When it comes to insolvency, prevention is always better than cure, so what can you do to prevent insolvency from...
Being a company Director is a position of great responsibility. Whether a sole Director or one of several, you’re aware that whatever happens with the company, the buck stops with you. With the ultimate control of company in your hands, as a Director you have a lot to think about and precious few with whom to share that burden.
For Directors who’ve built their business from the ground up, who’ve struggled through the tough times, fought to make it work and made tremendous sacrifices in order to succeed, it’s natural that they regard their company as a piece of themselves. So if the business they’ve built with their own two hands gets into difficulty and becomes insolvent despite their best efforts, the pressure of insolvency is very real and it can be hard not to take it personally.
Debt, Distress and Mental Health
With so much invested in a business, on both a financial and an emotional level, it can be hard to switch off at the end of a day. When things are going well, or if things are going badly, your mood may well be affected, for better or for worse.
In the case of financial problems with your company, the stress you feel during the day can follow you home. It can affect your life, give you sleepless nights, make you distant and ultimately take its toll on both your mental health and on your relationship with the rest of your family.
The connection between debt and mental health is well documented and company Directors are not exempt from its effects.
Relieve the Pressure Of Insolvency
Company Directors are in ultimate control of their businesses. So it can be incredibly distressing when the pressure of insolvency forces them to face the prospect of not only having that control taken away, but that the company they’ve put so much into, that they rely on to feed their families and which serves as a source of pride in their own achievements, may be about to collapse around them.
For company Directors, the number of people who will be affected by each decision they make magnifies the pressure of insolvency – family, employees, trading partners and others besides. There are people who will be directly affected, and there can also be people who might change their perception of the Director based on what happens to their business.
At Lines Henry, one of the best parts of our work is providing relief to those struggling with the burden of financial pressure. With company Directors especially, there’s often a visible change during the first consultation, as worry is replaced by purpose and uncertainty is replaced by certainty.
While saving a business in distress is not always possible, relieving the stress of a person by sharing the burden and taking practical steps towards a better outcome are often the most rewarding part of being an Insolvency Practitioner.
Speak to us, we can help.