What if We Need Help but We Have No Cash?
It is generally the most efficient and least expensive option to bring in an experienced turnaround consultant from Leeb Partners to address the issues quickly and produce results with time-tested ideas that work. We function in a cooperative and coordinated manner with the client’s employees to implement change as rapidly and as efficiently as possible.
Credibility Is More Important than Cash
Many people think that the most important asset during a difficult time is cash. In reality, leadership credibility is even more important. If stakeholders believe that the leadership has a solid plan and is working hard to “right the ship”, they will pull together as a team to help make the effort successful. Leeb Partners can help you to work through these difficult situations by first building more credibility with your stakeholders and then by operating in a pragmatic manner. Some of the tools that we can help you bring to bear on the cash problem are:
- Discussing the need for help with the board and/or a key donor. Leeb Partners will help them to determine if there could be a solid plan that could be constructed leading to the success of the organization. If so, they often will fund a portion or all of the work that may be required.
- Negotiating extended payment terms with certain or all creditors.
- Negotiating an increased credit line.
- Obtaining board approval to utilize unrestricted reserve funds because of the emergency nature of the situation and the need to immediately improve the health of the organization.
- Prioritizing programs and services and focusing more resources on fewer areas, thereby leaving cash available for the most critical needs.
- Improving systems and resolving disputes to collect receivables more quickly.
- Identifying and selling off excess or underutilized assets (e.g., land, buildings, equipment, etc.) and renegotiating or canceling leases.
- Renegotiating other major contracts.
- Reducing overhead expense and resolving human resource issues.
- Increasing prices for certain specific services or products where your organization has competitive advantages.
- Providing information to help obtain a grant for capacity-building.
- Operating on a commission basis.
- Outsourcing certain functions to others to reduce cost.
- Investigating cost reductions through insurance cost reductions, purchasing efficiencies, etc.
Leeb Partners will help your organization structure a solution that is tailored to the constraints of your unique situation. We will help you to understand the critical alternatives and the potential benefits that can result once “fighting fires” is not the normal routine each day for your organization.