The Situation
The business was experiencing strong demand and rapid growth. Revenue had increased 65% over 18 months, but delivery became inconsistent and financial outcomes grew harder to explain. Decisions flowed almost entirely through the owner, creating constant pressure.
Key Indicators at Start:
- Revenue: $2.1M → $3.5M (65% growth in 18 months)
- Net margin: collapsed from 22% to 8%
- Owner working 70+ hours/week
- 3 of 5 recent hires quit within 90 days
- 40% of jobs required rework or callbacks
The risk was not slowdown. The risk was collapse under momentum.
The problem was not effort, talent, or market opportunity. Growth had outpaced the operating foundation. Jobs did not follow a clear lifecycle from sale through completion. Labor, materials, and overhead were not resolved cleanly at the job level. Work was added faster than the system could reliably deliver.
The work began by slowing things down. How work actually moved through the business was mapped instead of relying on assumptions. Financial signals were clarified so decisions could be grounded in reality. Role expectations were reset across ownership, management, and execution.
Growth was intentionally deprioritized. Stability, order, and durability were treated as prerequisites rather than rewards.
As clarity improved, delivery became more predictable. Decision making shifted from reactive to intentional. The owner regained the ability to lead instead of constantly reacting to problems. The business moved from survival mode into a position where growth decisions could be made responsibly.
This situation reflects a core belief. Businesses do not fail from lack of ambition. They fail when growth outpaces clarity. Once constraints are identified and addressed in the right sequence, progress follows naturally.
Results After 6 Months
| Metric | Before | After |
|---|---|---|
| Net margin | 8% | 19% |
| Owner hours/week | 70+ | 50 |
| Job rework rate | 40% | 12% |
| Employee retention (90-day) | 40% | 85% |
| Revenue | $3.5M run rate | $3.2M (intentional) |
Revenue decreased intentionally—the team focused on profitable work rather than volume.
If your construction or trade business is experiencing similar challenges, this is exactly the kind of work we do. Learn about Fractional COO services or get in touch to discuss your situation.