Preserving Working Capital – Contracts, Debits & Other Expenses

Cost Management Specialists view cost management from a revenue perspective.

Previous articles on revenue risk did not have the luxury of hindsight on impact of lockdown on revenue for so many businesses and so many staff. Revenue for both business and individuals has reduced, or ceased in many industries, for the foreseeable future.

Survival has become the first challenge for any business whose revenue has reduced but whose costs have not reduced proportionately. 

Predictably, because it is often a major expense, labour has become the 1st casualty of revenue decline in a corona-virus economy. The capability of key personnel, post disruption, is a key revenue driver. An investment to be managed more than a cost to be reduced.

Preserve working capital. A ‘set and forget’ mentality, based on pre-corona-virus sales levels, reduces working capital to invest in future success.