Top tips for your business this new year, use this chance to grow your business, don't repeat mistakes and take...
For Directors who’ve put their hearts and souls into building a successful business, it can be soul destroying to see, through no fault of their own, how pressures from the current financial climate can take a thriving endeavour and turn it into a struggling business. In some ways, having made mistakes and paying the price for them can sometimes be an easier pill to swallow than having made none at all and still being subject to a trading climate over which you’ve had no control.
As Licensed Insolvency Practitioners, we’ve seen an increase in enquiries from Directors seeking help for their struggling business, who have managed their companies well and even made contingency plans, but find their financial buffers exhausted by prevailing conditions.
There are a number of options which a struggling business might consider, some of which, if successful, might allow the business to continue trading, others offer the Directors an end to their troubles by closing he company int he most efficient way possible. All provide a way to end the current distress, worry and uncertainty of operating a business in a precarious financial condition.
Options to consider for your Struggling Business
A few of the more common options which might be appropriate for a struggling business are as follows;
If a business is in trouble, or even insolvent, there are a number of ways to acquire additional funds through borrowing or other financial instruments. From standard business loans, seeking external investment or other means of raising working capital, a business which has issues with cashflow needs to address this quickly and wither short or long term borrowing can provide a fix to cashflow problems.
A Fresh Perspective
Sometimes having a problem you’re deeply embroiled in can lead to certain degree of ‘tunnel vision’ when it comes to finding a solution. An external view can sometimes give the issue a different perspective by viewing the problem through a fresh set of eyes. Whether through bringing in fresh management or seeking the aid of an independent adviser to review the affairs of the struggling business, seeing the problem from a fresh angle might well yield a hitherto unthought of solution, or (in the case of an Insolvency practitioner) a solution which cannot be offered by anyone else.
An Orderly Closure
While there are often solutions to the problems faced by a struggling business, this isn’t always the case. There are times when it’s not possible, or desirable to save a business, but even if this is the case, there are ways to close a company down through liquidation, in a manner that provides the best outcome or all involved.
The Sooner You Act the Better the Outcome for Your Struggling Business
It’s understandable that seeking help with your struggling business might seem like admitting defeat, or acknowledging that you weren’t up to the task of dealing with your problems on your own. It’s a common frame of mind, especially for those who are accustomed to making the decisions and being in control and for whom that self reliance has brought success.
As admirable as it is to try to be self reliant when it comes to dealing with your own problems, there’s a wisdom in seeking advice from those who have specialised experience. If there’s one thing an Insolvency Practitioner has experience in, it’s how to deal with the affairs of a struggling business and how to obtain the best outcome possible, no matter what the circumstance. In any other aspect of your business, you might not hesitate to recruit the aid of a specialist to meet an acute business need, so why view a financial need differently?
Making a positive choice to seek help for your struggling business from an adviser with decades of experience dealing with problems just like yours is a smart business decision and when you consider that Lines Henry offers a free consultation to discuss your situation, there’s no reason not to contact us and get the ball rolling.
Speak to us, we can help.