Like so many businesses during coronavirus pandemic, a specialty manufacturing and distribution company received PPP funding but was still faced with customers that were partially or fully closed, uncertain revenue prospects and mixed opinions on hiring and re-hiring.
While management was looking at cash flow, past attempts at forecasting had lacked accuracy. A revised 13-week cash flow process was established, including material weekly updates, and twice regular reviews with the CEO. Collections and future sales were revised with conservative estimates, providing a look into how much cash was left to cover expenses so that decisions could be made proactively. Also, deferral amounts for payment agreements and rent and loan deferrals were clearly calculated and updated to understand near term and longer term potential cash position.
Fintrepid Solutions developed a planning forecast and multiple sets of assumptions allowing management to visualize different scenarios and contingency plans. By exploring the “what-ifs” with the CEO, clarity could be attained around what could happen based on certain decisions within the business.
Drawing on years of experience with over 75 evolving companies, Fintrepid Solutions served as a key voice alongside the management team, both bringing forth ideas and helping evaluate others.
The CEO and management team were able to more confidently set overall direction, and make nimble, proactive decisions while knowing the potential capital needs to get there. A new inventory management and margin strategy was implemented, opening the door to new customer opportunities. A re-hiring plan is being executed and roles and responsibilities have been modified to ensure the highest ROI on human capital. Where survival was once very much in question, the company now has a path to stability and longer-term growth despite continued uncertainty.GROW BOLDLY fintrepidsolutions.com