To safeguard cash flow while cutting costs, do the following: (*)See the financial health of the organization to ensure enough liquidity is available to cover current obligations. (*)Arrange or negotiate a short term fund from a bank to manage day to day operations. (*)Put more effort in recovering the receivable from the market. (*)Negotiate with vendors to increase the credit period, allowing more days to have inventory turnover. (*)Do the value chain analysis, and identify the personnel or departments don't adding significant value from customer perspective. (*)Initiate the cost cutting measures by doing point 5. (*)Keep using the statistical techniques for forecasting the revenue. (*)Placement of funds in TDR to get good profits

During a recession or financial crisis, managing cash flow becomes very tricky. As a CFO, whether in a startup or a large company, I’ve often faced situations where cash is tight, and every spending decision has to be precise. Many people may suggest cutting costs here and there, but it’s important to be smart about which costs to cut. You need to balance saving money while still keeping the business running smoothly and in compliance with regulations. A practical approach is to prioritize spending on essential operations and carefully evaluate where you can reduce costs without harming the company’s long-term goals.

Cutting costs is a great place to start, but if you stop there, you will miss out on potential revenue sources available in your existing assets. I often ask clients, “What do you do with all the leads who don’t buy from you?” 99% of the time, the answer is, “Um…nothing.” They are losing revenue because they don't have a plan in place to make the most of the leads that they get. The same goes for their existing customer or client list. We all know that someone who has bought from you is statistically more likely to buy from you again, but unless you develop a strategy to increase lifetime value (LTV), you will pass up potential gains!

Para alcan?ar esse equilíbrio, adotar uma abordagem estratégica é fundamental. Reavaliar todas as despesas permite identificar gastos que podem ser eliminados sem comprometer a qualidade ou a opera??o do negócio, priorizando o que realmente agrega valor. Negociar melhores condi??es com fornecedores ou buscar alternativas mais econ?micas também pode gerar uma redu??o significativa nos custos, sem prejudicar o relacionamento com parceiros chave. Além disso, acelerar o recebimento de pagamentos através de incentivos para clientes que pagam antecipadamente n?o apenas melhora o fluxo de caixa, mas também cria uma maior previsibilidade financeira, permitindo que a empresa tenha mais seguran?a para navegar em tempos incertos.