For many recruitment businesses the option of ‘delay, wait and see’ has become increasingly unviable. Businesses will need to adapt to survive. Any funding shortfall coronavirus has caused requires careful planning, execution and management.
Making sure the business has a clear strategy as to how it will not only survive the downturn, but also be well positioned to thrive again under the new normal is key to bouncing back.
Businesses that survive and thrive will be those that:
- Adapt to the new normal.
- Act quickly and decisively.
- Bring stakeholders along.
Cash flow and funding remain key:
- Lenders are utterly overwhelmed.
- Loan applicants are now competing for lender attention.
- Mixed messages about what lenders need and practical operation of support not well understood (ie guarantor of last resort).
Navigating new and evolving landscape of government support is critical:
- Loans: CBILS, CLBILS, Future Fund, Bounce Back facilities.
- Coronavirus Job Retention Scheme.
- Tax deferrals.
- Being prepared and executing well has never been more important.
- Companies are competing for a limited resource: stakeholders’ time and attention, especially lenders.
- Get your forecasting and modelling right, ‘the curve’.
- Consider all the downsides.
- Ensure all government assistance is included in the plan.
- Run through your funding options – scan the horizon for all there is.
- Consider all options from ‘easier’ – existing lenders / stakeholders to ‘harder’ –new money.
- Clients should play to their strengths.
- Where needed get help to augment existing resource, knowledge or capability.
Some key questions to answer
- Have you done all you can to preserve cash?
- Are you managing supplier payments and relationships proactively?
- Are your contingency plans robust? Have you planned for worst case eventualities?
- Have you considered all the options available?
- Are your forecasts accurate, consistent, easy to update and presentable?
- Are you in dialogue with alternative funders?
- Is your lender request document fit for purpose?
How RSM can help
We have a modular, integrated advisory offering to help with:
- Liaison and negotiation with bank.
- Developing a cash flow forecast model.
- Preparing a lender request document.