You're facing a financial crisis during an economic downturn. How can you ensure your business survives?

As financial planners we are acutely aware that economic downturn events happen. Which is why it is so important to have a plan for such events. We spend considerable amounts of time talking with our clients about how we will weather the storms that will come. By staying focused on long term goals and the plan we can be less bothered by economic down turns.

La gestión del flujo de caja es esencial para la resiliencia financiera de una empresa durante una crisis. Las estrategias como la reducción inteligente de costos, la renegociación de términos con proveedores, la optimización del inventario y la aceleración de la conversión de ventas en efectivo, combinadas con una reserva de efectivo bien administrada, son fundamentales para mejorar la capacidad de una empresa para sobrevivir y prosperar en tiempos difíciles. Implementar estas prácticas no solo ayuda a mantener la operatividad, sino que también fortalece la posición financiera de la empresa, preparándola para cualquier desafío económico que pueda enfrentar en el futuro.

Fiscal discipline differentiates those that manage successfully in downturns. Debt can be a useful tool, in appropriate quantities. Accessing capital markets to market bond offerings can be used to blend down WACC.

Acredito que ao perceber qualquer sinal de crise, se faz necessário revisar as estratégia pois cada passo será fundamental para a sobrevivência da organiza??o. Quando falamos em fluxo caixa, as estratégias se torna ainda mais vital. Revisar os contratos a pagar e a receber, as despesas fixas e custos operacionais é fundamental. Manter um fluxo de caixa estável proporciona tranquilidade para planejar reservas para possíveis enfrentamento de crises.

Para asegurar la supervivencia de un negocio durante una crisis financiera en una recesión, priorizaría la reducción de costos y la optimización de operaciones. Revisaría y ajustaría el presupuesto, renegociaría contratos y buscaría oportunidades de financiamiento o subsidios. Fomentaría la diversificación de ingresos y fortalecería la relación con clientes existentes. También adaptaría la estrategia de marketing y exploraría nuevas oportunidades de mercado para mantener la relevancia y la estabilidad.

Tive uma experiência em ter que gerenciar dívidas com muito critério e zelo, pois só dessa maneira conseguimos sobreviver sem comprometer as opera??es.

True. Debts are used to fore the engines for growth as you need more money to grow and often your own capital may not be sufficient enough. In times of crisis or downturn ,restructuring of debts should be done with difference scenarios including deferring interest payout for sometime etc etc. also looking at market to get cost effective debts is also possible. In tough times money is in supply as not much development happening. So make use of that.

Interesting. This was followed by many during Covid timeframe. Organisation looked at different market and products to diversify to to manage sailing thru tough times. Somebody who never sold any services in financial sector looked at that as an options. Also whichever industries became growth oriented like it/digital became very demanding during Covid as everybody was on digital mode. So yes diversification is critical.

Quando falamos de receitas, acredito que toda empresa tem que possuir múltiplas fonte, pois assim consegue atuar com maior flexibilidade diante de qualquer emprevisto.

Yes and it’s obvious to have efficiency in business more so in downturn stage. Do more with less in the key in these tough times. Making sure we are utilising resources was well and worth the cost.

Very critical to hold on to your customers/work there impasse tough times. For that you may need to accommodate clients for various requirement they may have. Sometime price reductions etc are common in tough times. Have a short term arrangement to have win win situations.

Plan, plan, plan! You will not capture every risk and not every scenario has a ready made contingency - but knowing how agile and resistant your business can be, and what your strengths and pressure points are, can make the challenging times of uncertainty less difficult. Remember, there is always an option.