Construction / Property Restoration
Rapid return to profitability - in under 6 months
This client came to us suffering monthly losses of $20k, fearful that they would lose the company. Yet just a year ago they were a profitable business!
They had minimal financial data … because they had been successful without, up to this point. We immediately implemented a system to track profitability, that revealed:
- Which projects were profitable or unprofitable
- Project profitability by project manager
- Project profitability by client
- Project profitability by project type (e.g. new build, renovation, restoration)
We soon saw that two of the project managers were driving significant losses. As well, one of their “best” clients was consistently unprofitable, due to aggressive price negotiations.
Our client could now make informed decisions. Replacing the poor project managers and turning down projects with unprofitable pricing allowed a rapid return to profitability.
Within 6 months of bringing in CFO Source, they were generating monthly profits of $25k.