I am really delighted to be teaming up with Susan Royce to share some guidance, pointers and general support over the coming weeks. We have both been through various downturns and a recession but the current situation is unprecedented and we feel that the more we can share and work together the better. Over the next two days Susan will be sharing ten lessons learnt that we will then build on in terms of offering tools and approaches to help you respond to your particular situation.
Managing a financial crisis: what I have learnt
I’ve worked with clients in crisis for much of my career starting off in the dim and distant past with Black Monday in 1987. Here is the first set of five pointers I have learnt from all the successes and failures since then:
- This may sound obvious but try not to be an ostrich and stick your head in the sand. This situation is not going to go away quickly and is most likely to get harder to deal with rather than easier.
- Take action even when you don’t have all the information that you would like. In most situations inaction is much more damaging than an action which proves, in retrospect, to be less than ideal.
- Be open and honest: secrecy will reduce your ability to find solutions.
- Focus on your cash position: without cash you are sunk but a damaged balance sheet can be rebuilt.
- Ensure that you have up to date information on key financial measures: you don’t need to know everything and not every number has to be accurate, but you must know where you stand financially on a daily/weekly basis.
The next five pointers will follow tomorrow. If you have any questions or particular concerns do let us know and we’ll do our best to offer some support.
Susan & Dawn