In this week’s Let’s Talk, industry experts share proven strategies for structuring project-based work to keep profit margins stable when cash flow fluctuates monthly.
In this week’s edition of Let’s Talk, our experts tackle a challenge that plagues project-based businesses: maintaining stable profit margins when work volume swings wildly from month to month.
We asked seasoned business advisors and operators who’ve navigated these waters to share what actually works.
Let’s Talk!
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Linda Reed-Enever, Ideas & Marketing Strategist, Educator and Speaker, Enever Group
“Project-based businesses get into trouble when every job is treated as a custom unicorn. It feels flexible, but it quietly erodes margins, time, and sanity. The fix is simple, though not always comfortable: standardise before you customise. Clear project frameworks with defined scope, timelines, and pricing protect your profit and make delivery smoother for everyone involved.
The second mistake I see is relying on projects to pay the bills. Projects are unpredictable by nature. Your baseline income shouldn’t be. Retainers, ongoing support, or advisory work create stability so projects become profitable boosts rather than panic-driven fillers.
And finally, stop chasing revenue without considering capacity. Overloading during busy months and underpricing during quiet ones leads to burnout quickly. Know how much work you can realistically deliver well and price your projects accordingly, especially during peak demand.
Stable profit isn’t about hustling harder. It’s about designing your work to support your business, not the other way around.”
Annette Densham, Authority and Visibility Strategist, Award Writing Services
“No project is just about delivery. Even clients expect an ROI for the actual job bit, they often forget all the work that goes on behind the delivery that also takes time and impacts pricing like quoting, scoping, calls, follow-ups, thinking time, project set up and management, revisions, chasing approvals, invoicig. These are all jobs that take up time that many forget to factor into their pricing. I price projects like a package, not a timesheet. I outline the outcome and deliverables, then think about the everyday things I have to do to make it happen. I’m really clear about the scope of the work being done. In the T&Cs it’s in black and white what happens if the client keeps adding things or expecting more – a nicely worded email is sent, ‘sure we can do that but it will cost…’ That’s why your scope has to factor in project creep and delays because in my experience, despite the best laid plans, we’re humans working with other humans and that means illness, holidays, procrastination and any other reason that causes delays. The scope should also factor in what happens when they change their mind mid project. When it’s quiet, like those months between December and February, I don’t rely on projects, I’ve a mix of retainers and one off packages that gets me through. I plan for those quiet months financially, putting away savings to get through Christmas when it is traditionally go slow time in Australia. Many delay making decisions until the new year or push pause on their marketing. The only challenge with that is, waiting til the new year to get started on awards or profile building is a false economy because momentum is lost and the valuable planning time is happening with awards are open or opening and it becomes a rush – I factor that into my pricing. It’s a given that the start of a new year in Australia is culturally slow in business. I start thinking about the new year in October/November and locking in new clients because those quiet months are good for planning and project management – so when February hits, we are ready to hit the ground running.”
Greg Wilkes, CEO of Develop Coaching
“Volatile months don’t kill margins, poor structure does.
Project-based businesses get hurt when cash in and cash out aren’t designed upfront. You win a big job, feel busy, then margins disappear when timelines slip or costs land early.
Start by separating delivery margin from overhead recovery. Every project must stand alone financially. Price labour, materials and risk properly, then add a fixed contribution toward overheads and profit. If a job only works “because the next one is coming”, it’s already broken.
Next, stage your cashflow to match your cost curve. Front-load stage payments to cover materials and early labour. Don’t accept even spreads “to keep the client happy”. Your suppliers don’t work that way, and neither should you.
Third, run a rolling workload mix. Blend shorter, faster-turn projects with longer programmes. This smooths monthly income and stops one delayed job wrecking the month. Predictable margin beats lumpy turnover every time.
Finally, review jobs weekly against forecast margin, not just progress. Spot drift early. Variations delayed are profits lost.
Stable margins aren’t about hoping for good months. They’re about designing projects that protect you in bad ones.
Structure beats luck. Every time.”
Elise Balsillie, Head of Thryv Australia and New Zealand
“Unpredictable months quickly reveal whether project work has been designed to protect margins or quietly undermine them. When profit fluctuates, the issue is usually structure, not demand.
Business owners should anchor project design to cash flow. Breaking work into defined stages with clear deliverables and payment points spreads revenue across the life of a project and reduces exposure to quiet or overcrowded months.
Also, margin visibility matters just as much. If you cannot see which projects are tracking well and which are absorbing unpaid effort, profitability slips without warning. Reviewing margins while work is in progress allows scope, pricing or resourcing to be adjusted before small overruns snowball.
This is where connected systems make the difference. Thryv helps businesses stabilise margins faster by bringing project tracking, billing and customer communication into one connected view, replacing reliance on spreadsheets, inboxes and memory.
Resourcing needs to flex with workload. A clear split between core capacity and variable support allows businesses to scale delivery during busy periods without carrying unnecessary costs when demand softens. This protects margins without compromising service quality.
Standardisation also plays a powerful role. Project templates, pricing frameworks and communication checkpoints reduce rework and speed up decision-making. They free up time and protect profit at the same time.
Stable margins come from deliberate project design that holds under pressure, even when months look unpredictable.”
Maria Kathopoulis, CEO & Chief Marketing Officer at UNTMD Media
“The most profitable service businesses define deliverables, timelines, and success metrics upfront. Scope creep is the silent margin killer. PMI data shows that poorly scoped projects erode margins by 20–30% on average.
To stabilise cash flow, projects should be staged. Milestones protect revenue and align effort to payment. Retainers or rolling engagements smooth volatility, but only if utilisation is tracked weekly.
Capacity planning matters more than sales. Selling faster than you can deliver creates churn and reputational damage.
Healthy project businesses know three numbers at all times: utilisation rate, gross margin per project, and pipeline coverage.
If you don’t measure it, it will quietly destroy you.”
Sophie Muir, Founder of Maven PR and Muir Ventures
“To keep margins stable across volatile months, I structure project work with tightly defined scopes, deliverables, KPIs and fees. Each project is costed around the specific staff levels and hours required to reach the client’s objectives, with scopes clearly tied to the billable rates of those team members, so clients understand exactly what level of service is included. This transparency helps prevent overservicing and protects team capacity. Our short term projects are billed in full up front to support cash flow and I also make sure to maintain a base of retainer clients to smooth revenue fluctuations, while also being selective about under-priced one-off projects.”
Parteak Virmani, Business Services Manager, Polyglot Group
“If you want to keep your profit margins steady during those up‑and‑down months, the key is to set your projects up with clarity and flexibility from the start. Make sure you’re really clear on what you’re delivering, when, and for how much. This may sound simple, but it’s the easiest way to avoid scope creep and the surprise costs that tend to appear later.
After that, shift to using rolling forecasts. Combine what’s already locked in with what’s in your pipeline, and then add any seasonal trends you’ve seen before. This gives you early visibility into slow or busy periods, which means you can adjust resourcing before it impacts your bottom line.
When it comes to delivery, aim to build teams with the right mix of skills and costs. And when things get busy, it’s helpful to top up with contractors or nearshore support, because this gives you flexibility without adding long‑term overhead.
Finally, check in on performance every month. Look at utilisation, delivery costs, and margin targets so you can correct early and pivot quickly. With the right structure and rhythm, you can stay profitable even when demand moves around.”
Jasmin Hyde, Director, Hyde and Seek Communications
“Project-based work will always create revenue spikes and troughs. The mistake many businesses make is trying to smooth volatility with more projects, rather than better structure.
The first shift is separating delivery from commercial exposure. Fixed scopes with flexible resourcing protect margins better than hourly billing, which quietly transfers risk back to the business. Clear scope boundaries, staged delivery, and defined change controls are non-negotiable if you want predictable profitability.
Second, treat projects as part of a wider revenue system, not standalone wins. Retainers, phased follow-ons, or lightweight advisory support between projects help stabilise cash flow without bloating delivery teams. The goal isn’t recurring work at all costs, but predictable baseline income that absorbs quieter months.
Finally, margin discipline starts before a contract is signed. Build pricing from delivery reality, not market pressure. If a project can’t be delivered profitably with your current model, it’s not a pricing problem, it’s a structural one.
Volatility doesn’t disappear in project-based businesses. But with the right structure, it stops dictating your margins.”
Morgan Wilson, Founder & Director, creditte accountants & advisors
“Project-based work is great for flexibility, but it’s one of the easiest ways to lose margin if it’s not structured properly.
We see this all the time. Businesses price projects based on best months, then wonder why cash tightens when work slows or timelines blow out.
The fix isn’t working harder. It’s designing projects with volatility in mind.
First, separate delivery from pricing. Your cost base doesn’t disappear in quieter months, so your pricing needs to absorb downtime, not just active hours.
Second, build clear scope boundaries. Undefined scope is the fastest way to erode profit, especially when teams feel pressured to “just get it done”.
Third, smooth revenue where possible. Milestone billing or retainers tied to project phases help stabilise cash flow and decision-making across uneven months.
Finally, review project profitability monthly, not at the end. Small leaks become expensive problems when left too long.
Project work can be profitable and predictable. But only if it’s built on structure, not optimism.”
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