The Scenario
A Johannesburg-based events company with 20 staff generates R800K/month in revenue. A major client (40% of revenue) has just cancelled their contract with 30 days notice. The owner needs to know: when does the cash run out, and what can we do?
The Brief
Model the next 6 months of cash flow under the distressed scenario. Identify the month the business runs out of cash, then design a survival plan that extends the runway.
Deliverables
- A 6-month distressed cash flow showing the month-by-month burn and the "zero cash" month
- A survival plan with at least 5 specific actions (cost cuts, payment term renegotiation, revenue recovery)
- A revised cash flow showing the impact of your survival plan
- The break-even revenue level the business needs to reach and by when
Submission Guidance
Cutting staff is the obvious answer but has legal implications in SA (CCMA, section 189). Show that you understand the cost AND complexity of retrenchment.
Submit Your Work
Your submission is graded against the rubric on the right. If you pass, you get a public Badge URL you can share on LinkedIn. There is no draft save, so work offline first and paste your finished response here.