Business Turnaround Planning COVID 19 Crisis Winston Rowe And Associates
Businesses need a strategic turnaround plan to recover from the COVID-19 pandemic because it's unclear how long it will be with us. This article offers great advice.
By: Winston Rowe and Associates
1. Employ the tool used by every competent turnaround professional:
2. If the plan shows you will run out of cash, create an action plan to reduce costs and/or increase revenues and collections. Important: Convene a meeting of your most capable managers, review with them the cash plan and every line item on your financial statements and solicit their input and ideas about how to increase cash, increase revenues and decrease costs.
3. Implement purchasing controls so that only expenditures specified in the cash plan are made. Define who has authority to approve which expenditures, in what circumstances and in what amounts. What other approvals, if any, are required?
4. Eliminate non-vital expenses.
5. Unneeded assets? Old, slow-moving inventory? Try selling these at a discount.
6. Stop producing money-losing products and providing money-losing services. One troubled company joke is, "We're losing money on every job, but we'll make it up in volume." If you are unsure which are money-losing products or services, engage a professional who can quickly analyze the numbers.
7. Accelerate receivables collections. If your business is not totally cash or credit-card-
8. Too often, troubled companies specialize in selling to customers that do not pay. This problem is often exacerbated in times of stress.
Require clients to pay cash in advance and design a fail-proof internal system to ensure that your company receives payment before providing its products or services. This benefits your customers, too, by ensuring that they can obtain needed materials and services.
9. What opportunities for additional revenue do you have in the current environment?
10. Monitor the kinds of assistance available for your business and confer with your professional advisors (tax, employment law) to ensure you comply with current requirements.
Winston Rowe and Associates may have capital sources in place that may be able to assist business.
They can be contacted at https://www.winstonrowe.com