In the UK alone, there are a wide number of businesses that file for bankruptcy and insolvency. It’s a sad state of affairs. Almost 80% of companies fail within their first five years. As such, it means that more and more businesses are opting for the insolvency route. But, it doesn’t have to be that way. On the contrary, there are some simple and effective ways that you can make your business work. You don’t have to opt for insolvency as the first port of call.
Of course, it goes without saying that many business owners and CEOs don’t want to give up their business. But, simple restructuring can ensure that your business is still viable. It may mean downsizing. It may mean re-thinking your company plans. Whatever the case maybe, we’re going to find out more about how you can avoid insolvency.
Intervene Early: Be Proactive
Your business is your baby. So, it’s time to stop burying your head in the sand. Lines Henry has suggested that companies can seek advice for insolvency issues. By doing this, they are proactive in their stance to avoiding the problems of debt. Getting in a consultant can be a smart move to make.
They can highlight issues within your venture to ensure that you are restructuring your business in a smart way. Seeking help from professionals, like consultants, can be a savvy move to make when you want some stringent advice. But, speaking of insolvency companies that specialise in corporate insolvency can be a good move too. After all, they can profound advice on how to make sense of your finances in a more detailed way.
Mapping Your Accounts
Your bank will be mapping your accounts. They will be noticing increases, decreases and financial troubles within your venture. So, you need to ensure that you are monitoring your account behaviour. If your business is experiencing problems, you need to map your accounts. Looking at your bottom line and your outgoings is vital. How can you make changes to your outgoings? Will you need to make employees redundant? Is now the time to downsize your premises? Can you get a better deal on your suppliers? Would it be wise to implement a small price increase to your clients?
All of these things need to be monitored in a controlled way. Do the maths and figure out what is best for your business.
The Art of Negotiation
Okay, so talking to your creditors may be a terrifying prospect. But, for the sake of your enterprise it needs to be done quickly. Ignoring creditors and cash flow problems is a rookie mistake. You need to ensure that you are making sense of your finances and that your creditors are aware of your issues. Negotiating payment terms, as well as talking about interest breaks and the amount that you pay back can be a smart move to make. After all, you need to ensure that you are reaping what you can afford. Remember, it’s cheaper for your creditors to give you a break than to take you to court.
Insolvency sometimes cannot be avoided. But, implementing these measures can ensure that you give your business one last push. You never know, it could be the making of your enterprise.
