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 crisis does not create new systemic problems; it amplifies those that already existed in the company. We first establish the actual severity and causes of the crisis, then stabilize cash, sales and execution.
ASSESSMENT FIRST

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.

>2crisis indicatorsIf more than two assessment answers are “yes,” the company is already in crisis territory.
Cash flowliquidity controlCash-flow shortfalls, liabilities and payments become a daily management cycle.
Risksdecision mapFor each factor, we document the risk, response option, expected effect and owner.
Plan-versus-actual analysisweekly adjustmentCrisis-response decisions are evaluated against quantified metrics and adjusted based on actual results.
CRISIS INDICATORS

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.

CRISIS-RESPONSE MAP

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
TWO GROUPS OF CAUSES

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.

How we build the recovery plan →
1

Sales to new customers

Declining traffic, conversion and average order value require changes to the sales and marketing system.

2

Sales to existing customers

Declining repeat sales and LTV indicate a loss of customer value or execution quality.

3

Operating expenses

Rising product costs, logistics, rent, payroll and excess inventory erode margin.

4

Liquidity and financing

Loans, cash shortfalls and insufficient working capital require a separate stabilization plan.

INTERNAL RESERVES

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.

Assortment

Pricing

Updating prices, commercial terms and delivery costs.

Margin

Fixed costs

Optimization of rent, organizational functions and non-current assets.

Costs

Variable costs

Reducing expenses that do not contribute to financial performance.

Efficiency

Cash-flow management

We establish control over cash flows.

Liquidity

Inventory

Reducing excess inventory and releasing working capital.

Working capital

Incentives

Linking the employee incentive system to financial results.

Team

Financial model

Risk map, recovery scenarios and updates to the financial model.

Scenarios
Operating principle

We first calculate the actual cash and financial effect of each decision, then include it in the crisis-response plan.

DIFFERENT SCENARIOS

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.

Revenue declineWe stabilize the sales funnel, customer segments, product and commercial metrics.
Cash-flow shortfallsWe introduce a payment calendar, payment priorities and daily liquidity control.
Rising debtWe compile a register of liabilities, negotiation scenarios and a repayment schedule.
Margin declineWe review pricing, product costs, logistics, marketing and the product portfolio.
Cash tied up in inventoryWe reduce excess inventory and accelerate inventory turnover.
Systemic crisisWe simultaneously redesign finance, sales, costs, accountability and management routines.
MANAGEMENT CYCLE

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.

Outcome:The company sees cash shortages in advance and manages payment priorities.

Sales and funnel

We track traffic, conversion, average order value, repeat sales and LTV.

Outcome:Revenue decline is analyzed by driver, not explained in general terms.

Costs and margin

We monitor the effect of cost reductions, price changes and operational decisions.

Outcome:Savings are confirmed by financial results, not merely by the fact that a budget was cut.

Inventory and working capital

We manage purchasing, obsolete inventory, inventory turnover and the release of working capital.

Outcome:Inventory stops being an uncontrolled drain on liquidity.

Team and accountability

We assign owners to each measure and document timeframes, metrics and escalation rules for deviations.

Outcome:The team understands the priorities and follows one plan under stressful conditions.

Weekly plan-versus-actual review

We compare expected and actual impact, discontinue ineffective measures and reinforce those that work.

Outcome:The crisis-response strategy is adjusted before a deviation becomes irreversible.
HOW WE LEAD A BUSINESS OUT OF CRISIS

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.

1

Assessment

We analyze trends in revenue, profit, cash, debt, sales, costs and inventory; determine the severity of the crisis and identify the key drivers.

2

Liquidity stabilization

We introduce cash-flow control, a payment calendar, payment priorities and liability-management scenarios.

3

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.

4

Crisis-response action plan

We document decisions, financial optimization measures, owners, timeframes, metrics and expected impact.

5

Execution and adjustment

We mobilize the team, review results against defined metrics and adjust measures until stability is restored.

WHAT THE CLIENT RECEIVES

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.

NEXT STEP

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.
Discuss the situation

The focus is on restoring liquidity, financial performance, management control and predictability.