Business Strategy Cash Management Debtor Management Successes Turnaround Workforce Services

Workforce Services business recovers from severe business interruption

This niche Labour Hire/Recruitment business was small but growing rapidly and had expanded into several states based on securing a number of blue-chip clients. It had suffered a major business interruption due to a major client going into administration. With a large debtor balance unlikely to be paid, the focus was on determining business viability and strategy for trading through the difficult times ahead.

We developed and implemented a Strategy together with the management team, with priorities to:

  • Cash Forecast – implemented accurate short-term (12 week) cash forecast quickly;
  • Action Debt Recovery via the client’s Administrators (as much as possible);
  • Debtor Management – Tightened up other outstanding customer debts to improve collection days, including training operational staff to deal with new customer terms;
  • Review Operational Expenses – implemented KPI reporting to track operational performance by site and identify cost savings across the business;

Result: While the business interruption was severe, the strategy successfully avoided it becoming a catastrophe for the business. It reduced substantially in size but was able to continue trading.

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