February 25, 2021 | Daywey Chen
As uncertainty is greater than ever, you need to think broader than ever. You not only have to think in terms of the short term but in the mid to long term as well. In the different periods, what is your worst-case scenario? We all like to think positively and look forward to a bright future. You may be investing in a new flexo press because you have received a promised large order for the next few years from a client. You may be investing in a new flexo to expand your product line. Ok, that’s great, but what if it doesn’t work out. What if your promised large order never came in? What if your order came in but was half of the promised volume? What if you were unable to bring on new customers with your expanded product line? You need to think about all the “What if”. You need to put on your pessimistic attitude. In your worst-case scenario, how long will you be able to last if the expected incoming cash flow falls short? Will you be able to renegotiate your terms with your financial institution? Will you be able to sell off the machine as a used one? Will layoffs be needed and how much it will cost you to layoff your employees?