The theme that came through from ‘Broken Cashflow’, was to get certainty on your sources of revenue, then build them into a cashflow forecast of meaning as a key tool internally and externally when seeking funding to make your way through:
Take action now on costs, and on the conversations that need to be had. Pay only what is essential. Don’t burn cash, keep every cent in reserve.
Don’t put your head in the sand – It’s hard dealing with this when you’re physically distanced from colleagues and the wider business community, but understanding the context of your business, your sector, and your country is vital to navigate the best path through.
Have the hard conversations – don’t just stop paying suppliers, banks and landlord’s without any communication. Reach out, explain your situation, and don’t necessarily push for a resolution straight away, open a dialogue.
The easiest solutions to cashflow are internal – talk to your customers about trade terms, greater amounts payable upfront, discounts for upfront payment. Turn to your board and shareholders to work through what capacity there may be for funding before you turn to external resources.
Make a plan for now, and a plan for when your market opens again, both based on reasoned assumptions. These recovery scenarios will be highly useful when dealing with external parties for funding.
Don’t look for magic bullets – there are none – while there is help and assistance, you have to own the preparation and narrative to convert the many potential avenues of support into reality.
Again, get certainty. Get certainty at a granular level on your customers and revenue. Build well reasoned assumptions to get certainty into your cashflow. Then use these to help drive certainty on your liquidity through support from shareholders, landlords, banks, Export Credit NZ etc.