During a crisis, cash is king. To have it or not to have it can create a huge difference as far as the probability of a company surviving is concerned. The question is: how can I generate cash in the short and medium term?
The answer lies in the optimisation of your working capital.
- The first measure to implement is to have a look at your production business and get rid of all the assets that do not generate value (machines lying unused, parts never to be sold that can be scraped, buildings that could be rented,...).
The second measure is to increase the productivity of the employees to decrease the production lead time and thus have less materials blocked in the process. - The third measure is to equilibrate your production chain to get rid of the semi-finished goods.
- The fourth measure is surely to pay your suppliers later and try to get money from your customers by offering attractive conditions.
All of these measures have to be implemented as soon as possible to save cash. Remember, cash is king. Do not hesitate to contact us to discuss this subject in more details.
No comments:
Post a Comment