The reasons for the financial crisis in the enterprise can be a general market downturn, an incorrectly chosen development strategy, and inefficient management. Regardless of this, universal tools can be used to bring the company out of the crisis: cost reduction, sales promotion, cash flow optimization, work with debtors and restructuring of accounts payable.
Diagnostics of the financial crisis
The speed and methods of overcoming the crisis largely depend on what are the causes of its occurrence and how quickly it will be identified. There are four main stages in the development of the financial crisis:
- decrease in the efficiency of capital use, reduction in profitability and absolute values of profit volumes;
- the occurrence of unprofitable production;
- lack of own funds and reserve funds, a sharp decline in the company's solvency. Often this is accompanied by a significant reduction in production due to the fact that part of the working capital is directed to servicing the increased accounts payable;
- state of acute insolvency. The enterprise does not have the opportunity to finance production and make payments on previous obligations. There is a real threat of suspension or even complete cessation of production, and then bankruptcy.
Vyacheslav Gvozdev,
Deputy Financial Director of Nikpa (Moscow)
In our company, the main criterion for the approaching financial crisis is the dynamic growth of overdue accounts payable, as well as the frequent excess of limits on the shipment of goods to customers and their failure to comply with the established payment terms. Another indicator that is constantly monitored after the crisis situation in which our company found itself two and a half years ago is the balance of stocks and their dynamics. During the crisis, we were faced with the fact that with a significant amount of funds immobilized in warehouse stocks, the sale practically stopped, because the goods in the warehouse were either not the same or of unsatisfactory quality from the point of view of consumer demand.
Grigory Dorokhin,
Head of the Planning and Budget Department of OAO Stroydormash Plant (Yekaterinburg)
In most cases, a crisis is not a consequence effective management in the absence of a development strategy. The main reason why businesses are on the verge of financial collapse is the work for one client. A poorly diversified portfolio of clients leads to negative consequences. The enterprise ceases to be flexible, loses such management mechanisms as pricing and receivables management, as it is forced to adapt to its requirements in order to retain the client. Another common reason for the development of the crisis is the lack of effective management of the financial and economic block based on modern mechanisms, such as budgeting margin analysis, credit policy. In addition to economic reasons, it is necessary to note the existing legal risks that may adversely affect the financial condition of the enterprise.
Marina Osipova,
financial director of the company "Dionis Club" (Moscow)
With proper management, the main reason for the development of the crisis in the company is the general decline in the market. The steady stagnation of the company, lasting more than a year, is an obvious indicator of the crisis. Such phenomena are easy to distinguish from seasonal fluctuations, which rarely last more than two or three months.
The way out of the crisis is possible only when the causes of its occurrence are eliminated. To do this, it is necessary to conduct a thorough and comprehensive analysis of the external and internal environment, highlight those components that are really of priority for the enterprise (stocks, equipment, key personnel), collect information on each component, as well as assess the real situation of the enterprise. Comprehensive diagnostics of possible causes of the development of the crisis in the enterprise includes:
Due to their complexity, most of the listed procedures, with the exception of monitoring key indicators activities cannot be carried out monthly. It can be recommended to carry out diagnostics annually or in cases where the external and internal operating conditions of the enterprise change significantly.
Personal experience
Anna Nekhin a,
director of OOO "Laboratory anti-crisis research" (Moscow)
The causes of the crisis can be both a general market decline and an incorrectly chosen strategy for the development of an enterprise, but the most important and common cause in practice is a general crisis in the management of an enterprise, including:
- clash of interests of management and owners of the enterprise;
- insufficient qualification of management.
In addition, for Russian enterprises, another characteristic cause of the crisis is the inconsistency of the available means of production (production assets, technologies, personnel) with the tasks set by the enterprise. This problem, which arose after serious structural changes in the economy in the 90s, is not allowed until now.
I diagnose the beginning of a serious crisis in an enterprise if it does not make a profit for several quarters in a row. However, in modern companies this value, reflected in the financial statements, is very conditional, therefore it can be determined only on the basis of consolidated reporting all legal entities related to the enterprise. I believe that it is impossible to get out of the crisis with the help of the same people under whose leadership the company came to the crisis. It is necessary to create a working group (it can include both third-party specialists and employees of the company), which is endowed with special powers. This group should collect the necessary information and develop a plan of anti-crisis measures (financial recovery plan). It must be discussed in detail by the owners of the enterprise together with the management, the working group and specialists competent in this matter. Depending on the causes and depth of the crisis, the plan may include various measures, up to the liquidation or sale of the business.
Personal experience
Marina Osipova
I would single out the following steps aimed at correcting the crisis situation:
- diagnosis and recognition of a crisis situation;
- defining a crisis point. It may be outdated technological processes, uncontrolled growth of costs, incorrect positioning of goods on the market;
- development of methods of "treatment";
- formation of an enlarged plan for overcoming the crisis.
Despite the fact that for all enterprises the causes of the financial crisis are individual, there are several universal management tools that can overcome the crisis:
- sales promotion;
- optimization of cash flows;
- dealing with debtors and reforming commercial lending policy;
- restructuring of accounts payable.
Cost reduction
Obviously, in order to increase the profitability of sales and further increase the inflow of Money need to reduce costs. In a crisis, cost reduction is one of the most effective tools that an enterprise can use to stabilize its financial situation.
Personal experience
Marina Osipova
The main tools that I had to use in a company in unfavorable financial terms, - rationing of all cost items and strict control over the implementation of established standards. This approach can not be called revolutionary, but it brings tangible results and allows you to keep the company's costs at a given level.
In order to reduce the costs of the company in a crisis, the following is necessary: tightening the procedures for authorizing expenses, motivating staff to reduce costs and reduce costs not related to the core business of the company. Within the framework of the listed activities, the following procedures must be performed.
- Formation of the company's budget. Cost planning and transfer of authority for their management to department managers will significantly reduce the company's costs. If there was no budgeting at the time of the financial crisis, it can be recommended to confine ourselves to drawing up a master budget (forecast balance sheet, cash flow budget and budget of income and expenses), budgets of key production units, as well as to form budgets for receivables and payables and the movement of raw materials and materials . This will optimize cash flow and keep costs at a given level.
- Horizontal and vertical integration. Horizontal integration involves looking for opportunities to purchase jointly with another buyer. An increase in the volume of purchases will allow you to get the so-called volume discounts. Vertical integration implies closer work with suppliers of key items of raw materials and materials (timely fulfillment of contractual obligations, financial transparency, etc.).
- Analysis of the possibilities of transferring expensive processes to outsourcing. You should evaluate which components are profitable to produce on your own, and which are cheaper to purchase from other manufacturers. For example, most enterprises that have their own boiler houses transferred them to the ownership of city administrations, since maintenance and service were too expensive.
- Introduction of new forms of settlements with contractors (bills, barter).
- Tighter control of all types of costs. It has been observed that when a company, for example, begins to register outgoing long-distance calls of employees, the total number of calls decreases due to a decrease in conversations on personal matters.
- Optimization of technological processes. Optimization issues can be resolved when discussing the production technology and product quality by the financial director and the production director. At one of the enterprises, production waste was significantly reduced only due to the constant monitoring of the work of personnel and the tightening of production discipline. The problem was the inaccurate handling of raw materials by workers.
- Reducing labor costs. It is necessary to develop bonus schemes for the company's personnel and motivate them to reduce costs. As a basis, a scheme can be adopted in which part of the saved costs is paid to the employee. It is also necessary to reconsider organizational structure to eliminate unnecessary levels of management.
Personal experience
Vyacheslav Gvozdev
Our company is trying to avoid reducing such a cost item as personnel costs. In most cases, the savings from wage cuts are practically imperceptible, but such measures can provoke a personnel crisis for personnel, which will significantly complicate the state of the enterprise. It must be taken into account that in order to compensate for the outflow of personnel from the company in the short term, it will take time and intensification of the work of the remaining employees, and these factors are very limited in an enterprise in a crisis. In the long term, these factors can be successfully used.Sales promotion
One of the most common mistakes is that in times of crisis, many companies try to increase their cash flow by raising the price of their products without first researching the market. The activation of sales in a crisis situation should be expressed in the development of relations with existing customers and attracting new ones, offering new products to the market, concluding contracts for work with raw materials to be supplied by the customer, as well as reviewing the existing system of discounts and benefits for buyers.
Cash flow optimization
Optimization of cash flows is one of the important tasks of anti-crisis financial management.
The first step in this direction is to introduce a procedure for daily reconciliation of cash balances. This will eliminate possible abuses, give managers reliable information about the current balance of funds in the accounts and at the cash desk of the enterprise, which is necessary for making decisions on making current payments. Then you need to create a register of current payments and prioritize. Top managers should consider the priority of this or that payment during the monthly discussion with the participation of ordinary employees. After that, you can proceed to the construction of the most detailed cash flow budget for the next reporting period (month). This will optimize cash flows companies and anticipate cash gaps.
In addition, it is necessary to maintain a low balance on current accounts in various banks, that is, to reduce the amount of cash to a minimum. If one of the company's accounts is frozen, it will be able to continue working using accounts in other banks. This measure will protect the company from risks such as bank failure or filing of card files on accounts.
It is also necessary to consider the possibility of increasing the so-called non-operating income. To do this, together with the engineering service, the possibility of selling part of the unused equipment or its conservation is analyzed. The equipment conservation act is submitted to the tax inspectorate, thanks to which it will be possible not to pay property tax on mothballed objects. It is not uncommon for a business to generate additional revenue by renting out unused space or moving the office to a less expensive location.
Along with the above measures to optimize cash flows, it is necessary to revise the company's policy in the field of capital investments:
- suspend or close long-term investment projects that will not bring income in the near future;
- for projects that cannot be stopped, the schedule for the receipt of investments should be changed so as to exclude the occurrence of cash gaps in the company's budget.
Dealing with debtors and reforming commercial lending policy
In the context of the financial crisis, the company should not completely abandon the sale of products in installments, as this is likely to cause a sharp reduction in sales. In order to optimize work with debtors, we can recommend that you perform the following actions.
- Structuring debtors by payment terms. For example, the following groups of debtors with a maturity date can be distinguished: up to 15 days, from 15 to 20 days, etc. For each of the groups, you need to appoint a responsible person (usually a sales manager) who controls the timeliness and completeness of fulfillment of obligations by counterparties . It is advisable to introduce a bonus scheme for motivating managers tied to the maturity accounts receivable, for example, 1% of the amount of funds received on time; 0.5% upon receipt of funds with a delay of one or two days, etc.
Personal experience
Marina Osipova
Work with existing at the time of the crisis receivables should be built as follows. You need to start with an inventory of the company's debtors, that is, with clarification of the amount of receivables and the timing of their repayment for each counterparty. Also at the inventory stage, an assessment of the likelihood of bad debts is carried out. Then methods of influencing debtors are determined depending on the state of the debt (delay time, size, etc.).
- Consideration of options for the sale of receivables to the factor company.
- Development of formalized principles for assessing the creditworthiness of clients. It can be recommended to consider the buyer creditworthy as long as the funds received from him for previously shipped products cover the cost of goods sold. For newly attracted customers, it is justified to use full or partial prepayment as the main delivery condition.
- Formation of a scale of discounts for early repayment and forecasting the growth of cash flows. Before accepting new terms of settlements with counterparties, it is necessary to simulate the situation by constructing a cash flow budget and an income and expenses budget. If the best result is obtained, new scheme calculations are approved by the order of the enterprise.
Personal experience
Grigory Dorokhin
I can give an example from my own practice.
A certain company had two main activities: the production of packaging and trade in building materials. Due to incorrect pricing in the "packaging" direction, production was largely financed through trade in building materials. The situation was aggravated by the fact that the liability of the company's balance sheet was represented exclusively by short-term liabilities (accounts payable and short-term bank loans). The most serious problem was that the production worked mainly for one client. Naturally, when the management tried to raise prices for products, buyers simply refused to purchase them.
Under these conditions, we have taken the following actions: set limits on general production costs, increased control over the costs of services of auxiliary shops, cut investment in equipment and the production complex, and minimized almost all items of general business expenses.
It was also necessary to increase the turnover of profitable commodity items. There were not enough own funds for the development and activation of sales, and the company was denied bank loans. It was possible to find the necessary funds through the use of such a tool as factoring, which, although it reduced the profitability of individual operations, made it possible to significantly reduce financial cycle while increasing sales volume and overall profit.
Restructuring of accounts payable
Restructuring accounts payable involves obtaining various concessions from creditors, for example, reducing the amount of debt or reducing the interest rate on a loan in exchange for various assets owned by the company. There are several main ways to restructure accounts payable.
- Assignment of property rights to fixed assets. The company may agree with the creditor to repay part of the accounts payable in exchange for fixed assets. Before offering any assets as compensation, it is necessary to assess how important they are for the production activities of the enterprise and whether they are collateral for other obligations. This method is suitable for companies with a large number of fixed assets that are difficult to sell at an affordable price, or the costs of their storage and maintenance are quite high. It is advisable to offer this method of restructuring to those creditors who can use or sell the received assets.
- Assignment of company shares. One of the types of compensation is the offer of a block of shares, which is on the balance sheet of the enterprise. In this case, the shares of the new issue cannot be used to reduce accounts payable. The agreement is concluded between the creditor and the owners of the enterprise, who are ready to give up part of the enterprise's shares in exchange for improved credit conditions. Lenders may take this approach if their claims on the entity represent a significant portion of its total debt or if they plan to diversify their business by acquiring equity stakes in other companies.
- Carrying out mutual settlements. Debt offsets are a common method of debt restructuring. In the process of analyzing receivables and payables, it often turns out that the company has debt obligations to the company, to which it also has counterclaims. In such a situation, the entity may set off both amounts. Moreover, offsetting can be carried out unilaterally by notifying the other party (preferably in writing and with confirmation of delivery of the letter). The business may also attempt to buy back the creditor's debts from a third party at a significant discount and then offset the full amount.
- Rescheduling accounts payable. Very often, debts to creditors are not secured by anything. If such creditors demand repayment of a debt in judicial order, then they risk getting only a part or nothing at all, since their claims will be satisfied last. An entity may offer to "unsecured" creditors to convert the debt into secured obligations in exchange for a reduction in the amount of the debt, interest and/or an increase in the maturity of the debt. To restructure an unsecured loan, collateral can also be offered to the lender in the form of a third party guarantee or surety, under which the third party undertakes to repay the company's debt if it is unable to do so on its own.
- Repayment of accounts payable by providing bills of exchange. A promissory note as a means of debt restructuring is a new obligation that must be fulfilled in accordance with the newly established terms and often at lower interest rates. This frees the company from paying debt in this period, contributing to the improvement of the company's performance. Enterprises in financial distress may use promissory notes as a loan restructuring tool if there is a third party interested in acquiring the company's liabilities.
The use of bank bills is much more efficient. To do this, a loan agreement is concluded with a bank secured by the amount necessary for the purchase of bank bills. In the future, the company pays its creditor with bank bills. In this transaction, the enterprise effectively replaces its many "unsecured" creditors with one "secured" one - a bank that provides a loan to the enterprise at an interest rate lower than the rates on unrestructured debt. Lenders benefit because, in return for bad debts, they receive well-defined claims on the bank. Companies using this method of restructuring typically have many small creditors, a good relationship with a stable bank, and assets that can be used as collateral for a loan.
Personal experience
Vyacheslav Gvozdev
Most of the creditors of our company are Western suppliers of goods. In a situation where a company has overdue accounts payable, we use two approaches. First, an agreement is concluded with the supplier that the company will pay off the debt as new batches of goods are purchased. For example, a new purchase of goods is carried out. At the same time, they pay total cost of the purchased batch and part of the old overdue accounts payable. The second approach is that the accounts payable to the supplier are either restructured with the transfer of payments to the future, or repaid at the expense of a short-term bank loan issued to replenish working capital, taking into account the actual turnover of “hanging” stocks received from this supplier.
Marina Osipova
In my opinion, the most effective tool for restructuring accounts payable is the repayment of accounts payable as a result of the assignment of claims to one or more debtors. This method does not require the withdrawal of funds from the turnover and allows you to save on the costs of servicing accounts payable.
Anna Nekhina
I believe that the main mechanism for the restructuring of accounts payable is the conclusion of a settlement agreement approved by the court. In this case, the enterprise and persons interested in bringing the company out of the crisis are to some extent insured against unscrupulous creditors. After all, an enterprise in crisis is a very interesting object for specialists in mergers and acquisitions (corporate takeovers).
And already within the framework of a settlement agreement, it is possible to carry out restructuring measures: installment plan, exchange of debts for securities, debt forgiveness, etc.
Personnel management in a crisis
Separately, it is necessary to say about personnel management in the conditions of liquidation of the crisis. If the emergence of an external threat is monitored in a timely manner and there is time for systematic changes, then serious problems do not arise. However, in most crises, all organizational changes in terms of cost management, receivables and cash must be carried out in a short time, which causes an increase in the workload on employees. All this gives rise to resistance to ongoing reforms and their sabotage. In order to overcome this situation, it is necessary to carry out explanatory work among the staff and bring to them a plan for overcoming the crisis. This can be done both at general meetings and through department heads.
Personal experience
Anna Nekhina
FROM personnel problem during the crisis will have to face constantly. To ensure some stability of personnel, at least at the lower and middle levels, it is necessary to plan the cash flows of the enterprise in such a way that there are never any delays in the payment of wages. After all, it is the payment of wages that, it seems to me, is the main indicator of the solvency of an enterprise for its ordinary employees. In addition, the degree of confidentiality of everything related to the financial condition of the enterprise should be increased. Rumors are still unlikely to be avoided, but with a combination of a confidentiality regime and events aimed at increasing loyalty to the “native plant” (delivery of diplomas, congratulations, labor competitions), I think the mood of the team will be much more positive than if the situation is left to chance .
After developing a financial recovery plan, it is necessary to explain to the team what exactly it is, and, possibly, create some kind of reward system associated with its implementation.
Marina Osipova
Special attention when managing personnel, it is necessary to pay attention to informal leaders who are negatively disposed towards the ongoing anti-crisis measures. These employees need to be convinced of the necessity and justification of the actions taken or fired.
Competent work with personnel in this way will help to carry out the above measures and will contribute to the elimination of the crisis in the enterprise.
Practical experience of overcoming the financial crisis
Anton Khodarev, financial director of LLC TK Russian Coal (Moscow)
Description of the situation
The Russian Coal Company, the Fund for Assistance to the Development of Regions and the Federal Agency for Construction and Housing and Utilities of the Russian Federation founded the Interregional Communal Company (IRCC) - management company in the housing and communal services market. The first object for MRCC in July 2004 was the communal services of the city of Raichikhinsk, which at that time was under the jurisdiction of the municipal unitary enterprise "Housing and Communal Services of the City of Raichikhinsk" (Amur Region), which provided enterprises and the population with a full range of utilities. The municipal economy at that time was in a state of permanent financial crisis: for three and a half months wages were not paid, the enterprise had a large debt to budgetary and non-budgetary funds, as well as high accounts payable - a non-payment crisis developed. From the point of view of financial management, the concept of management accounting and cost accounting was completely absent, accounting was carried out manually. The top management of the enterprise undermined the credibility of both the personnel of the enterprise and the city administration. Sabotage began, the number of accidents increased sharply. The enterprise was on the verge of bankruptcy, and urgent anti-crisis measures were needed.
What was done
The complexity of the current situation lay in the fact that IRCC acted as an external anti-crisis manager. Its management did not have enough reliable information about the external and internal environment of the enterprise. However, the following activities were carried out.
- Cost management. The process of anti-crisis management was started by reducing existing costs. For this, a global inventory was carried out at the beginning and at the end of the reporting period (initially one month). This made it possible to eradicate trivial theft, which was rampant in the face of non-payment of wages. As a result, it was possible to approximately estimate the real consumption of raw materials and materials for the period and to compile the primary matrix of the unit cost of typical operations.
The next step towards reducing costs was the introduction of primary budgeting. After the budget was formed, a budget committee was convened, at which the planned expenditures were defended. A detailed analysis of cost items revealed that the overstatement for most cost items is about 30%. For example, a detailed analysis of the budgeted electricity costs, which amounted to about 10 million rubles, showed that in reality they do not exceed 8.5 million rubles. In order to force people to fulfill the budget, a system of indicators was created on its basis, responsibility for the achievement of which they were distributed among the employees of the enterprise and responsibility centers. This made it possible to eliminate the attitude to the budget as a formal document, the execution of which is optional. - Work with providers. It was decided to abandon some of the former suppliers of raw materials and materials, which, under tacit agreements with the previous management, supplied raw materials and materials at inflated prices. All purchases over 15 thousand rubles. as a result of anti-crisis measures, they were centralized and carried out through MRCC, due to which the cost of purchases has significantly decreased. In addition, the so-called horizontal integration of purchases was carried out with another local enterprise, Amursky Coal, which purchases large quantities of fuel for coal mining operations - an agreement was signed on the joint purchase of fuel. This led to a significant increase in the volume of orders for fuel and allowed to reduce its cost.
- Optimizing the use of assets. Based on the results of the analysis of the use of fixed assets, an opportunity was found to mothball one of the thermal stations, redistributing the load among the remaining ones. This resulted in property tax savings and reduced maintenance costs. The woodworking and machine shop processes were also outsourced. The vacated areas were leased for warehouses.
- Cash management. A list of the highest priority payments was developed, which, in descending order of importance, includes the following items:
- electricity;
- wage;
- payments to budgetary and non-budgetary funds;
- fuels and lubricants;
- materials;
- other costs.
In addition, a successful transition to an automated method of maintaining accounting owing to which the expenditure of staff working time for the implementation of standard accounting operations has been significantly reduced and the foundations of primary management accounting have been laid. In the future, this made it possible to avoid errors in indicators that are fundamentally important for the enterprise, such as the cost of services.
- Debt restructuring. As a result of negotiations with the tax inspectorate, the VAT debt was restructured. This was achieved by submitting to the tax office financial plans for a year and for five years: on the basis of these plans, it was decided to pay the VAT debt within three years. All wage obligations were paid off within four months at the expense of the company's profits. Other accounts payable to suppliers and contractors were liquidated in exchange for the provision of utility bills.
- Work with personnel. During the reform period, a large number of meetings with the participation of all personnel, the main idea of which was that all the difficulties of the enterprise are temporary and will be overcome in the near future. Also, the successful results of the reforms already obtained were actively discussed and examples of the effective work of the departments were given. This helped to raise team spirit and minimize resistance to change and sabotage.
To work with the personnel, local specialists were involved, who conducted classes on optimizing and automating business processes, which made it possible to significantly reduce the costs of carrying out activities.
Results of anti-crisis management
Thanks to balanced management decisions, in half a year it was possible to turn a bankrupt enterprise into a stable company: accounts payable were reduced by 80%, debt on wages increased the profitability of the company.
1 For more information about this tool, see the article “SWOT analysis in the service of the CFO” (“CFO”, 2005, No. 2, p. 12). - Note. editions.
2 For cost management methods, see the article “How to develop a cost management system” (“Financial Director”, 2003, No. 11, p. 12). - Note. editions.
3 More about ways to build an optimal structure product range see the article "How to optimize the assortment"
4 For more information on the management of receivables, see the article “Recommendations for the management of receivables” (“Financial Director”, 2004, No. 1, p. 31). - Note. editions.
The most common cause in practice is the general crisis of the enterprise management, namely the clash of interests of the management and the owners of the enterprise, insufficient qualifications of the management. Up to 80% of enterprises are not able to overcome such development crises, do not find a way out of their crisis and leave the market. This is usually a crisis of the organization of 6-8 years of life. All key aspects of enterprise management are on the agenda:
- the main philosophy of the company: goals, mission, values, etc.;
- managerial and organizational structures;
- managerial block of enterprise management parameters.
In most cases, the crisis is a consequence of inefficient management under lack of a development strategy. In particular, working for one client can cause an organization's financial crisis. The enterprise ceases to be flexible, loses such management mechanisms as pricing and receivables management, since it is forced to adapt to its requirements in order to retain the client.
It is impossible to get out of the crisis with the help of the same people under whose leadership the enterprise came to the crisis. It is necessary to create a working group, which is endowed with special powers. This group must collect the necessary information and develop ways to exit the enterprise from the crisis, a plan anti-crisis measures(financial recovery plan). Depending on the causes and depth of the crisis, the plan may include various measures, up to the liquidation or sale of the business.
For all organizations, the causes of the financial crisis are individual. However, there are several management tools that are universal for overcoming the crisis of an enterprise. Let's briefly look at the main ones.
Cost reduction .
In unfavorable financial conditions, this is the rationing of all cost items and strict control over the implementation of established standards ( budgeting). This approach allows you to reduce the company's costs to a predetermined level.
Sales promotion.
Sales promotion in times of crisis should be expressed in the development of relations with existing customers and attracting new ones, offering new products to the market, concluding contracts for work with raw materials to be supplied, as well as revising the existing system of discounts and benefits for buyers.
Cash flow optimization.
One way out is daily cash balance reconciliation, which will give managers reliable information about the current balance of funds in the accounts and in the cash desk of the enterprise, necessary for making decisions on making current payments. It is necessary to prioritize current payments. Further cash flow budgeting for the future period.
Dealing with debtors and reforming commercial lending policy.
In the context of the financial crisis, the organization should not completely abandon the sale of products in installments, but it is necessary to optimize work with debtors .
Restructuring of accounts payable.
An agreement is concluded with the supplier that the company will pay off the debt as new batches of goods are purchased. This is one of the ways out of the liquidity crisis. The second way - accounts payable is repaid at the expense of a short-term bank loan issued for replenishment working capital taking into account real turnover "hanging" stocks received from this supplier.
All organizational changes in terms of cost reduction, cash management cause an increase in the workload on employees, which can lead to workers resistance. Therefore, it is necessary to carry out explanatory work among the staff, to bring it up to date. Delays in the payment of wages can also lead to dissatisfaction with the performers, since timely remuneration for work is an indicator of the financial well-being of the enterprise. Information about the financial crisis of the organization is strictly confidential in such a situation. Alternatively, you can apply method of non-material motivation, in this case the mood of the team will be more positive.
Taking weighted management decisions will help the management of the company with the support of the team of employees to successfully lead the company out of the crisis.
Introduction
Conclusion
Introduction
Anti-crisis management is management that in a certain way foresees the danger of a crisis, provides for an analysis of its symptoms, measures to reduce the negative consequences of the crisis and the use of its factors for subsequent development.
Elimination of bankrupt business structures from the market is an indispensable condition for the effective functioning of the market mechanism. However, preventing bankruptcy and ensuring the continued prosperity of these structures is a much more complex and important task. The system of measures called anti-crisis management is subordinated to the solution of this problem. Under such management is understood either management in a crisis, or management aimed at bringing the organization out of the crisis state in which it is located. The main phases of the crisis process can be presented in the following sequence:
strategic crisis due to low quality strategic management 2 - 3 or more years ago;
tactical crisis due to the poor quality of tactical marketing and production management;
crisis of insufficient provision with resources, loans, etc.;
insolvency, its unprofitability;
restructuring;
bankruptcy and liquidation.
The consequences of the negative impact of certain factors can be foreseen, which means that appropriate measures can be taken in a timely manner to eliminate or mitigate them, if you constantly monitor signs of a possible deterioration in the financial condition of the enterprise.
The paper considers the topic: "Measures to bring the enterprise out of the crisis."
The work consists of an introduction, the main part and a list of references.
1. Anti-crisis management: concept and essence
The term crisis management can be used in two senses - in a broad and narrow sense. In a broad sense, anti-crisis management is the systemic management of a particular economic object at a particular level of the economy, from the point of view of counteracting the crisis. In a narrow sense, anti-crisis management is a system of organizational and managerial measures in relation to an individual enterprise that has fallen into a state of crisis, which is usually expressed in insolvency, which, in the event of its protracted irresistible nature, is neutralized through bankruptcy proceedings. In this case, the company goes through the procedure of liquidation, sale of its property and settlement with creditors (bankruptcy procedures).
According to the approaches that have developed in Russia, crisis management is a function, or rather, an obligatory component of bankruptcy. A dual situation arises when, on the one hand, it is a tempting idea to eliminate bankrupt companies from the market. business structures as the main condition for the effective functioning of the market, and on the other hand, the prevention of bankruptcy to ensure the continued existence of the enterprise, which is a much more complex and important task. This is precisely the problem that crisis management should solve.
Anti-crisis management is a set of consistently implemented actions to prevent, prevent, and overcome a crisis.
The process of implementing anti-crisis procedures in relation to the activities of debtor enterprises is called the anti-crisis process, which is built on the following main stages:
Implementation of continuous monitoring of the financial condition of the enterprise in order to detect early symptoms of a financial crisis.
Development of a system of preventive measures to prevent a crisis in diagnosing the pre-crisis financial condition of an enterprise. Anti-crisis management of an enterprise at this stage, characterized as "management by weak signals", is predominantly preventive.
Identification of the parameters of the crisis when diagnosing its onset based on the results of monitoring indicators - "indicators of crisis development".
The study of the factors that caused the emergence of the crisis of the enterprise and generate the threat of its further deepening.
Assessment of the potential financial capabilities of the enterprise to overcome the crisis. Such an assessment largely determines the direction of anti-crisis measures and the intensity of the use of stabilization mechanisms.
The choice of directions for the mechanisms of financial stabilization of the enterprise, adequate to the scale of its crisis. The choice of such mechanisms should stabilize the financial condition of the enterprise through appropriate transformations of the most important parameters of its financial structure - capital structure, asset structure, cash flow structure, structure of sources of formation financial resources, investment portfolio structure, etc.
Development and implementation of a comprehensive program to bring an enterprise out of a crisis, which is usually developed in the form of two alternative documents - a comprehensive action plan to bring an enterprise out of a crisis or an investment project for the financial rehabilitation of an enterprise.
Control over the implementation of the program to bring the enterprise out of the crisis. The results of monitoring the implementation of the program require periodic discussion in order to make the necessary adjustments aimed at improving the effectiveness of anti-crisis measures.
Development and implementation of measures to eliminate the negative consequences of the crisis by the enterprise.
The system of these measures at each enterprise is of an individualized nature and is aimed at the subsequent stabilization of the qualitative structural transformations of its activities.
To prevent a crisis, timely detection of signs of an impending crisis is of great importance. Therefore, before proceedingto bring the enterprise out of the crisis, it is necessary to determine the reasons that caused the destabilization economic activity. To do this, carry outanalysis of financial and economic activities, based on the findings of which the factor or factors that caused the crisis situation is determined, and a comprehensive program is developed, which should include measures to bring the enterprise out of the crisis, the resources necessary for their implementation, the start and completion dates of work, the list of performers expected result and other information.
2. Measures to bring the enterprise out of the crisis
Prevention of the crisis of the enterprise (organization), effective overcoming and liquidation of its negative consequences is provided in the process of "anti-crisis management" of the enterprise. The anti-crisis process is implemented using a system of anti-crisis management methods and anti-crisis procedures in relation to the activities of debtor enterprises. Measures to bring the enterprise out of the crisis are divided into: strategic (2 or more years), tactical (annual) and operational (Fig. 1).
Figure 1 - Measures to bring the enterprise out of the crisis
To achieve the goals of improving the enterprise, it is necessary to develop and implement a set of organizational and financial measures (Fig. 2).
Figure 2 - Organizational and financial measures for the rehabilitation of the enterprise
In the current Law of the Russian Federation "On the insolvency (bankruptcy) of enterprises" the entire set of procedures applied to debtor enterprises (anti-crisis management) is divided into two main groups:
) bankruptcy prevention procedures (sanation);
) liquidation procedures.
The mechanism for implementing the bankruptcy procedures of an enterprise is shown in Figure 3.
Figure 3 - The mechanism for implementing the bankruptcy procedures of an enterprise
To liquidation proceduresinclude: forced liquidation of the debtor enterprise by decision of the arbitration court; voluntary liquidation of an insolvent enterprise under the control of creditors. Unlike preventive liquidation procedures lead to the closure of businesses. Liquidation procedures reflect the content of bankruptcy in the narrow sense of the word, understood only as the liquidation of insolvent enterprises.
To prevention proceduresbankruptcy include: pre-trial rehabilitation; observation; administration, external management. the main objective these procedures - to ensure the exit of the enterprise from the crisis and its solvency. Thus, the main difference between all bankruptcy prevention procedures is that their application does not entail the termination of the activities of enterprises-debtors. The main task here is to ensure the withdrawal of the enterprise from an insolvent state and its normal functioning.
The way out of the crisis and its repeated prevention is carried out on the basis of a carefully developed strategies. An enterprise seeking to get out of the crisis faces two consecutive tasks:
eliminate the consequences of the crisis - restore solvency and stabilize financial position enterprises (for this, a stabilization program is being developed and implemented);
eliminate the causes of the crisis - develop a development strategy and restructure the enterprise on its basis in order to prevent the recurrence of crisis phenomena in the future.
The stabilization program should include a set of measures aimed at restoring the solvency of the enterprise. It is here that the fundamental differences between anti-crisis management and conventional management begin to appear. These differences lie in the change of decision-making criteria. Within the framework of "normal" management, these criteria can be reduced to the achievement of strategic development goals in the long term and profit maximization in the short term. When an enterprise enters a crisis state, the long-term aspect loses its relevance, and in the short-term aspect, the criterion becomes maximization or saving money. At the same time, the maximization of funds can and should be carried out by measures that are unusual for ordinary management. Anti-crisis management allows for any losses (including future losses), at the cost of which it is possible to restore the solvency of the enterprise today.
Each insolvent enterprise has its own reasons for falling into a crisis, but in any case, the onset of a crisis means an excess of spending money over their receipt in the absence of coverage reserves. And, therefore, the essence of the stabilization program to bring the enterprise out of the crisis lies in the maneuver of funds to fill the gap between their spending and receipt. The maneuver is carried out both by means already received and materialized in the assets of the enterprise, and by those that can be obtained if the enterprise survives the crisis. Filling the "crisis pit" can be carried out by increasing the flow of funds (maximization), and reducing the current need for working capital (savings).
So, the degree of insolvency of the enterprise is determined on the basis of indicators for assessing the financial and economic condition. Groups of indicators - indicators of the financial and economic condition - form the criteria for applying financial recovery methods to the enterprise. Criteria for choosing methodsfinancial recovery are the following groups of indicators:
group - indicators characterizing the external signs of insolvency and arising from bankruptcy legislation:
indicators for assessing the structure of the balance sheet - the current liquidity ratio and the security ratio own funds;
the severity of overdue liabilities.
A debtor enterprise that has external signs of insolvency is subject to general methods of financial recovery and operational measures to restore solvency.
group - indicators characterizing the effectiveness of enterprise management: product profitability; return on assets; return on equity; presence of losses.
For an insolvent enterprise, positive values of profitability indicators and the absence of losses are considered satisfactory. To the enterprise-debtor, which has unsatisfactory values of indicators of the second group, local measures are applied to improve the financial condition.
group - indicators characterizing the production and market potential:
indicators of the state of production and sales of products;
indicators of the state and use of production resources: number of personnel, labor productivity, depreciation rate of fixed assets, capital productivity, structure current assets, turnover of current assets.
As a result of diagnosing the financial and economic state, the possibility of maintaining and using the production and market potential of the enterprise is determined; a decision is made to preserve the debtor's enterprise or to apply liquidation procedures. Unsatisfactory values of indicators of production and market potential indicate a deep financial and production crisis and require, if the enterprise is saved, the consistent application of the entire range of financial recovery methods.
Method Selection Algorithmrecovery based on the above criteria includes the following steps:
stage. elimination external factors bankruptcy. The purpose of applying the methods of the first stage is to bring the current liquidity ratio and equity working capital up to the standard level.
The use of operational methods of financial recovery is also important for profitable, sustainable enterprises that have outward signs of bankruptcy. Operational methods of restoring solvency:
improvement of the payment calendar;
regulation of the level of work in progress;
transfer of low-turnover assets to high-turnover ones;
converting short-term debt into long-term debt;
carrying out other operational activities.
stage. Carrying out local events to improve the financial condition. The purpose of applying these methods of financial recovery is to ensure a stable financial position of the enterprise in the medium term, which is manifested in a stable receipt of sales proceeds, a sufficient level of asset liquidity, and an increase in product profitability up to 3-5%.
At the second stage, the following methods are used:
establishing ways to suspend penalties for overdue accounts payable;
ensuring the sufficiency of financial resources to cover newly emerging current liabilities;
gradual repayment of old debts.
When implementing the methods of the second stage, the possibility of attracting additional internal sources financing. These sources include: the sale of unnecessary and unused high-turnover assets, the reduction of costs to the minimum acceptable level, the implementation of energy and resource-saving measures.
stage. Creation of a stable financial base. The application of methods of financial recovery of the third stage requires the attraction of additional investments. The purpose of long-term methods of financial recovery is to ensure the sustainable financial position of the enterprise in the long term - the creation of an optimal balance sheet structure and financial results, stability financial system enterprises to adverse external influences. Long-term methods of financial recovery are:
active marketing in order to find a promising market niche;
search for strategic investments;
change of assets under new products.
The effectiveness of the application of rehabilitation measures is determined by financial forecasting, which makes it possible to compare various options for anti-crisis management, prevent Negative consequences implementation of bankruptcy proceedings.
crisis management recovery procedure
Consider stabilization program activitiesproviding a solution to the enterprise's way out of the crisis.
The increase in cash is based on the transfer of the company's assets into cash. This requires the manager to take the following drastic and often shocking steps for the average business leader, which involve significant losses:
sale of short-term financial investments(as a rule, it has already been implemented at crisis enterprises);
sale of receivables - a feature of this measure is that it involves possible large losses;
sale of stocks finished products- involves the sale of products at a loss;
sale of surplus production stocks - sale of surplus stocks of raw materials of one type for the purchase of missing raw materials of another type, also necessary in the production of this product;
the sale of investments (deinvestment) can act as a stop to ongoing investment projects with the sale of construction in progress and uninstalled equipment, or as the liquidation of participation in other enterprises (sale of shares);
sale of unprofitable industries and non-production facilities - in order to minimize the risk from such a step, it is necessary to rank the industries according to the degree of dependence on them of the enterprise's technological cycle. Ranking due to tight deadlines is carried out mainly expert method, subject to the following rules:
a) sale of non-production facilities and auxiliary industries using a universal technological equipment(their functions are transferred to external contractors);
b) liquidation of auxiliary productions with unique equipment;
c) getting rid of unprofitable objects of the main production, located at the very beginning of the technological cycle;
d) rejection of unprofitable productions that are at the final stage of the technological cycle (this measure is more suitable for enterprises with not one, but several technological chains, as well as for enterprises whose semi-finished products have independent commercial value).
Reducing the current economic need (THP) - the fastest and most radical reduction in inefficient costs in the following ways:
stopping unprofitable production is the first step that needs to be taken. If unprofitable production is impractical or impossible to sell, then it must be stopped in order to immediately eliminate further losses. The exception is objects, the stop of which will lead to the stop of the entire enterprise. The criteria for ranking industries here are the same as for their liquidation;
removal of costly objects from the enterprise is another way to remove unproductive costs for objects that have not yet been sold. It is carried out in the form of the establishment of subsidiaries. Any further financing of the withdrawn objects is excluded, which stimulates the entrepreneurial initiative of the personnel of the latter.
Reducing the TFP through some form of debt restructuring, which depends on the goodwill of the company's creditors. It can be implemented in the following ways: redemption of debt obligations at a discount - the crisis state of the debtor enterprise devalues its debts, and therefore it becomes possible to redeem them at a significant discount. In this case, the following conditions must be taken into account:
a) only those debts are redeemed that directly determine the TFP, and not those whose due date for payment or collection is relatively distant in time;
b) the amount that can be spent on debt redemption depends on the level of THP, i.e. it is impossible to spend funds on the redemption of debts to the detriment of economic activity;
c) the allowable price of debt redemption is determined by the company's own discount, i.e. redemption of debts should be considered as an investment project;
converting debt into authorized capital- it can be carried out both by expanding the statutory fund, and through the assignment by the owners of the enterprise of a part of their share (block of shares);
forward contracts for the supply of the company's products at a fixed price - if the creditor is interested in this product, he can be offered to set off the company's debt to him as an advance on long-term supplies of the latter.
Thus, the process of bringing an enterprise out of the crisis is a set of measures aimed at gradually improving the quality of the financial condition and transferring the enterprise from the category of crisis to the category of wealthy.
In the process of bringing an enterprise out of a crisis, it is necessary to eliminate the economic prerequisites for falling into a crisis in the future, so the program for bringing an enterprise out of a crisis should be based on the principles of a reasonable combination of risk and reliability, liquidity and profitability, and others. On how correctly the strategy and tactics of measures to bring the enterprise out of the crisis will be chosen, its prospects and potential in the future depend.
Conclusion
In conclusion, we briefly note the following. Crisis management - this is the management of an enterprise (organization), which aims to overcome or prevent a crisis state, manifested in insolvency, bankruptcy, unprofitability.
The crisis of an enterprise is caused by a discrepancy between its financial and economic parameters and the parameters environment, which in turn is due to the wrong strategy, inadequate business organization and, as a result, poor adaptation to market requirements. An enterprise seeking to get out of the crisis faces two consecutive tasks: to eliminate the consequences of the crisis - to restore solvency and stabilize the financial position of the enterprise; eliminate the causes of the crisis - develop a development strategy and restructure the enterprise on its basis in order to prevent the recurrence of crisis phenomena in the future.
Taking into account the analysis of the production and economic activities of a bankrupt enterprise, a set of measures is being developed to bring it out of the crisis. This process can be characterized as follows:
analysis of the quality of the financial condition of the enterprise - the stage of identifying the causes of the crisis;
financial stabilization of an insolvent enterprise - the stage of tightening the financial policy of an enterprise in order to find a way out of the current situation;
analysis of financial recovery opportunities - the stage of searching for alternatives, their feasibility study, selection the best way bringing the enterprise out of the crisis;
development of a program to bring the enterprise out of the crisis - the stage of implementation of measures to prepare the enterprise for financial recovery;
the withdrawal of the enterprise from a crisis state is the stage of improving the quality of the financial condition and bringing the enterprise to solvency.
Anti-crisis management programs should consist of three stages: elimination of insolvency; restoration of financial stability; ensuring financial balance in the long run. As part of the first stage, there should be an elimination of the shortage of funds for settlements on urgent obligations by eliminating the "extra" assets of the enterprise. Moreover, such liquidation should be carried out regardless of the possible losses of both the funds already received and materialized in the assets of the enterprise, and those that can be received if the enterprise survives the crisis. At the next stage, the most rapid and radical reduction of inefficient costs should occur. Having achieved a temporary restoration of the financial stability of the enterprise, in order to consolidate the achieved effect for a longer period, measures should be taken to increase the cash flow from the main activity of the enterprise.
Bibliography
1.Federal Law "On Insolvency (Bankruptcy)" dated October 26, 2002 No. 127-FZ (as amended on July 12, 2011).
2.Anti-crisis management: textbook / Edited by E.M. Korotkov. - M.: Infra-M, 2004. - 432 p.
.Babushkina E.A. Crisis management. Lecture notes / E.A. Babushkina, O.Yu. Biryukova, L.S. Vereshchagin. - M.: Eksmo, 2008. - 160 p.
.Barinov V.A. Crisis management: Tutorial/ V.A. Barinov. - M.: ID FBK-PRESS, 2005. - 488 p.
.Blank I.A. Anti-crisis financial management of the enterprise / I.A. Form. - M.: Omega-L, 2008. - 512 p.
.Pilipchuk V.V. Anti-crisis management / V.V. Pilipchuk. - Vladivostok: FEGU, 2003. - 123 p.
.Fatkhutdinov R.A. Innovation management. Textbook / R.A. Fatkhutdinov. - St. Petersburg: Peter, 2003. - 400 p.
Tutoring
Need help learning a topic?
Our experts will advise or provide tutoring services on topics of interest to you.
Submit an application indicating the topic right now to find out about the possibility of obtaining a consultation.
Instruction
Form the budget of the enterprise. Plan costs and delegate the authority to regulate them to department managers. All this will be a real way to reduce costs. If this procedure was not carried out before the crisis, then limit yourself to drawing up a forecast balance, budget of expenses and income.
Also take care of the management of production units and budget accounts payable and receivable. All this together will help optimize cash flows and keep costs down.
Look for buying opportunities with other buyers. The more joint purchases you make, the more volume discounts you will receive. Work more closely with suppliers of key material and raw materials. Always comply with the terms of the contract on time and ensure financial transparency.
Consider outsourcing your most expensive and time-consuming processes. Carefully analyze what is profitable for you to produce yourself, and what is better to buy from the manufacturer. For example, if you have boiler houses on yours, you can transfer them to the ownership of the city, thereby removing their maintenance from an expense item.
Tighten control of all types of costs. Keep track of even the smallest details in your enterprise. For example, some employees often resolve personal issues by making calls abroad on a landline. And that's just one of those costs. Reduce the amount of useless spending during the working day.
Optimize technological processes. Discuss all the controversial issues of product quality and manufacturing technology. Control the work of staff at all stages. Try not to allow a careless attitude to raw materials and materials. Then the amount of waste will be much less, which will lead to a reduction in costs.
Discuss all problems with the board of directors and the workers' union.
Sources:
- How to get a company out of a financial crisis
A crisis can come for many reasons. For example, due to general market instability, inefficient management or an incorrectly chosen development strategy. Of course, it is much easier to prevent a problem than to deal with its consequences. But it happens that any actions of the management team cannot prevent a crisis. And then you have to work in extremely unstable conditions.
Instruction
Reduce costs across the board. Perform a personnel cleanup. Fire employees who don't do their jobs well. Their duties can be distributed among existing employees. Or hire people who will perform the same functions better. Each person must do their job perfectly.
Fire employees whose services are not essential to the firm. Do not spend money on activities that are secondary to the organization. It is not worth maintaining large staffs if you can get by with fewer staff. In many organizations, the staff of accountants is unnecessarily bloated. If you have a similar situation, keep only a small number of conscientious employees.
Reduce rental costs if the space is not your property. You can refuse some premises or talk with the owner about lowering the fee. Try to minimize the cost of utility bills and stationery.
Monitor competitors performance. Perhaps they changed prices or expanded their area of activity. Analyze how much you need such changes. Introduce rational changes in the work of the company.
Expand areas of activity. Think about what additional goods or services you can offer to the consumer. Analyze the level of costs and planned income. If the changes pay off soon, introduce them.
The air around you literally rings with tension when you realize that something urgently needs to be done. Usually this state does not arise immediately, it is generated for a long time from small pieces, pouring out with power, and then falls on you, generating a shock wave of anxiety and fear. Everything suddenly slips through your fingers. And when you decide to truly evaluate your financial condition, the results shake you to the core.
The only way to swim out of this murky water is to get your panic under control.
Step 1: Stop Wasting Time
When faced with a stressful situation, many use the tactic "Do whatever but don't think about the bad." They waste time and energy on things that have nothing to do with solving the problem. So they try to distract themselves a little, but how scary then to look into the eyes of reality again!
Stop! Focus only on the problem! If you feel too overwhelmed to think about her, take a full rest to attack her the next day with fresh energy.
So, overcoming fear, you looked into the bottomless eyes of your financial crisis. Now we start to act.
Step 2. Stop easy spending
The hardest thing during a financial crisis is the feeling of hopelessness that haunts you. Money is constantly running out, but you cannot understand what exactly you spent it on. Accounts are empty, and it's scary.
At this point, you need to stop the most obvious leaks, and the easiest way to do this is to cut off your path to impulsive spending:
- leave credit cards and most of your cash at home;
- turn off online banking.
This, of course, is reminiscent of trying to plug a leaky bucket with a rag. It cannot be called a full-fledged repair, because the water will still overcome this barrier, but for a while you will stop the flow and get a head start in order to come up with the best solution.
Step 3. Look for money at home
The stress of the financial crisis that has overtaken you is constantly exacerbated by the pressing need for regular expenses: you need to feed your family, or, well, or yourself, dress, pay the rent ...
In this situation, refer to the resources that you already have. Surely it will turn out that for at least a week you can eat the food that is on the shelves and in the refrigerator. You just get used to buying something all the time. And after sorting out the closets and pantries, you will find that there are still quite a few decent clothes and shoes.
By the way, during the excavations you will probably find something that can be sold. You have money at home, look for it and take your time to open your wallet.
Step 4: Develop a plan of salvation
You have stopped the apparent cash leaks, what's next? Now you need a plan to get your finances in order. The reasons for your plight may be different: a sudden dismissal, health problems that required large financial investments, an unsustainable loan, and the like.
You need to study as much material as possible on how to proceed in your particular situation. Believe me, you are not the first to encounter it, and therefore you will surely find many tips and solutions.
Based on them, build your personal plan way out of the crisis. When you have it in your hands, you will feel how fear and stress gradually release you.
Step 5: Do Something Every Day
No matter how cool your plan is, it is useless if you do nothing. We need to put it into practice. Every active step you take will elevate your mood and reduce tension.
Sold an unnecessary thing - immediately pay off part of the loan debt. If you are unexpectedly fired, join the labor exchange to receive temporary benefits.
Constantly look at your plan and think about what you can do with it right now. And when done, look again. And so every day.
Step 6. Talk about it
The best thoughts often come to us in those moments when we begin to talk about our problems. If you are an extrovert, then it will be useful for you to talk with a person whom you completely trust: explain the situation to him in detail, and you yourself will be able to look at it in a new way.
If you are an introvert, then it will help you: tell everything to paper, do not think that it will be chaotic. Write first, then try to organize those notes.
When we talk or write about a problem, our subconscious thinks about it and pulls out unexpected solutions from the depths.
Step 7. Don't hide anything from your partner
Financial problems lead the list of factors that break marriages. Money matters in themselves are often the causes of quarrels, and if there are already other cracks in your union, then the financial crisis will accelerate the gap.
The best solution is honesty. Don't hide anything from your partner. Lay all cards on the table. Admit your mistakes and omissions.
Impossible without mutual honesty. And if you expect it from a partner, then start with yourself.
Step 8: Eat Healthy
To combat any stress, no matter what it is, a healthy diet is essential. Give up all processed foods and give preference only to healthy and natural products. We expect a wave of objections from readers who will say that healthy food is now more of a luxury. Still, try to find a balance: use all kinds of cereals, natural meat and poultry, available vegetables. Not so long ago we wrote about how without sacrificing quality.
An unbalanced diet leads to poor physical and moral condition. And when you are faced with a crisis, being unwell will greatly hinder you.
Step 9. Keep fit and get enough rest
They go hand in hand, enhancing each other's effect and promising you the excellent physical and mental well-being that is so necessary to deal with stress.
Set aside time every day for a little exercise and a walk. You don't need to kill yourself in the gym, pumping reinforced concrete biceps, you just need to be in good shape.
Get enough sleep. Go to bed early so you don't wake up to an alarm, but to your own biological rhythms. Healthy sleep will keep your mind clear and your mood good.
Step 10. Use your free time to your pleasure.
One last tip: Find free hobbies for yourself. Don't confuse this with activities that simply pass the time, such as surfing the web. Find something that you immerse yourself in, something that brings you pleasure and leaves a happy aftertaste. Conducting free time By doing this, you will strengthen your morale.
The financial crisis is a difficult test for any of us. But you do understand that if you give up and try to leave everything as it is, it will definitely not be better. Hold on, go ahead with a clear mind and a strong spirit and solve problems.
For beginners: breeding a broiler at home Boiled water for broilers
Only lovers will survive
Features of advertising aimed at children
retouching old photos in photoshop retouching old photos
What is an NPO: decoding, definition of goals, types of activities Does a non-profit organization have the right