Australia where they began working in the shearing industry, Mike as a shearer and Rachel as a wool classer. Together, they worked hard to build up a nest egg and in 1997, they welcomed their first child into the world.
Less than two years later, the Hendersons had gone from zero to three children, and their life began to change quite quickly. Not only had they shifted from two incomes to one while Rachel cared for the kids, but it was becoming increasingly difficult for Mike to travel for work and be away from his young family for such long stretches of time.
However, an opportunity soon presented itself for the Hendersons to purchase a shearing business in Dongara. Both country people at heart, Mike and Rachel knew it would be the perfect place to raise their family, and they saw it as their chance to truly have the best of both worlds.
Shortly after taking the plunge into business ownership, the Hendersons sought out the help of a skilled accountant, and they soon connected with CapitalQ founder Duncan Melbin. With the support of Duncan and his team, it wasn’t long before they had almost doubled their monthly earnings.
‘CapitalQ has had a huge impact on our business, and I think that’s largely because they’ve taught me how to look at the big picture rather than simply focusing on the numbers alone. To put it simply, they try to make your business better, rather than just doing your tax,’ said Mike.
‘One of the things that I’ve appreciated most about working with them is the fact that they’re always so proactive in trying to educate myself and my staff and suggest new things. That’s something I don’t think you find often, and I truly believe they’re a step ahead of the game.’
“We’ve worked with the CapitalQ team for years now and it’s refreshing to know that we can always speak to an expert whenever we need them.”
Cloud based accounting
To Mike, one of the major changes to his business was making the switch to Xero, a cloud based accounting program that has enabled him to spend less time on the books and more time on growing the business.
‘Following CapitalQ’s advice, we made the change to cloud accounting about 5 or 6 years ago. It’s been a real game changer for our businesses, and they’ve even trained up our bookkeeper Kylie Hill who does a fantastic job – so our books are just first rate,’ said Mike.
‘Right from the start, Duncan explained to us that if we get rid of the menial stuff that takes up so much of our time, we can concentrate on the bigger things to help you grow your business and we see that as an important part of our role.’
Purchase of a second business
With all systems running smoothly, Mike and Rachel were able to take a step back and think about the ways in which they could continue to grow their profits. When the opportunity arose to purchase the Badgingarra Roadhouse & Tourist Park in 2016, it seemed like the perfect chance to expand.
‘It was pretty rundown at the time, and in the beginning we were taking a loss. We worked closely with Kapil Bhasin from CapitalQ on turning it around, and the advice he shared with us was just invaluable. He taught us a lot about how to drive business, and in the first month we started following his advice, we made $15,000 – we couldn’t believe it!’ said Mike.
Planning for the future
While the two businesses have been an integral part of setting themselves up for the future, Mike and Rachel have also established a Self Managed Super Fund to prepare for their retirement and make the most of their current earning capacity.
‘Getting the Self Managed Super Fund set up was a big deal, and CapitalQ helped us to understand the value that the fund could bring. Now, we’re earning money inside the business as well as outside of the business,’ said Mike.
“With all systems running smoothly, Mike and Rachel were able to take a step back…”
Throughout their entire business journey, the single most important thing to Mike and Rachel’s success has been having the consistent support of those around them, and being able to call on people who understand their business.
‘We’ve worked with the CapitalQ team for years now and it’s refreshing to know that we can always speak to an expert whenever we need them. They’re always there for us, and they really are the perfect blend of ‘old school service’ with cutting edge technology. We couldn’t be happier with the service we’ve received and they are truly an invaluable, irreplaceable partner in our businesses and wealth building.’