Cashflow Fixes: Immediate Steps When Trade Drops Off a Cliff

When takings fall 30% overnight, survival depends on speed and clarity. Here is the exact response plan I use with coaching clients so rent, payroll, and HMRC still get paid.

1. Build the Daily Cash War Room

Create a simple spreadsheet with columns for opening cash, expected income, committed outgoings, and closing cash for the next 13 weeks. Update it every morning. Colour-code red days where the pot goes negative and focus every action on removing that red.

2. Triage Costs by Impact

• Must Pay: wages, rent, HMRC, licensing.
• Re-Negotiable: drinks suppliers, food wholesalers, entertainment contracts.
• Pause: subscriptions, marketing retainers, linen upgrades, agency staff. Call each supplier in order of spend, share the plan, and propose payment plans. Most will accept weekly transfers if you show discipline.

3. Convert Stock to Cash

• Highlight high-value spirits for feature pours and tasting flights.
• Bundle slow-moving wine into limited-price carafes.
• Promote cellar clear-outs via email and social to turn dormant inventory into bank balance.

4. Sell Future Value Today

Offer gift cards with 20% added value, Sunday roast pre-orders, or membership bundles that include quarterly events. Make sure the cash received is ring-fenced for the bills threatening you now.

5. Focus the Team on Contribution

Share the numbers with supervisors. Challenge them to find £200 extra GP per shift through upsells, tighter pours, and reducing comps. Reward success publicly with vouchers, time off, or bar tabs.

6. Protect Marketing That Works

Do not go dark – double down on the channels that reliably bring bookings (usually email and WhatsApp for locals). Shift paid ads to retargeting existing audiences instead of fishing cold.

7. Talk to the Landlord Early

Bring your cash plan, proof of marketing pushes, and projected recovery timelines. Ask for a short-term rent concession or switch to monthly payments. Silence breeds distrust; transparency earns breathing room.

Mini FAQ

Should I take a high-interest loan? Not until you have exhausted operational fixes. Expensive debt without a turnaround plan simply postpones the pain.

What about staff hours? Trim from the edges – shorter shifts, multi-tasking, and voluntary unpaid leave before redundancies. Keep service standards intact or you will accelerate the revenue drop you are trying to cure.

Cash discipline buys you time; smart sales pushes bring the money back.