Part 1 (today) - Immediate Tasks and Objectives

Part 2 - Common Obstacles the CFO May Encounter

Part 3 - CFO Mistakes and Blind Spots

Part 4 - Support Needed To Navigate a Complex Process

IMMEDIATE TASKS AND OBJECTIVES

When a CFO aims for “Cash Flow Stability and Financing Optimization” while operating in a "Turnaround to Growth Situations," there are important steps necessary to gain control of the organization's financial health. These actions ease financial pressures and lay the groundwork for sustainable growth and financial health, enabling the CFO to optimize the company’s financial structure while better managing the company’s return to competitiveness and profitability.

Getting Cash Flow Stability and Financing Optimization right will reflect on the capabilities of the CFO and serve as a reference for their future business growth opportunities.

The objectives and key tasks that the CFO should aim to achieve are multifaceted and critical to the company's survival and future growth, they reflect his or her comprehensive responsibilities and goals when in critical financial and operational scenarios.

Step #1 - A Thorough Financial Assessment

There is no way around it. Begin with a comprehensive review of the company's current debt obligations, interest rates, debt maturity profiles, terms and conditions that add-up to the cost of capital, with the aim to understand the cash flow pressures they impose. If you don’t have the time or the objectivity for a situation analysis, outsource this to CORNER or to an accounting firm.

Stabilize the Company’s Financial Health

Identify areas for immediate improvement, negotiate with lenders, while working to secure new financing options if they don’t budge. Establish a stable financial foundation by restructuring current debt or refinance under better conditions that reduce the financial strain on the company.

Ensure Sufficient Liquidity and Robust Cash Flow Management

Optimize working capital management, enhance cash conversion cycles, implement rigorous cash flow forecasting, and manage credit controls. Prevent cash shortages that can cripple daily operations by connecting with strategic capital sources that can cover any unexpected cash shortfall.

Guide Strategic Turnaround and Growth Initiatives

Use the services of an unbiased strategic capital consulting service, such as CORNER, to find funding sources who can work with you to pivot or transform the business strategically, to address market changes or opportunities where your current funding source will not go.

Build and Maintain Stakeholder Confidence

Keep stakeholders regularly informed of your strategic actions that focus the company towards growth. This will help restore credibility with employees, vendors and creditors, which is crucial for the company's reputation and ongoing access to capital.

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