Businesses get into trouble. Even good businesses can have bad periods. Sometimes it is down to being run poorly, other times it is simply bad luck – you never know what is around the corner. But when the trouble starts it can be very worrying and very difficult to turn around. That’s when you want to turn to a business rescue expert.
If you are worried about the future of your company, then it can be a very difficult time. It can start to cause stress and lead to poor decision making which can make the problem worse. The important thing to remember is not to panic. If you have invested time and money in the business, then you really don’t want it to fail.
That is why it is the right time to turn to a business rescue expert to help get you out of trouble.
What is a business rescue expert?
A business rescue expert is someone who comes in from an external position, takes a look at your business and makes recommendations and decisions about how to turn the company around.
This involves looking at several key areas. One is the business funding. Where does the money come from, how much is there and is there potential to get more from other sources?
Another thing they will look at is the pressure from existing creditors. Can this be held back or can negotiations find solutions that are suitable for everyone at this stage? What are the long-term requirements of the creditors and what can be given to them to buy some valuable time?
Essentially, if you are worried about the future of your business – at any time but especially now when an impending financial crisis is making things more difficult – then you may need the services of a business rescue expert.
Professional advice that counts
It is often better to get professional advice at the earliest stage possible. If you think that your business is heading towards trouble and you seem unable to turn it around, then it is always best to get advice as soon as possible. This will lessen the detrimental effect on your business, staff, creditors and financial reputation. It may seem extravagant to pay for professional advice when you are in a tight spot, but it might just be the best money you ever spend.
There are numerous business statistics that can be quite shocking when you hear them. Around 50% of all businesses in the UK fail within the first five years due to lack of funds. Over the past few years there has been a 3% rise in compulsory liquidations and a 17% reduction in bankruptcies. In addition, there has been a 7% rise in individual voluntary arrangements. This is according to the Insolvency Service and Companies House.
At a time when the business world is making a move towards larger and more impersonal structures, small businesses can struggle to find the personal touch that they need to survive. This is exactly what you get from a business rescue expert. You don’t get faceless advice from a large governmental body or financial institution; you get real time and personal assistance that can help your individual business to get back on its feet.
How a business rescue expert works
Business rescue experts will have their own individual way of working but the process will generally follow a structure similar to the one laid out below.
Initial phone call
An initial phone conversation will lay out the scale and nature of the issue. You will be asked various questions that will help your business rescue expert to assess your situation, based on their knowledge of your industry.
Consultation
Following on from your initial call, an insolvency practitioner will then meet you to explain in greater detail how they plan to save your business. They will lay out a plan for how things are going to work and what steps will be needed to make the business profitable again.
Ongoing support
They will then work with you to make sure that deadlines are met, and plans are being actioned. They will support you through every step of the process and will be on hand to answer any questions you may have.
Possible solutions
There are multiple solutions for saving your business that a business rescue expert might suggest. These include options such as consolidating your debt. This means that you take all your existing debts and convert them into one monthly payment. So, rather than paying back lots of small amounts and at different levels of interest, you pay just one monthly figure that is easy to manage and stress free.
They may also suggest restructuring your business. That could involve changing the way the business operates, thinking about streamlining working methods, or even taking a closer look at staff roles.
If it is necessary, they may also be able to help you with exit strategies if saving the business is not an option. This involves finding the best possible solutions for closing the business that has the least possible impact on you, your staff and your creditors.
This is not always a bad option, and some businesses might just be better off calling it a day. However, a business rescue expert will try everything they can to make this a last resort.
So, if you are suffering from creditor pressure, HMRC tax arrears, cash flow issues or a winding up petition, then it may be time to call in some help. However, you don’t have to wait until it gets to that point. It may be better to act sooner rather than later.
If you would like to know more about business rescue experts and find out what they could do for your business, then get in touch with a member of our team. We are always happy to field questions and explain the best possible options in any financial situation. Give us a call if you fancy a chat – Leading Business Services on: 01603 552028.
