Executive Summary

A San Diego in-home autism service provider owned by two therapists was losing money each month, in part due to hasty – and costly – decisions that were running the business into a hole. One of the priciest ventures pursued by the partners included an entirely new – yet completely disjointed – business that cost well over $100,000 to start up.


By the time Multivariable Solutions got involved in the web of businesses, the primary service-based company was constantly borrowing against their line of credit – and even from their individual 401(k)s – in order to pump money back into the company. To top it off, the partners decided to launch a new, unrelated business venture – a gym — that required intensive startup capital and accelerated the company’s financial duress.

Without any experience in their new business industry, the partners erroneously believed its existing clientele would be the same target market for their new business venture. The partners purchased a website, expensive digital advertising, and a lease in excess of $100,000 total, yet only sold 10 gym memberships, which barely put a dent in their startup debt load. To add to the disarray, the bookkeeping for the companies was muddled, which put both companies at risk of closure.


In order to unravel the businesses, the entire network required a complete overhaul and restructuring in order for the partners to climb out of their hole. Multivariable Solutions first broke the company into three separate entities – one C Corp and two S Corps – in order to compartmentalize the business and deal with each of the business finances individually. After a careful audit and analysis, the gym was closed.

Multivariable Solutions brought in additional support for HR, legal and payroll to help build the primary business back to a viable state. Once their lease was up at one office, all of the staff was consolidated into a single leased facility to reduce overhead expenses.

Results, Return on Investment & Future Plans

With no income coming in and costly ventures to be paid, the business would have easily faced bankruptcy within two months. Thanks to intervention from Multivariable Solutions, the business was saved from bankruptcy and is gradually climbing out of their hole, step by step. The secondary, capital-intensive business was shut down and the primary business continues to offer quality services to autistic children in San Diego County.

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