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GRACE TEAM ACCOUNTING

Business growth and a path to succession | Chemwash Tauranga

Warren began his career in marketing and sales of a much loved and locally owned winery. A natural calling having grown up in the business on a family vineyard. His focus was distribution channel sales and the global export market such as Japan and Europe. 

Accountants Tauranga

In 2018 with the sale of the family winery and looking ahead to the future, Warren took up an opportunity to take 50% ownership of the Chemwash Tauranga operation with business partner Sam. Chemwash is a little different to a franchise in that it is a Co-op run nationally between members. 


“It was a bit of a shock. Going from a business with a long sales pipeline and a slower sales funnel, selling by the container load,  to a fast paced service based business. Says Warren.  “Being on the ground, where the enquiry and efficiency of response times were critical was demanding. 


In the early days with two vehicles and two staff other than myself it was baptism by fire. Getting a handle of the business, attending to all the enquiry, managing the workload and ensuring a quality delivery were my focus - I very much worked in the business in those days.


Milestones in the early years of trading were - making a case to add a vehicle and person to the service. Employee engagement and dependability was also a focus and Warren had a “lightbulb” moment when dealing with an employee with tardy work ethic.


“The employee was late and we had a busy day ahead - and the temptation to put boots on and go out and sort the project was keen, but I thought to myself - if I put those gumboots on there is no going back, I will always be working in the business, not on the business”. 


Chemwash offers safe and effective exterior cleaning for all cladding and siding, whether residential or commercial. They also clean slippery decks and pathways, treat roofs, and clear gutters to prevent blockages. Their soft wash cleaning system, which uses low pressure, delivers excellent results with no risk of damage. As you can imagine, it’s a business model that demands prompt service and great communication with both customers and staff. Being part of a national brand with a unique Co-op setup is advantageous, as it provides infrastructure and support while still allowing for owner-operated focus and results.


“If I look back, each year we aimed to improve the business structure. In 2019 and 2020, we began automating the business, leading to the implementation of a phone service in 2022. Next, we integrated a software system, SM8, which manages everything from project inquiries, quoting, and workflow scheduling to recording projects and invoicing, all integrated with Xero. I went from spending 6-7 hours a day on admin to overseeing the business in a much more efficient manner.”


Grace Team supported us every step of the way, working alongside the Tauranga operation's accounts since 2018 and also taking over the accounting for many of the other Co-op tranches.


While the business grew steadily year after year, in 2022, post-COVID, we shifted our focus to training and health and safety. In March 2022, we invested in a new role, hiring a Health and Safety Operations Manager to enhance this aspect of the business. Becoming a preferred contractor for larger businesses was a key goal, and achieving Sitewise Gold was a milestone worth celebrating. “We trained our team in various areas—heights, elevated work platforms, first aid, and chemical response. This also helped unify our business culture. We have a great team with an excellent work ethic.”


Fast forward to now, and the business has grown fivefold since its inception—a fact Warren is proud of. Having a business partner in Sam, who runs the Wellington Chemwash operation, as a sounding board has been invaluable when making complex business decisions. Warren also believes in the “10,000 hours to become an expert” theory: “You really do become more confident, and decisions become easier because you know the business so well.”


In 2022, Warren and Sam embarked on another journey. “We recognized that one of our team members had become an essential part of our operations, and we both felt strongly that building a future plan, including business succession, needed to involve him. 

Michael Grace of Grace Team Accounting

Over the last eighteen months, with the support of Grace Team, we have developed a strategy to provide this individual with shareholding. Grace Team helped us value the business, create a structure to vendor-fund a shareholding return, and ultimately pave the way for future success. We’ve chosen a path where the share purchase is supported and paid off via dividends, ensuring the right person is invested in the business, securing its future.”.  


“We’ve been lucky enough to work with Warren and Sam since their purchase of the business and have seen their vision for the business turn into reality.  Understanding their vision and goals has helped us with the shareholding restructure and together we considered various options and selected the one aligned to their goals.  In any employee share structure, it is important that is a win for both parties, this ensures we create an enduring relationship that will benefit all parties and the business.  We achieved that for Warren and Sam” says Michael Grace, Director Grace Team Accounting. 


We took our time - we wanted to get it right and Michael and the team supported that. They managed the framework and the sale of the shareholding which we completed just a few weeks ago. We’re all very happy with the result.


Grace Team Accounting works with businesses to provide coaching and planning, so that you can sustainably and successfully scale-up your business. To find out more get in contact us on 07 578 5416.

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