True project profitability visibility, project by project.
Pricing based on full business costs, not just direct costs.
Better project selection and execution control, plus predictable cash flow management.
A Canadian custom kitchen manufacturer delivering residential renovation projects.
The company appeared profitable on paper: every project showed attractive margins in their project calculator.
However, the founder saw a different reality:
The founder worried that accepting every opportunity would eventually overwhelm the business.
The founder came to us with one key question:
If every project is profitable, why are we always running out of cash?
We reviewed the existing project profitability model and discovered that the calculation included only direct production costs:
However, the model excluded the fixed costs required to operate the company:
As a result: projects appeared profitable individually but were not generating enough contribution to cover the full cost of running the business.
The company was making pricing decisions based on gross margin instead of operating profitability. We rebuilt the pricing model to answer:
We developed four pricing scenarios benchmarked against market pricing to identify the optimal balance between competitiveness and profitability.
The company appeared to have more cash flexibility than it actually did.
Our analysis showed that liquidity was supported by:
This created a 4-month artificial cash buffer that masked underlying cash flow problems.
We redesigned cash management by separating:
The company had a hidden profitability leak: project rework. Projects frequently required additional work, but:
We implemented:
Many projects were running behind schedule, but management lacked a consolidated view of project health.
We created a project performance dashboard showing:
We also redesigned incentives by introducing performance bonuses tied to:
Additional impact:
Every engagement starts with a financial and operating model built around your business.
Schedule consultationGrowing sales, constant cash shortages. We rebuilt inventory, HR, and financial discipline into one operating system.
More marketing wasn't the answer - retention was. We fixed cost structure and built a scalable expansion model.