If you’re in trouble, the best time to get professional help was probably before the problems started.
The second-best time is today…
The important thing is to make sure you’re dealing with a professional. If you’re in a pre-insolvency position and you’re considering getting advice on your options, talk with someone who’s actually in the field, a member of the right associations such as the Australian Restructuring Insolvency & Turnaround Association who has experience in pre-insolvency work.
These people are going to act ethically and legally to help assist you in your situation. Pre-insolvency is not always the end of the world. There is help out there. And if you deal with a professional, they’re a lot more up to speed on what your options are.
At the end of the day, their job is to place you in the right position to make the best economic decision possible for you. The control and the power still lies with you to choose, and bankruptcy’s not always the only option.
We touched on having a conversation with your suppliers earlier, to let them know that you’re going to be a bit late, work out a payment arrangement, and enter into a more flexible term.
It’s the same when you talk with advisors – it’s about working your way through the process, as opposed to digging your heels in or putting your head in the sand and hoping things get better.
They probably won’t…
There are options out there and all of us are capable of getting ourselves into a rut when things look bad. But help is always there.
You’ve got to be careful as well, because you’re usually in a state of flux when it comes to these sorts of situations. So, making sure you’re dealing with a professional who’s got your best interest at heart is critical.
You don’t want to get caught up with cowboy who’s trying to claw every cent that’s left out of you, as opposed to finding a way to turn your business around.
You should definitely sound a few people out and see what the options are before you choose somebody to help you.
If you’d like professional advice from a member of The Australian Restructuring Insolvency & Turnaround Association on how to stabilise your business so you can put things back on track and stay there in the future, feel free to call us on 1300 740 066 or email us at firstname.lastname@example.org
To Sum Up
The strategies I’ve mentioned are the same as what we generally do for our clients if they find themselves in a similar situation. Because our overarching vision is to cut the failure rate of businesses from 80% to Zero, we do everything we can to help clients turn things around so they can not only survive, but so they can prosper.
Sometimes their problems are only a temporary thing, and just about everyone goes through a phase where business is not doing very well at some stage. Other times they are facing more structural issues, and we go out of our way to help them solve those as well.
So, for us it’s dealing with the problems in the most conservative and productive way possible, not the easiest way, because the easiest way might be just to close the business down. Closing down will have catastrophic consequences for everyone involved, so that’s the last option to consider in most cases.
There are a lot of things you can do before closing a business that can lead to a good outcome, and we’ve talked about many of them here.
Things you can do immediately such as running a special promotion to generate immediate cash flow, things you can do this week like finding new products to sell to your existing customers and developing new distribution networks, or helping your distributers sell more on your behalf, to other steps such as talking to the ATO about a payment plan, or talking to your suppliers about better terms…
The thing is that doing all of this stuff is not easy…
It’s easier to just close your doors and throw away the keys, or file for bankruptcy, or rip the assets out of the business and start another one…
I’m not saying the options I’ve shared in this series of posts are all easy, some of them are actually hard.
But they’re worthwhile because they give you a longer shelf life, because if you’re able to continue trading, you’re able to maintain your relationships, everything continues as a going concern and you can dig yourself out of a temporary hole and go on to succeed.
That is what I wish for you.
To see you become wildly successful in your business, so you can go on to create a valuable asset that funds your lifestyle and pays you a handsome dividend when you eventually decide to sell.
And I’d be happy to play a small part in that success, if you’d like me to.
Here’s What To Do Next
One way we can do that is each month we hold a small number of Free Business Strategy Sessions designed to show business owners how they can manage and grow their enterprises, or turn around businesses that are struggling right now to put them on a firmer footing.
Would you like to join us as my guest?
If you’d like to schedule one of these Free and obligation free one-on-one sessions, let us know by email at email@example.com or call 1300740066 and we’ll set things up for you.
About The Author: James Huy Vuong is a CPA, Registered Tax Agent, Business Broker, Certified Exit Planner and the owner of Your Accounting Partners, an Associate of Negotia Group and member of the Australian Restructuring Insolvency & Turnaround Association (ARITA). Partnering with businesses from start to scale thru to sale.
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