While every new business strives to be successful, inevitably, there are some who fall by the wayside.
The first 12 months are a critical time, and should the company survive that first year, the right management direction and administration needs to be in place.
There are so many unseen variables that can influence the health of a company, some can be controlled, while others cannot, and should the company be in financial trouble, it is advisable to seek out the help of a business recovery guru.
Finding the Problem
Once you have come to the conclusion that the business is not healthy, talk to a business recovery expert, who will help you to identify the root cause.
It might be mismanagement or poor marketing, but whatever the issue, steps can be taken to rectify things. It takes an experienced and independent perspective to understand the cause of a failing business, and the expert has no emotional attachment to the company, unlike some stakeholders.
Restructuring the Business
In many cases, the framework of the administration leaves a lot to be desired and in such cases, the business rescue expert would recommend a management restructure, something they would oversee. They would have many years of hands-on experience in helping businesses to avoid insolvency, as well as guiding others through the liquidation process.
Some business are not salvageable and if the expert advises voluntary liquidation, this is no doubt the best course of action. At least by talking to a business rescue expert, you will understand all of your options and with their expert advice, you should make the right choices.
This is often the solution for an ailing business and often, when a company develops quickly, they do not have adequate resources to perform efficiently and that’s when problems occur.
Sometimes, the best solution is to downsize for a while, at least until the company is out of debt and by downsizing, you are reducing the company’s outgoings as well as receiving some capital when selling off equipment and other assets.
It might be the case that a company is pitching to the wrong target groups and subsequently, their advertising campaigns are not producing results.
With a totally new marketing plan that is designed for maximum exposure to the right people, things can be turned around. There are many possible causes for a business failure and it is only by calling in an expert that you can identify the problem areas.
It might be the case, where the business rescue expert advises voluntary liquidation and there are several ways to go about that.
Insolvency can be brought about by the creditors, forcing the business to liquidate its assets and repay the debt, or it can be requested by the directors. If the business rescue company recommends voluntary liquidation, they would be able to act as the insolvency practitioner, as they would be licensed to do so.
If a business is saveable, the business rescue guru would inform you and help you to take effective action to redress the balance and return to making a profit.