Fanshawe-Lofts

Sudden or major loss of revenue - deal with it effectively

A sudden or major loss of revenue disrupts cash flow and undermines confidence.

In business life, the unexpected happens. No matter how good the relationship with a customer, it can come to an abrupt end. Suddenly, your best customer is no longer in a position to do more business with you. Or, worst case scenario, they cannot pay for goods and services already supplied.

To deal with the situation effectively, concentrate on four areas:

• Avoid panic action.
• Mitigate the impact of the loss as soon as possible - do not delay in the hope that 'something will turn up'. If overheads have to be reduced, then reduce them on your own terms and on your timetable. Don't wait until circumstances take over.
• Look at what can be salvaged from the situation. You may suddenly be free to talk to a customer's competitor, or to take a hard and constructive look at the future of the whole business.
• Have an early and thorough conversation with the experts. Fanshawe Lofts can advise in a number of crucial areas; from funding options in the short term, to strategic planning to ensure that the business is better equipped to avoid nasty shocks and to deal with them quickly if they do happen.

Useful Links

• Raising Finance
• Corporate Recovery Turnaround and Insolvency

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