When a business enters distress, time becomes its most valuable currency.
In our experience at Forgepoint, the first 90 days define whether a business stabilises — or slides deeper into decline. The difference almost always comes down to leadership, cash control, and visibility.
1. Cash Is the Only KPI That Matters (at First)
In a turnaround, profit is secondary — liquidity is everything.
A CFO-led team immediately builds a 13-week cashflow to forecast every inflow, outflow, and payable risk. We strip away non-essentials, pause non-critical spend, and renegotiate payment terms to preserve runway.
That single, simple discipline turns panic into planning.
2. Financial Transparency Rebuilds Credibility
Most distressed businesses fail not because they’re unviable, but because no one — management, staff, or creditors — trusts the numbers anymore.
Our first move is to rebuild reliable reporting: daily cash reconciliations, weekly P&Ls, and real-time dashboards that reconnect the financial truth with the operational reality.
When people can see the numbers, confidence returns.
3. Control the Burn — Don’t Cut Blindly
Cost reduction only works when it’s aligned with what drives value.
Forgepoint CFOs use zero-based budgeting and margin analysis to identify what truly moves the needle — protecting the productive core while removing drag.
It’s not about cutting deep; it’s about cutting smart.
4. Stabilise the Team Before the Balance Sheet
Turnarounds are emotional. Fear drives bad decisions.
CFOs bring calm authority — clear plans, transparent communication, and immediate wins.
We make sure key staff stay engaged, and everyone knows what’s being fixed first.
5. Create Early Proof of Progress
Within 90 days, the goal is traction: positive cashflow movement, customer stability, or a reduced payables backlog.
Small, measurable improvements create belief — and belief keeps everyone moving forward.
At Forgepoint, every turnaround starts the same way — with clarity, discipline, and CFO-level control.
From there, profitability follows naturally.
📩 Learn more about our CFO-led turnaround model.