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Episode 4 // Stress Testing the Numbers
Championed by our friends at Community Futures Saskatchewan
Dating back to the early 1990’s, stress testing's been used by financial institutions as a way of determining their ability to respond to major market shifts. Given the seismic shift Covid's had on our economy, we thought it a good idea to apply the practice to small business.
Listen in as NTN Pro, Neil Jones, Senior Vice President, Financial Recovery Services, BDO Canada, shares with us the process he uses to financially stress test a business, and the steps he recommends we take to mitigate potential damage.
Part 1 // Scenario Analysis
If Covid has taught us anything, it’s to expect the unexpected.
What if… you lost a key customer, supplier or employee?
What if... a lender called their loan?
What if... you had to adjust your price?
In Part 1, Neil walks us through the tools and techniques that help turn uncertainty into preparedness.
Part 2 // Calculating Key Ratios
Ratios are all the rage, especially among lenders and analysists.
They’re quick calculations that speak volumes when it comes to determining the overall health of a business. Tune in to uncover which ratios Neil considers vital, and the benchmarks we should strive to hit.
And hey, if you need a good laugh, you’ll likely relate to a number of the common techniques Neil's observed Founders use to hide from the ugly truth of our numbers.
Part 3 // Reaching Out and Reinvention
It’s never too early to reach out.
If the numbers aren’t adding up, the sooner you ask for help, the more options you have. In this segment, Neil helps us catch our breath, take a pause, and review the choices available to us.
Change is inevitable. It’s how we deal with it that counts.
About the Pro // Neil Jones, CPA, CA, CIRP, LIT
Senior Vice President and Partner, Financial Recovery Services, BDO Canada
SUPERPOWER // Turnarounds
Neil is a Partner in BDO’s Halifax office with over fifteen years of insolvency and restructuring service experience working on behalf of both lenders and debtors. His formal restructuring experience includes proposals, receiverships, and bankruptcies under the Bankruptcy and Insolvency Act (BIA), and plans of arrangement under the Companies’ Creditors Arrangement Act (CCAA).
Informal restructuring services include financial and operational business reviews, financial budgeting advisory, cash flow monitoring, deal structuring, and execution. Neil’s industry experience includes manufacturing, construction, forestry, shipping and transport, education, retail, real estate, public sector, airports and aviation, and public sector, among others. Neil obtained his license as a Trustee in Bankruptcy in 2012.
Neil also has experience in Infrastructure and Capital Projects advisory services including infrastructure procurement advisory, long-term strategic infrastructure planning, and feasibility studies for infrastructure investment and capital expansion.
Prior to focusing on corporate advisory services, Neil gained five years of experience in audit and assurance services, obtaining the designation of Chartered Accountant in 2004. Neil provided financial statement audit and assurance services to the aerospace, energy, and shipping industries.
Have questions about how to turn things around in your business ? Reach out to Neil at NEJONES@BDO.CA or BDO.CA
About the Champ // Community Futures Saskatchewan
25 years of loans, advice and support for Saskatchewan Founders
Community Futures Saskatchewan has been in the business of encouraging and supporting their communities, volunteers and small business owners for more than 25 years. They know what it takes to start and grow a business, to raise money for a community project or organize to provide a much needed community service. And, they'll approach your idea in a way as individual as you are.
WWW.CFSASK.CA
Have an idea for a Gab Lab episode? Looking for help with a specific topic?
Hit us up at helpdesk@nailthenumbers.com
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