If you are running out of cash and face imminent threat to your survival here’s a recipie to survive;

I. Find the margin and cut everything else

Focus on your core activities and stop doing anything else immediately.

Never try to sell your way out of losses.

Within your core business identify add-ons with low profit margin and price them out, i.e. increase prices to premium level.

Identify customers with vey low margins and increase prices.

II. Collect cash early

Start chasing overdue invoices now. Contact other customers and offer them 5% discount if they pay in 10 days.

III. Negotiate vendors

Call your accountant and ask for a list of payables (+when they are due). Also ask for a summary of regular monthly expenses. Start calling your vendors, explain the unpleasant situation and negotiate extended payment terms.

IV. Sign off all payments

Revoke all bank access and payment rights, except for yours. Cancel all bank (credit) cards and keep only 1. From now on, you approve all cash transactions

V. Downsize radically

Reduce all non essential staff to critical roles only. Continue downsizing until you need to hire back. That’s your critical spot.

Reduce office space, software seats, any operating capacity that is non-critical to your business.

VI. ‘uncapex’

Sell all non-assential assets. At steep discount. Cash is more important than profit.

Lease back fixed assets that cannot be sold.

Strike quick deals to rent or license your assets incl. intelectual property.