When a company hits a difficult patch, the instinct is often to cut hard and fast across the board. A more durable approach is to restructure deliberately: protect what generates revenue and reduce what does not, so the business comes out leaner rather than weaker.
A measured way to review costs
- Separate costs that directly win or deliver work from costs that merely support it.
- Look for subscriptions, licences and services that have quietly become unused.
- Review supplier contracts for better terms before cancelling outright.
- Consider whether some fixed costs can become variable, so they flex with demand.
Protect your capacity to earn
Be careful about cutting the things that bring revenue in: sales effort, the people customers rely on, and the quality that keeps them loyal. Cutting too deep there can shrink the business faster than the savings help. The aim is a cost base the company can sustain through the trough and scale back up in recovery.
If restructuring frees up cash but the timing is awkward against a Credicorp Flex or Credicorp Slice repayment, talk to us. We may be able to adjust the schedule for a period while your changes take effect, so a sensible recovery plan is not derailed by a single difficult month.
See also: How can better credit control ease our cashflow pressure?, How can a seasonal business manage the quiet months?, Building a realistic recovery plan after a difficult period.