Rebuilding Profitability and Pricing Confidence for a Residential Builder

Engagement Level: Tier 2 – Strategic Partnership (Transitioning Toward Tier 3)

Snapshot

A residential construction business specialising in home renovations and knock-down rebuilds in NSW. Despite steady workflow, the owner was injecting personal funds to keep the business afloat.

The engagement began with financial analysis and evolved into a structured Tier 2 Strategic Partnership.

The Situation

The owner felt that “more money was leaking out than coming in.” Work was consistent.Profit was not.

He was hesitant to increase pricing for fear of losing clients, despite mounting stress and personal cash injections totalling approximately $150K.

Tier 2 in Action

Cleanslate delivered structured financial clarity:

• Conducted a four-year financial deep dive.

• Identified that a 25% markup was structurally unsustainable.

• Modelled a required 40–45% markup for long-term viability.

• Demonstrated the shift from a 15% net loss to sustainable profit.

• Addressed $30K in superannuation compliance issues.

• Built forward-looking cash flow forecasts.

Ongoing partnership ensured pricing decisions were implemented with confidence and monitored over time.

The Results

• Immediate implementation of revised pricing.

• Cash flow improvement within four months.

• Shift toward sustainable profitability.

• Increased owner confidence in premium positioning.

Clients were not deterred by higher pricing, they valued quality and were willing to pay for it.

Why This Reflects Tier 2 (With a View Toward Tier 3)

Tier 2 Strategic Partnership provides the clarity and accountability needed to stabilise and strengthen a business.

As performance improves, businesses often move toward Tier 3 – Capability & Growth, building internal financial systems and confidence to operate more independently over time.

This case demonstrates that progression.