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Chamber hosts Leaders Online: Cashflow Management Strategies

Posted on: 03/26/2020

FORT WORTH, TX – Today the Fort Worth Chamber of Commerce hosted Kit Ulrich, founder of Defend the Fort and CEO/Founder of Coeur Ventures, in its Leaders Online discussing cashflow management strategies.

The event, originally scheduled to Livestream to Facebook, experienced technically difficulties and was only able to stream via Zoom. However, the full event is now available on Facebook here.

Ulrich recommends business owners review revenue and cash daily (rather than weekly), build forecasts with multiple scenarios, for at least three to six months, and stress test cash flows.

In terms of cash management, Ulrich urges businesses to negotiate all payables (especially rent) with the goal of either reducing or deferring payments, to be creative by asking for equity, and to keep asking. Business owners can boost cash on hand by accelerating receivables by pulling forward cash (ex: gift certificates) and drawing full cash amounts on credit lines.

Business owners should negotiate with lenders to defer principal payments and waive covenant tests for several quarters.

In terms of cost management, stressed the importance of making difficult decisions early on. This includes implementing a hiring freeze, deciding between keeping employees, making layoffs, or salary cuts. “Deep cuts are better than three cuts,” said Ulrich, in regards to making cuts and laying off employees. Making cuts a second time, or even a third induces a fear-based environment.

Don’t forget to pay attention to your employees who are staying, though. “Over-communicate with the employees who stay. It is impossible to over-communicate right now.”

Additionally, cut all non-essential spending. Negotiate all contracts and prepare to be negotiated with.

To close, Ulrich urged business owners to take a moment to focus on themselves before navigating their cash flow and these decisions. “You cannot creatively problem-solve your business if you are in a state of fear.”

Leaders Online, an alternative to in-person programming, was created to assist Fort Worth Chamber members with obstacles related to the COVID-19 pandemic. Leaders Online features industry experts via virtual livestreams to answer questions and guide local employers in situations they’re likely not familiar with, associated with COVID-19.

The Fort Worth Chamber of Commerce will announce next week’s topics and speakers soon.

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About the Fort Worth Chamber of Commerce

The Fort Worth Chamber of Commerce, with 1,700 member businesses, is one of the largest chambers in the North Texas region. Through its core functions of business attraction and retention, talent development, small business and entrepreneur support, and government advocacy, the Chamber’s vision is to drive the Fort Worth region to be the most thriving, inviting community for all. Contact the Fort Worth Chamber of Commerce at (817) 338-2491 or visit http://www.fortworthchamber.com/

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