Part Time Finance Director in difficult circumstances

Performing this role will maximise your chances of successfully implementing your plans. However even the best laid plans face unexpected challenges and can fail. An FDs job in these circumstances is to minimise the impact of the failures. Operationally the FDs role is to deliver more time to the management team to work on strategic areas and drive more profit and cashflow out of the operations to fund strategic growth.With Covid 19 significantly disrupting many businesses and
saddling them with debt levels that might be unsustainable, the skills to turn
around businesses are in high demand.

Many entrepreneurs who have built their businesses steadily
over a period of time and therefore events like Covid come a great shock and
rather than staying calm and considering the options and being decisive, there
is a great tendency to flap around making a lot of noise and causing panic in
the ranks.

The initial role of the finance director is not to spread
the predictions of impending doom, but to assess the current situation,
consider what resources the business does have available to it and develop a
plan with the entrepreneur that will maximise the chance of successfully
navigating a way out of the crisis.

Molkte the Elder, the famous Prussian general describes in his book on the Art of War that the best plans do not survive first engagement with the enemy. This is even more true in business – especially in turn around situations. Therefore, I work on the basis that whilst the initial plan is a great way to calm everyone down and focus on doing something rather than worrying but more importantly that calm period whilst we get started is the time for the management team to develop its skills fast to recognise the unfolding reality in front of us as we implement the plan and adapt our activities accordingly whilst maintaining the overall objectives. Unfortunately, some team members may only be capable of working in the “good times” which is why there are often key team changes during this crucial period. Confidence is often the key.

Bank managers have previously recommended our services to other businesses in their portfolio or to colleagues in their relationship team when these turn aound situations develop. More often than not, the bank is keen to lend you more money to help you turn around – however, they will be much more cautious. This often requires the presentation of a clear business case in a language that the bank understands. In the last 20 years, we have secured around 100 rounds of funding from banks in almost every sector. Most recently, we have secured 3 CBILS loans.