Crisis Solution, Viability Plan
This is based on the three key pillars:
- Strategic viability
Analysis of the situation in the sector and of the business typology.
- Economic Viability
Manufacturing costs, market situation, gross and net margins.
- Financial Viability
- According to how the aforementioned factors are combined, a decision will be made to choose from the following alternatives:
Continuity/Refocus of the Company.
Seek a Financial/Strategic associate.
Sell the Company.
One of the key points in situations of crisis, and that which is least considered, is that there is a deadline by which decisions must be made, and businesses frequently make the mistake of seeking the advice of a consultant once the situation is almost irreparable. It must be borne in mind that the key factor that leads to tendering is ready cash. A situation of crisis is characterised by the progressive decrease in cash until it is not possible to confront one’s commitments, thus provoking a block on the company.