The Energy CFO | The Energy CFO, LLC’s Post

 Do you know what your company’s profit margin should be on various projects? 🤔

When the books are closed and the project is completed, are the results in-line with your profit expectations❓ If not, do you know why? Is this just a one-off or are you finding projects are consistently falling below your profit expectations? Good news. The Energy CFO assists companies who want to improve their project profitability. We help private companies who provide products, technology, manufacture equipment, and offer various services like maintenance and construction, engineering, consulting, etc. to the energy industry. 💡 In our experience, most business owners know what the profit margin should be on the various types of projects they work on. What we have observed over the years is as companies expand their offering and mature, sometimes their project profitability may drop.   There are various reasons this can happen: ➡ No project due diligence. ➡ Scope creep and/or issuing change orders to customers for approval after work is performed. ➡ Commercial and financial risk mitigation techniques are not being utilized in Terms and Conditions / contracts. ➡ Price lists and/or bid models do not capture all project activities and/or costs. These are typically identifying post-completion as part of a look back analysis project. ➡ Cost estimates are not current and/or based on recent financial data (it’s a lot of work and inflation sure doesn’t help). ➡ Offering discounts based on overall price (which discounts your profit $ dollar for $ dollar) vs. offering a discount percentage on agreed cost line items. ➡ Mismatch in equipment and resources vs. customer needs. Perhaps its time to revisit your fleet and other resources – divest and make some strategic acquisitions. ➡ And many others… Are you ready to your company’s project profitability back on track? Contact us to discuss strategies for empowering your project profitability. You can learn more here: https://lnkd.in/g685-e6w #ProfitConsulting #BusinessProfitability #GrowthAdvisory