Registering a Ltd company isn't the only way to incorporate, there are many other types of company, each with their...
Whether it might be because of the state of the larger economy or due to more specialised market forces, many businesses can find themselves in difficulty at some stage. There are several things that can be done if a company seems to be failing, and taking the right kind of proactive approach can often result in a dramatic turnaround. Here are some of the most common steps that can be taken by any company that is struggling;
Usually a business that is in trouble will have some form of financial difficulty at the heart of its problems. Although an influx of money might not always be the right answer, sometimes it is all that is needed in order to get through a sticky patch of trading or a period of restricted cash flow. The recent banking crisis has led to a situation where there are now many new forms of funding available today. These include peer to peer lending and ‘business angel’ investments and mean that a company need not be totally reliant on traditional banking sources, as might have been the case in the past.
Another way of solving problems is by getting an overview on the situation from someone who has not been involved up to that point. This can take many different forms including input from an independent advisor right through to the creation of a new managerial level position within the company. Often simply taking a fresh look at things from a completely new perspective can lead to finding solutions for problems which may have seemed intractable before.
In cases where things have got to a point of no return and there is no realistic chance of turning things round, winding up the company might be the only practical move to make. In law liquidation is the process by which a company is brought to an end and any assets, including property, are then redistributed. Sometimes the process may be compulsory due to action by creditors, but of course voluntary liquidations are also made in cases where the business has simply run its course or the owners want to step down or retire. Whatever the reasons, if you think that dissolution of your company may be the best way forward, you should always take specialised legal advice on how best to go about it. Lines Henry can help you with business recovery or Liquidation if necessary but the sooner you get help the more options you will have available to you.