Profit Guard Case Study: The Right Foundations

Profit Guard engaged with two ambitious owners of a high-end metal fabrication company who had built a strong reputation in their community and maintained a steady stream of client orders. Despite their success in securing work, profitability had become a serious concern. The business had recorded losses in the hundreds of thousands of dollars, with projections pointing to an even greater deficit that year. When the company applied for a loan to expand capacity and reduce per-unit manufacturing costs, the bank declined the application citing financial performance as the key obstacle. Without that injection of capital, the business was caught in a frustrating cycle: high demand but limited ability to scale profitably. 

• Conducted an in-depth review of the company’s estimating process, identifying where pricing failed to reflect true production costs.
   
• Introduced a refined pricing model aligned with profitability targets and client value perception.
   
• Reorganized financial records to ensure greater visibility into cost accounting, purchasing, and sales performance.
   
• Created a monthly dashboard to track progress toward profitability goals and highlight priority actions for each 30-day period.
   
• Guided leadership through data-driven decisions, demonstrating where price adjustments could be made without sacrificing client retention.
   
• Established new internal procedures to sustain financial clarity, reduce inefficiencies, and maintain profitability long-term.

• Within three months, the company transitioned from operating at a substantial loss to generating a six-figure profit.
   
• Improved estimating and pricing procedures brought cash flow into the black and gross margins up significantly.
   
• Enhanced visibility into financial data allowed leadership to make faster, more confident decisions.
   
• The company successfully secured a bank loan, providing the working capital needed to expand operations.
   
• By strengthening financial foundations, the business gained long-term stability and a clear framework for continued growth.