Managing your Cash Flow during the COVID-19 crisis with Alan Miltz

Managing your Cash Flow during the COVID-19 crisis with Alan Miltz Date(s) - 01/04/2020 - 02/04/2020
8:00 am - 9:00 am


Preserving Cash is Critical
In this difficult time, it has never been more important to understand and manage your Cash Flow so you can preserve your cash.
In any given business there are up to 7 critical levers that impact your Cash Flow, collectively we call them The Power of One:
Price; Volume; Cost of Sales/Direct Costs; Overheads; Receivables; Inventory; Payables.
Understand your “Power of One”
It is important to make sure you understand which levers are most sensitive within your business. Do you know what a 1% or 1 day change in each of the 7 levers will do to your Cash Flow?
With this in mind, you now need to stress test your business. For example, what happens if:
Revenue drops by 50%
Collections blow out by 60 days
Suppliers remove terms in order to supply
You can use these simple scenarios to understand how far away from, or into, crisis you are.
Crisis-proof your Management Team
It has never been more important for your entire management team to understand your Cash Flow and the levers they can impact to minimize your risk. It is critical that everyone in your management team understand the stakes.