We are currently living through very turbulent times wherever we may be on this planet.
Who knows what our businesses will look like on the other side, always assuming we make it? Such conjecture though is for tomorrow, now is the time to devote all our energy to battening down the hatches and doing all we can just to survive. The time for DISASTER RECOVERY will (hopefully) come later. For now it’s all about survival and in this context the thing that should be at the forefront of everyone’s mind is CASH IS KING.
Managing financial risks in crisis mode is all about cash flow. For many businesses this will be the most acute financial crisis they have ever faced. Every organisation is juggling remote working, staff absences (or immediate heightened risk of absences) and income uncertainty and this is especially so for those businesses operating in the front-line travel and hospitality sector.
Be realistic about how much any crisis management activities might cost. Review your upcoming costs and delay any non-essential costs to protect cash flow. Any planned expenditure for now should almost certainly be put on hold, at least until the dust settles and a way forward can be clearly seen. With so much uncertainty around cash flow, forecasts need to be prepared under various scenarios. We are in unknown territory so there is a need to think through some worst case scenarios. ‘What if…’ questions have never been more relevant.
And finally before making any drastic step-change decisions, ensure you have considered all ways of managing cash through operational measures, borrowing etc and have taken professional advice if necessary. You might not have been, but others have lived through such crises before and lived to tell the tale!
As “been there, done that” professionals, we’re here for you.
