How much do you risk today to be open tomorrow?
CEO/Owner Reality Check
- How much new working capital to re-start?
- What is “new” normal and how long until cash breakeven?
- How do I get support of my bank and creditors?
- Where am I going to get the capital
- Are there strategic alliances or combinations to attract capital
- Identify personal risks if re-start fails – if over 55, can I recover?
Assess current state:
- Cash – any excess assets to be sold (excess inventory, equipment)
- Accounts receivable – what is collectible and over what time
- Inventory – how much is useable in next 120 days to support sales?
- Trade payables – how much past due? Are there payment plans
- Landlord – how much deferred and when is payback?
- Senior lender – are lines maxed out? Over-advances? Defer principal
- Employees – which ones are necessary and available?
- Customers – which ones are re-opening and at what level?
- Vendor sourcing issues
Develop Re-Start Plan – weekly through 12/31/20:
- Sales / shipping projections by week through end of year
- Inventory purchasing projections by week through end of year
- G & A by week through end of year
- Cap Ex by week through end of year
- Debt service payments by week through end of year
- Stress test – define range of capital needed
Next Steps
- Define range of working capital needed – add 20% cushion
- Define sources of infusion – new lender / personal funds / house 2nd / family-friends
- Define potential business combinations / joint ventures to attract capital
- Create 3 to 5 year plan for purposes of restructuring pre-COVID debt.
- Meet with Bank and Creditors to obtain their consensual support
- Seek professional help to aid in 3rd party negotiations and be a “sounding board”
Here’s What Bruce Can Do to Help.
Bruce will have an initial meeting to discuss any and all issues which may be of concern and help devise a path to help you conquer your re-start. These typically last for up to 1 1/2 hours and will generally produce a list of action items and research to be done. This initial consultation is free.
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Bruce Conklin has worked with over 145 wobbling companies in his 30-year career. His passion is working alongside business owners and entrepreneurs, who are some of the brightest, fiercest, most driven and fun people to be around.
Bruce has learned the best defense is to act quickly and decisively, develop a realistic plan and preserve capital, and the best offense is to be positioned to pounce when the market turns.
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