Learn: financial difficulty

Building a realistic turnaround plan on one page

Directors sometimes think a recovery needs a thick strategy document. It does not. One clear page, kept honest, does more than fifty that gather dust.

Cause

Write down, plainly, what went wrong — a lost contract, a bad debt, rising costs, over-trading. You cannot fix a problem you have not named.

Cuts and cash

List the costs you will cut and by when, and the cash actions you will take: chase debtors, renegotiate terms, pause non-essential spend. Put numbers and dates against each.

Checkpoints

Set weekly checkpoints to compare plan against reality, using a rolling cash-flow forecast. Adjust as you learn. A plan you actually review beats a perfect one you file away.

Share the plan with creditors — including us — to support an arrangement.

We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.

See also: Building a recovery plan after a difficult period, Building a thirteen-week cashflow forecast, Restructuring costs to protect your business.

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