If you own a company and you suspect that it could be insolvent or is facing financial difficulty, you should get in touch with an insolvency advisor who is best placed to investigate and advise.
Here are some important areas to consider and potential remedies to rescue your business
Is everyone involved in the day-to-day running of the business clear about what your business plan is and actively supporting it? Communication is vital to the efficiency of the business and if the business plan is unclear it can lead to confusion and poor performance.
Are you making regular assessments of the business to ensure plans are being followed? Making sure targets are met and giving employees and others involved in the business clear responsibilities will ensure that the business plan is followed.
Is the business run efficiently? The production process should be as simplified as possible and quality of goods or services maintained.
If other companies in your sector are producing more volume it could be time to review your processes.
Keeping management accounts is important to the long term survival of any business.
At the most basic level a good understanding of the money the business is making and its ability to maintain cash flow need to be assessed regularly.
What an insolvency advisor can do
Your advisor should establish an understanding of your business and issues before assisting you in negotiating a workable agreement.
The focus is to maintain co-operation with creditors if the business can be saved.
If required your advisor will undertake a viability review and formulate a rescue plan, possibly via the most appropriate insolvency process.