Please enable JavaScript.
Coggle requires JavaScript to display documents.
Cash Management during Covid-19 - Coggle Diagram
Cash Management during Covid-19
6 Steps to Cash Management
Determine demand impact + liquidity needs
Drive liquidity into the business
Prioritize short term needs to ensure long-term success
Prioritize spending to preserve cash
Aggressively manage to a new and nimble plan
Be ready to adapt as situation unfolds
Does this situation change short-term business objectives?
Determine cash needs based on budgeting scenarios, assuming significant drop in demand
Reforecast 2020 budget taking into account mitigating actions to reduce expenses and increase cash
Adhere aggressively to the new budget with regular reporting to inform corrective measures
Determine clear thresholds to trigger additional spend reductions
Adapt the plan to account for the latest information and its impact to the business
What costs reduction activities are "no regret" moves?
Freeze all non-essential hiring
Cancel all travel and/or training that is not operationally-critical
Consolidate or Centralize organizational functions
Review + renegotiate any contracts/agreements
Pause/furlough contigent workforce
Freeze marketing/advertising
Extend payables with suppliers to preserve cash
How to Inject liquidity into the business with constrained demand
Drawing down credit lines to bolster cash balance
Empower sales by being aggressive with pricing, packaging and products
Frontload sales with controlled volumes or discounts = urgency
Convert fixed assets to cash where feasible
Extend payables with suppliers to preserve cash