How to make business profit 26 Apr 2020

Cash is king#3 during crisis - Liquidity recovery with low-cost fight/business returning

 

May 1,2020 Thailand airline will return to fly. This business are high investment and fixed cost also cash injection for working capital day-to-day. Now every flight has shortage both net cash flow and performance. I think.

 

In during crisis. What's your business strategy for the liquidity survival? no one knew performance and net cash flow will return? This return flight(another biz) must to focus on

1.Customer’s behavior changing. We must inject cash for safety/pain = Cash out flow

2.Marketing expenses for customers back = Cash out flow

3.Technology investment for service improvement = cash out flow

4.Operation expense on every flight = cash out flow

 

"Your business strategy and marketing campaign = Cash outflow"

 

How to boost-up that cash inflow under restrictions factors as

1.The seat is reduced(load factor) to almost 40% from social distancing 

2.New normal by work from home, Fear and IoT Meeting

 

"How about cash inflow coming?"

 

Board and CEO role with Financial risk (Liquidity).   I think those tools as.

1.War-room(top managemt team)/agile team for reporting every flight. How about move forward action plan?

2.Assessment of net cash flow position and summary by daily reporting. How to manage liquidity in next? 

3.Shall be drawing of stress test of BCP's liquidity and business move forward in during and after crisis action plan.

 

The end of this year, this business must evaluate figure for impairment of assets (under IAS) and/or business downsizing themselves plan. My idea.

 

Mr.Surachai.e CPA/CFO

#cfotalkbiz #นักบัญชีเล่าธุรกิจ

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