When it comes to running a business, it doesn’t matter how efficient your company is, there will be times when you experience financial lulls, the important thing is what happens next. All businesses experience quiet periods, just like they all experience busy periods, but if your business has been struggling more and more over the time, this could potentially be a sign that it is in distress, in which case you should act sooner rather than later. Many businesses over the years have made the painful mistake of hiring the services of so-called business doctors/consultants, and they sadly have paid the price more often than not. In these situations, it is far better to go with professional investors and business turnaround experts instead, as they are on your side from the get-go. Here’s a more detailed look at the drawbacks associated with insolvency practitioners and so-called business doctors and consultants, before we wrap things up with a look at why a professional investor and turnaround expert would be your far better choice.
The drawbacks associated with business doctors and consultants.
If your company is in a financial distress and you exhausted all options, the first thought you probably have is to contact a business consultant or so called company doctor. They provide you with an advice regarding different routes you could take, or put you in touch with the best, in their eyes, accountants. They will offer “the best” financial advisers etc. However, as you are paying them, they sadly wish to hang onto you for as long as possible, as you are basically employing them. It is in their interests to help you out, but only after they made as much money out of you as possible, and once again, they cannot offer anything to add value to your falling business.
Insolvency practitioner route.
Alternatively, you may consider speaking with an Insolvency Practitioner. IP’s provide you with initially free consultation, however if you decide to start insolvency proceedings yourself you could be charged anything from £3,000 all the way up to £10,000, possibly even more than that, which is a lot of money for anybody, especially a company that is already struggling to keep its head above the water.
IP’s are obligated by law to provide you with their best advice and every possible option available. If the business has no chance of surviving they will offer to liquidate it and that is basically end of the road for you. If the business is sound but it is insolvent on a cash flow or a balance sheet basis, it may be possible to restructure the company. If that is the case they may offer either Administration Order or Company Voluntary Agreement. The biggest drawback of Administration Order is that you completely lose control of the company’s assets and its operations. Appointed administrator will be in charge and they’ll continue trading whilst trying to put company back on track. Company Voluntary Agreement – CVA is different as it’s basically a contract between your company and all of its creditors. Typically you pay reduced installments over a period of time and you are allowed to continue trading. However company’s credit score takes a real hammering and its reputation is damaged amongst contractors and creditors. This means there will be little or no chance to open credit account or to take a business loan for a period of time.
Why go with a professional investors and turnaround experts?
When in distress, insolvency is not your only option, despite what others may tell you. It is never too late to save a business and to improve it, especially when you tap into its unseen potential, which is where turnaround experts and professional investors prove to be so beneficial. Investors and turnaround experts are on your side from the start, because they are actually investing in your business, so they of course need to make you successful because the more you make, the more they make. They do not charge for their services and advice, and they employ a vast selection of business strategies, many of which are relatively unknown, but don’t be fooled, these strategies are tried and tested. Investors and turnaround experts want to see your business grow and improve, and they have the tools and capabilities to allow it to do so, making them your best choice by far.
Is your business in danger of becoming insolvent?
Are you experiencing cash flow difficulties?
Do you want to get back on the path of success but don’t know where to start?
If you’ve answered yes to any of the above questions, then you have come to the right place. Why give up on your dream or abandon your life-long passion when you can get help?
I specialise in helping businesses just like yours return to winning ways. I have several years of investment experience and with your great business ambitions, there’s no doubt that we will make an excellent team.