Andy Richardson

Background

About Andy Richardson

What’s the #1 cause of business distress for manufacturers? ANSWER: Inadequate cash flow. If your manufacturing business is feeling the pinch and experiencing symptoms like… - revenue declining or rapidly growing over multiple quarters - difficulties in paying suppliers / collecting cash - increasing debt What actions can you take? Based on my 40+ years’ experience, it’s often… - cost-cutting measures - restructuring - tightening credit control But the problem with this approach is it doesn't address the underlying issues. Which means even if the short term measures work, there is a chance of relapse. So what can you do instead? Here’s the exact approach I use with clients… First, we run a diagnostic assessment of your organisation to establish a baseline to work from. Then we create a 100 day project plan to get the business back on track. This is the framework I typically use: MONTH 1: We conduct a review of suppliers and customers, and create means to generate cash quickly. We also assess supply chain and production processes as well as analyse margins, costs, pricing, and terms. Next we review operations, and assess leadership and management processes. These actions will help us to refine the 100 day plan. MONTH 2: We continue to implement the agreed changes to optimise pricing and margins, reduce costs, improve cash flow controls, and enhance supply chain and production planning. MONTH 3: We implement price changes and reduce costs further to improve profit. This phase also involves implementing adjustments to overheads, finalising new customer and supplier terms, and reviewing the effectiveness of cash flow controls. At the end of the 100 days, not only will your company be in a more financially stable position, but your overall culture will be stronger. This is the exact process that enabled my manufacturing client to go from having regular cash flow issues (and being at risk of insolvency) to generating £3.2m of cash in 100 days by reducing working capital, increasing sales, and adding new revenue streams. Not to mention the £2.4m in profit we added in the year that followed. So if you’re a manufacturing business leader that wants to define a new path to sustainable growth and maximise shareholder value, send me a direct message or email andy@aspirecompanies.co.uk I’ll reply with a few questions and we can see if there’s a good fit to arrange an initial consultation.