IRCG Publishes Free Cash Flow Modeling Spreadsheet for Distributors

Written by Mike Emerson, McKinnon Shisko on Wednesday, 01 April 2020. Posted in Pandemic Revenue Index, Business Strategy, Distribution

IRCG Publishes Free Cash Flow Modeling Spreadsheet for Distributors 250To supplement the weekly Pandemic Revenue Index data, Indian River Consulting Group has released a free downloadable cash-flow modeling spreadsheet.

The tool has been put together as a resource for distributors who have not developed the projection tools that will allow them to act early as events unfold related to the current COVID-19 global health crisis. Distributors that wait until cost-reduction and other actions are upon them will have to cut deeper and more drastically than if they devised strategies with triggers in advance.

Access the cash flow modeling spreadsheet for distributors:

Use the tool to run at least three scenarios:

  • Optimistic: Ideal case in terms of both duration and decrease in revenues
  • Realistic: Between optimistic and pessimistic
  • Pessimistic: Slightly worse than the worst you expect

The sooner you can identify which scenario is likely to play out, the less drastic adjustments will be. This is the main point of the tool, to identify the actions you will take under these various circumstances.

You will notice that cash will generally grow as sales decline. Because cash is increasing during the downturn, it often goes unnoticed that total working capital is decreasing. In fact, “it’s not the fall that kills you – it’s the stopping.” More businesses are likely to collapse in the upturn than the downturn.

We have chosen to put this spreadsheet in the public domain to support our industry. We encourage distributors to contact us with questions or discuss strategies as we endure this tragic pandemic. Reach out to me at memerson@ircg.com or give us a call at

More information and resources can be found here.

About the Author

Mike Emerson

Mike Emerson

Mike Emerson has been a IRCG partner since 2004. Mike joined Indian River in 1998 and has worked with hundreds of distributors and manufacturers of all sizes and within many lines of trade.

As a Partner in the firm, Mike has managed a broad array of projects. His main focus areas include: compensation design, strategy facilitation, market research, and data modeling and analysis.

Mike writes extensively on distributor and marketing channel topics and is frequently quoted on contemporary issues. He has authored four books, published by NAW: What’s Your Plan? Smart Salesforce Compensation in Wholesale Distribution, Working at Cross-Purposes: How Distributors and Manufacturers Can Manage Conflict Successfully, Value Creation Strategies for Wholesaler-Distributors and What’s the Right Plan? Effective Sales Incentive Design for Wholesaler-Distributors. Mike is also a university lecturer on marketing topics.

McKinnon Shisko

McKinnon Shisko

McKinnon Shisko joined IRCG in 2019. McKinnon leverages his diverse experience and wide range of expertise to help organizations and teams effectively and efficiently achieve their desired results.

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