- The Story
Danforth Art Studio is located in the vibrant Danforth community of Toronto known for multicultural cuisine, independent grocery stores, and unique retailers. Also known locally as Greektown, this area of Toronto also boasts a large and eclectic Greek community. (No surprise there!) Nestled amid all this cultural activity is Danforth Art Studio, a small business client of our since April of 2023. Danforth Art Studio offers classes, camps, team building events as well as an art-focused retail store with the mission of ‘connecting and creating a beautiful neighbourhood together’. The studio was formerly under the banner of 4Cats, an art studio brand that has operations in B.C., Alberta, and Ontario. In 2023 the Toronto studio began to transition from 4Cats ownership to an independent model and Angie saw an opportunity to be an entrepreneur and own her own art-focused business. Danforth Art Studio still licences the 4Cats arts curriculum but otherwise operates as a fully independent business.
The Challenge for Danforth Art Studio
With a background in arts education, Angie felt, in some ways, that she didn’t know what she didn’t know. She had had exposure to many aspects of the studio’s operations but was now faced with the challenge of managing the business’s financial health and making sure the books were accurate, reliable, and up-to-date. She realized she needed to work with experienced professionals who would allow her to have the time to manage day-to-day operations rather than focusing on expense tracking and bill payments. In addition, Angie had to make sure her staff was paid properly, on time, and in compliance with Canadian payroll regulations. In short, she needed to find an expert team to partner with on her entrepreneurial journey.
The Solution from Us
Luckily, the founder of 4Cats (the original owner of the studio) was familiar with Enkel and had already been an Enkel client for several years. When Danforth Art Studio was moving from 4Cats ownership to Angie, it seemed like a good idea to keep the bookkeeping service relationship intact. The Enkel team stepped in to welcome Angie and ensure she had a smooth onboarding experience. As a new business owner, she appreciated the hands-on approach to working with clients that the Enkel team had in place.
Danforth Art Studio, under Angie’s proprietorship, works with Enkel for bookkeeping, payroll, and accounts payable. All of these services are heavily tech-enabled, which is a big bonus for Angie. Angie was happy to get up to speed on Enkel’s technology suite including Karbon for task management and communication, Dext for expense management, and Plooto for payments. She appreciates having the checklists, notifications, and prompts to input her data so the Enkel team can take care of the rest. She estimates that most of the routine data entry she needs to do takes her 15-20 minutes per week. She takes photos of all of her expense receipts and uploads them to Dext, helping to ensure all transactions are coded properly. She then works with the Enkel team as needed to clarify any uncategorized transactions. She also reviews and approves her payroll for each period, ensuring her staff are paid accurately and on time. Working with Enkel gives her more time to focus on supporting her team, engaging with customers, and finding growth opportunities for her business.
The team at Enkel also referred Angie to a Vancouver-based CPA firm to help her with her year-end accounting and tax returns. Having trusted professional service firms in place for all of her financial operations allows Angie to sit back and enjoy her life as an arts education entrepreneur.
Our involvement in supporting the Company merger extended over a comprehensive three-year period, encompassing activities ranging from pre-merger due diligence to post-closing strategy. However, it was during the crucial phase of merger integration that Company began to experience the tangible benefits that result from successfully executing a meticulously planned merger, particularly within the retail industry.
Through the implementation of a new operating model and the consolidation of its organizational structure, Company achieved significant cost savings, precisely as planned and within the designated timeframe. The company successfully attained its synergy savings target, equivalent to 1% of sales. Notably, 14% of these savings were derived solely from IT-related initiatives, underscoring the impact of the IT integration efforts.
Today, Company stands as a prime example of a retail company that has harnessed the operational efficiencies and bolstered competitive positioning promised by the initial merger thesis. The organization has realized the full potential of scale, ensuring a strong foundation for sustained growth and continued success in the dynamic retail market.