Case Study #2: Remodeling Company – Crofton, Maryland
Client Profile
- Industry: Remodeling
- Location: Crofton, Maryland
- Revenue: $1.3M annually
- Team: 6 employees
- Starting Net Profit: -8%
The Challenge
This remodeling company had strong sales but couldn’t deliver on promises.
- Projects weren’t completed on time.
- Customer service was poor, creating reputational issues.
- Cash flow was negative, worsened by the lack of financial structure.
- No system to job cost accurately, leading to hidden money leaks.
- Sales and design had vision, but the field couldn’t capture it, resulting in low gross profit.
The Fix
Over 8 months, we restructured the company for long-term stability:
- Built a clear financial recordkeeping system to track inflows/outflows.
- Created an estimating model based on production rates, tied to detailed written project scopes.
- Implemented software for client communication, ensuring transparency and accountability.
- Established clearer communication channels between sales/design, clients, and field staff.
The Results
- Client trust restored: old complaints resolved and new projects delivered on time.
- Customer satisfaction improved, boosting reputation and referrals.
- Projects completed at 50%+ gross profit.
- Net profit stabilized at 5–8% monthly.
- Cash flow turned positive, allowing the company to pay off accumulated debts.
- Employees had clear expectations, improving workflow and morale.
- A company once in survival mode now had a positive outlook and a profitable path forward.
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