Over Time, Over Budget—Now What?

I was recently brought into a business that found itself in deep water. A major product launch, full of promise and potential, had unraveled. The project was six months behind schedule and had already blown through 80% more than the original budget. The owner was frustrated, the team was tired, and the financial strain was becoming harder to ignore.

The good news? The business didn’t carry much debt. But the bad news was that cash flow was hurting—badly. Vendors weren’t being paid on time, payroll was starting to get tight, and stress levels were creeping upward. The project had become a liability instead of the growth engine it was meant to be.

Getting Clear on the Numbers

This is the kind of moment where panic is the natural reaction—but it’s also the least helpful one. So we stopped, took a breath, and got everyone in the same room. The goal wasn’t to assign blame. It was to get a clear view of the situation. What had gone wrong? Where was the money going? How realistic were the current projections? We went through everything—line by line!

Once we had clarity, we shifted to diagnosis. I built a financial model to analyze where things stood and where they were headed if nothing changed. The forecast wasn’t encouraging. While the business still had cash, the runway was short, and the burn rate was unsustainable. The owner realized this wasn’t just a delayed project—it was a risk to the entire business if not handled quickly and carefully.

Building a Recovery Plan

That’s when we started rebuilding, one decision at a time. We began by re-scoping the project. We identified what was essential for launch and stripped away everything that wasn’t delivering clear ROI. That alone cut a meaningful chunk of the remaining expenses. Then we looked at vendor relationships. Some contracts had grown bloated, and a few vendors were operating without clear accountability. We renegotiated where we could, dropped what wasn’t working, and even pulled some tasks in-house.

We also took a hard look at the timeline. Instead of pushing for unrealistic deadlines, we created a new schedule with milestones grounded in reality. At the same time, I implemented strict expense controls—weekly reviews of cash burn and mandatory approval for any additional spend. These weren’t just financial tools; they were confidence-building measures. People felt like they were back in control. In other words, we re-engaged the team. Everyone saw the numbers. Everyone understood the stakes. And everyone had a role to play in getting things back on track.

Lessons Learned

So what should you do if you find yourself in a similar situation? First, don’t assume that pushing harder will fix things. Sometimes you need to step back and reset. Get your arms around the numbers. Where exactly is the money going? What’s still needed to finish the job? How much cash do you really have left to work with?

Second, be willing to re-scope. Too often, teams fall into the trap of sunk cost thinking—"we’ve already spent so much, we can’t stop now." But continuing to pour resources into parts of a project that no longer serve the mission is a fast way to go broke.

Third, communicate—up and down the organization. Keep your vendors, team members, and partners in the loop. Surprises break trust. Transparency buys time.

Fourth, consider bringing in an outside perspective. When you’re too close to the project, it’s hard to see clearly. A fractional CFO or experienced third party can give you the clarity and objectivity needed to make tough calls.

And finally, remember this: even a six-month delay and an 80% budget overrun can be salvaged with the right approach. Projects go off track. It happens. But that doesn’t mean they’re doomed. With calm leadership, financial discipline, and a willingness to course-correct, recovery is possible—and sometimes, it’s the moment that sharpens a business’s edge for good.

If you’re dealing with a project that’s spiraling or a cash flow problem that won’t go away, don’t wait for it to fix itself. Reach out. This business was fortunate not to have debt—if your business does carry debt, it becomes even more important to bring in a CFO before launching a major project, both to avoid situations like this and to clearly understand the financial impact if things don’t go as planned. Sometimes, the solution isn’t more hustle—it’s a smarter strategy.