2. Maximize cash flows
This is “meat and potato” stuff, but essential!
- Reducing to a minimum the cash “float” in the enterprise
- Not just stretching out accounts payable, but working a program to reduce the absolute amounts due via fast pay incentives
- Program to move old, slow inventory
- “Aggressive management” of accounts receivables
- Consideration of factoring of receivables if not already done
- Credit management review
- Consider incentives for customers to “prepay” (a beneficial but tricky maneuver)
- Sale of non-core assets
- “Squeezing” space to create the opportunity for sub-lease income
- Analyze all items of expense and find ways to reduce the amounts (there are always ways!)
- Rework sale terms and conditions, including pricing
- Analyze sales and marketing efforts and programs for those that offer a rapid ROI as measured on a cash-on-cash basis
