Client Profile:
Name: Steve
Business: Large Civil Contracting Company
The Challenges
Steve’s civil contracting business was stuck in a cycle of unpredictability and stress. The key issue? The business wasn’t profitable, and he couldn’t pinpoint why. This lack of clarity led to:
- Unpredictable Cash Flow: Steve was often caught off guard by financial shortfalls, making it hard to manage operations.
- Unknown Profitability Drivers: Without understanding which parts of the business were profitable, Steve couldn’t make informed decisions about where to focus resources.
- Inefficient Operations: A large contract was consuming significant resources but not delivering the expected returns.
- Reactive Decision-Making: Hiring, spending, and operational changes were made in response to immediate problems rather than long-term strategy.
The uncertainty not only hindered business performance but also caused Steve significant stress about the future.
The Solution: Financial Clarity with the Profit Planner
Steve partnered with us to take a deep dive into his business finances using the Profit Planner. Through comprehensive analysis and targeted strategies, we helped Steve:
- Analyze Contract and Client Profitability: By matching costs to specific contracts and client groups, we identified where the business was thriving—and where it was losing money. This revealed a large, resource-draining contract that was costing far more than anticipated.
- Cut Out Unprofitable Work: Armed with this insight, Steve made the bold decision to stop taking on the unprofitable contract entirely. This freed up valuable resources and allowed the business to focus on higher-margin work.
- Optimize Staffing: By eliminating roles tied to low-performing contracts, Steve reduced overhead costs and streamlined his team to focus on the areas driving profitability.
- Forecast Revenue and Costs: With accurate forecasts, Steve could anticipate quiet periods and proactively manage his cash flow, reducing surprises and improving confidence.
The Results: A More Profitable and Efficient Business
In just a few months, Steve’s business experienced a remarkable transformation:
- Increased Profitability: By focusing on high-margin work and cutting out resource drains, Steve’s business became more profitable while doing less work.
- Reduced Costs: Streamlining the team and eliminating waste reduced operating costs, creating a leaner, more efficient business model.
- Strategic Focus: Steve now focuses on profitable projects and has a clear understanding of where to allocate resources for maximum return.
- Financial Confidence: For the first time, Steve feels in control of his business finances and has a clear roadmap for sustainable growth.
Key Takeaway
Steve’s story demonstrates the power of digging into the details. By analyzing profitability at a granular level and making strategic adjustments, his business achieved more with less—freeing up resources, cutting costs, and driving sustainable profits.
Are you ready to transform your business with Better Back Office? Let’s uncover your hidden opportunities and create a strategy for growth.