Managing resources to work better, not harder
Atticus recession series of special E-Lerts will provide you
with hands-on ideas on how to survive, and even thrive during
a recession, no matter how deep it might become.
resources.
- There is concern about having enough cash to meet the payroll.
- The same problems keep recurring despite repeated attempts to
fix them.
- There is never enough cash to carry the right level of
inventory.
- Customers are not paying on time.
- The bank is concerned because the business is at the top of
its operating line.
What strategy will allow the business to survive and prosper?
cash.
- Send invoices immediately upon shipment if the business sells
on terms.
- Ensure that you have an effective credit approval system; a
customer's financial condition can change quickly in an economic
downturn.
- Have a system for prompt follow-up with late-paying customers
and apply it consistently so that your invoice is at the top of
the payment pile.
- Sell any fixtures or equipment that you don't need to use.
- Investigate alternative financing arrangements. Despite the
credit crunch, financing is available if you know where to look.
- Cash is the life blood of a business so manage it every single
day. Use it wisely.
Example
On assessing their situation we discovered they batch-prepared
customer invoices, delaying sending many of them out for weeks.
Switching to a system of preparing and sending invoices when
goods were shipped eliminated the need for increased financing.
What does a well-run operation look like?
- Collection procedures are followed consistently.
- No assets are collecting dust.
- Eliminating people or advertising and marketing is rarely the
answer.
- Maximizes the use if internal and external resources to
implement action.
who helps clients focus on effective management of financial
resources. Reach Atticus by phone at 416.644.8795.
Atticus Interim Management,
1 First Canadian Place, Suite 3700, Toronto, ON, M5X 1C9
Copyright © 2008 Atticus Interim Management. All rights reserved.
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