When a business enters a crisis, it needs a structured recovery plan—not a blanket cost-cutting exercise
We assess the severity of the crisis, identify the drivers of declining revenue, margin erosion and liquidity pressure, build a financial model and implement a business stabilization plan.
A one-size-fits-all cost-cutting plan cannot resolve every crisis
A timely assessment of whether a crisis exists and how severe it is provides the basis for effective decisions. The required measures depend on the factors that caused performance to deteriorate.
Five signals that cannot be assessed in isolation
A crisis is reflected not in a single metric, but in a combination of declining sales and profitability, mounting obligations and liquidity pressure.
Negative revenue trend
Is your sales revenue declining?
Profitability is falling
Net profit as a percentage of revenue is declining, even if sales are still holding up.
Overdue payables are increasing
The volume of overdue accounts payable and pressure from liabilities are increasing.
Cash shortfalls are becoming more frequent
Cash shortfalls occur more often and last longer, and payment constraints begin to dictate how the company operates.
Loans cover current expenses
The company needs loans to pay salaries and other current expenses.
Reactive management
Decisions are made reactively, without a unified financial model, clear priorities or measurement of impact.
Eight areas we assess simultaneously
A business crisis usually reflects both management and operating-model failures. The recovery plan is built from an integrated analysis of sales, unit economics, cash flow, costs, inventory and team execution.
Crisis assessment
We review operating performance trends and determine the severity of the crisis.
- revenue and profit
- cash flow
- liabilities and risks
Sales to new customers
We analyze the decline in sales to new customers.
- traffic
- conversion
- average order value
Sales to existing customers
We assess the decline in repeat sales and customer value.
- traffic and conversion
- average order value
- LTV
Product and pricing
We review the product mix and the commercial decisions behind it.
- product mix
- pricing
- delivery
Cost of sales
We analyze marketing, product cost, logistics and inventory.
- customer acquisition cost
- margin
- inventory turnover
Financial management
We assess loans, working capital and cash-flow management.
- payment calendar
- cash shortfalls
- liability terms
Cost base
We assess increases in product costs, rent and personnel expenses.
- fixed costs
- variable costs
- non-current assets
Team and execution
We align employee incentives with financial performance and the recovery plan.
- owners
- metrics
- regular review
A crisis amplifies systemic errors in management and operations
Reactive management does not work when the company has not separated the causes of declining sales from the causes of rising costs, working-capital shortages and loss of management control.
Sales to new customers
Declining traffic, conversion and average order value require changes to the sales and marketing system.
Sales to existing customers
Declining repeat sales and LTV indicate a loss of customer value or execution quality.
Operating expenses
Rising product costs, logistics, rent, payroll and excess inventory erode margin.
Liquidity and financing
Loans, cash shortfalls and insufficient working capital require a separate stabilization plan.
Where we look for impact before raising new funds
Financial optimization starts with decisions that free up cash, restore margin and reduce the need for debt financing.
Product portfolio
Review of the product mix and related commercial decisions.
AssortmentPricing
Updating prices, commercial terms and delivery costs.
MarginFixed costs
Optimization of rent, organizational functions and non-current assets.
CostsVariable costs
Reducing expenses that do not contribute to financial performance.
EfficiencyCash-flow management
We establish control over cash flows.
LiquidityInventory
Reducing excess inventory and releasing working capital.
Working capitalIncentives
Linking the employee incentive system to financial results.
TeamFinancial model
Risk map, recovery scenarios and updates to the financial model.
ScenariosWe first calculate the actual cash and financial effect of each decision, then include it in the crisis-response plan.
The set of measures is determined by the assessment, not by a universal list of cuts.
There is no single crisis-response plan that works for every company
The priority of measures depends on the main constraint: sales, margin, cash, liabilities, inventory or management quality.
A crisis-response plan must operate through daily and weekly decisions
We regularly evaluate crisis-response measures against defined metrics and adjust the strategy based on actual results.
Cash management team
We monitor cash balances, payments, receipts and the cash-shortfall forecast every day.
Sales and funnel
We track traffic, conversion, average order value, repeat sales and LTV.
Costs and margin
We monitor the effect of cost reductions, price changes and operational decisions.
Inventory and working capital
We manage purchasing, obsolete inventory, inventory turnover and the release of working capital.
Team and accountability
We assign owners to each measure and document timeframes, metrics and escalation rules for deviations.
Weekly plan-versus-actual review
We compare expected and actual impact, discontinue ineffective measures and reinforce those that work.
Five steps from assessment to sustainable execution
We first confirm the severity and causes of the crisis, then stabilize liquidity, build the financial model and launch an action plan with regular review and course correction.
Assessment
We analyze trends in revenue, profit, cash, debt, sales, costs and inventory; determine the severity of the crisis and identify the key drivers.
Liquidity stabilization
We introduce cash-flow control, a payment calendar, payment priorities and liability-management scenarios.
Reserves and financial model
We calculate the effect of changes in product mix, pricing, costs and inventory; build a risk map and adjust the financial model.
Crisis-response action plan
We document decisions, financial optimization measures, owners, timeframes, metrics and expected impact.
Execution and adjustment
We mobilize the team, review results against defined metrics and adjust measures until stability is restored.
Not a list of cuts, but a structured recovery plan
Crisis assessment
A conclusion on the presence and severity of the crisis, trends in key metrics and the factors that caused performance to deteriorate.
Risk map and financial model
Recovery scenarios, cash-flow and performance forecasts, constraints, liabilities and financial review points.
Crisis-response action plan
Priority measures, financial optimization, owners, timeframes, metrics and expected impact.
Team and regular review
Team incentives for working under stressful conditions, plan-versus-actual reviews and decisions adjusted using actual data.
We will identify where the company is losing money and which measures can deliver measurable impact
We will start with actual metrics and the causes of the crisis—not a universal list of cuts. Based on the findings, we will define stabilization priorities and the appropriate format for further work.
- determine the severity of the crisis and the main loss drivers;
- review liquidity, liabilities and the financial model;
- identify internal sources of improvement in sales, the product mix, costs and inventory;
- build an action plan, assign accountability and establish regular execution tracking.
The focus is on restoring liquidity, financial performance, management control and predictability.












