Insolvency is something businesses of all sizes are vulnerable to as we have witnessed in recent years. Once a business gets into financial difficulty, then things tend to take on a momentum that is difficult to stop as the slide towards insolvency continues. Sometimes a business can be brought back from the brink if owners look closely at the following areas…
Work fast to identify issues that are leading to insolvency
There will be times where events are out of the control of directors but often there are underlying issues within the business that will lead to insolvency if they are not addressed. Complacency is one of them. Faith alone isn’t enough to save a business and those steering the ship must be prepared to change course when necessary.
Prioritise the important bills
Financial problems often arise from not paying bills on time. While it can be difficult to pay everything that is due, debts such as those owed to HMRC should be prioritised. This can buy time to settle those bills that are of lesser importance.
Work on improving business processes
Ensuring that resources are used efficiently and effectively could be all that is required to turn around the business. Sales are the lifeblood of a business so efforts need to be prioritised in this direction with the best people for the job. Administration should then be handled by staff best placed to carry out the day to day activities of running the business.