Companies should invest as much time and resource into cash management as they do into sales if they are going to emerge prosperous from the downturn.
According to a Birmingham turnaround expert Simon Adcock from Deloitte, capital remained king for the recovery.
He said: “There may be encouraging signs that we are starting to come out of the recession, with official data from the Office for National Statistics showing the economy grew by a faster-than-expected 1.1 per cent during the second quarter of the year, but now is a critical time for businesses.
“As we have seen from previous recessions, more businesses fail during the recovery as they do during the recession itself, usually because the weaker businesses struggle to fund growth or restructuring costs at a time when their competitors have started to recover and are benefiting from the upturn.
“Too often businesses’ first port of call when they require additional funding is their bank, when their first action should actually be to look within their balance sheet for cash generation opportunities.”