The first 30 days
of a turnaround.
Before a business can move forward, it needs a reliable view of where it stands. Start with cash, continuity and the decisions that cannot wait.
Start with a shared picture of cash
In a stressed business, different teams can hold very different versions of the cash position. Finance sees the ledger. Operations sees the payments needed to keep production running. Sales sees expected collections. The first task is to bring these views together into a forecast that can be used for decisions.
A rolling short-term cash view is often more useful at this stage than a polished annual plan. Make the timing of receipts and payments explicit, distinguish committed items from estimates and record the assumptions that need to be checked. The value is in a forecast that is refreshed and challenged regularly.
Protect operating continuity
Not every payment has the same effect on the business. Identify the people, materials, utilities and services required to preserve a viable operation. Understand where a missed payment could interrupt production, damage a customer relationship or increase the cost of restarting.
This is also the point to establish decision ownership. A payment process that is both controlled and workable helps prevent urgent requests from becoming the only basis for allocating scarce cash.
Separate symptoms from causes
Liquidity pressure may reflect delayed collections, inventory build-up, weak margins, excess capacity or a debt structure the business can no longer support. These problems can appear together, but they require different responses. More funding is not a complete answer if the operating model continues to consume cash.
Look at product and customer economics, working-capital cycles and the cost of maintaining activity. The objective is to identify a business core that could support a credible plan, and to be clear about what is still unknown.
Make the next month decision-led
The first month should produce more than an information pack. It should establish the immediate decisions, the evidence needed for each and the people responsible for acting. A simple rhythm of cash review, operating review and stakeholder communication can keep the effort focused.
A turnaround rarely follows a neat upward line. The early measure of progress is often better control: fewer surprises, clearer priorities and a more realistic basis for choosing what happens next.
THE TAKEAWAYControl cash, protect continuity, diagnose the cause, then choose the response.
A general perspective for discussion, not advice on a particular matter. The appropriate approach depends on the facts and applicable requirements.
EXPLORE THE RELATED DISCIPLINERestructuring & turnaround