If you find your business is in a state best defined as “financial distress”, there is one thing that you definitely should not do: Don’t just throw up your hands and announce that you quit! There are a number of paths that you can take, most of which will produce an outcome that is best in your specific situation. But to make this journey, you should be working with someone who has a reputation for proven business-recovery solutions.
It’s a fact that small and medium-size companies are constantly influenced by internal forces and external forces that present challenges to owners, managers, and directors. Fortunately, those in charge are often able to make decisions and changes to maintain company health or even improve performance over a reasonable amount of time. This is not always the case, however.
It’s essential for those on the inside of the business to recognise deteriorating conditions early enough to take positive actions. This doesn’t happen in every situation, which makes it necessary to enlist the help of experts in the field of business recovery. As these specialists become familiar with your operation, they can guide you through a disaster recovery solutions comparison with the goal of producing the appropriate changes and decisions.
Of course, one of the most important things is to recognise that almost any steps taken with accurate and honest guidance will be a positive change. That’s the best reason for you, your managers, and your directors to begin working with these experts as soon as possible. Once all the details are in hand and they have a clear view of where your company stands, they can compare options, always including you in the process.
For example, they might pursue a business restructure, which can be financial, operational, or with elements of both areas in the plan. You’ll examine opportunities to increase sales while reducing costs. This in-depth review of your structure and your procedures can produce remarkable benefits and it may put a halt to performance decline. If your company has reached the “non-viable” status, you’ll need to take this step as part of a rescue and turnaround plan.
When you seriously need to recover from financial disaster, a careful comparison of your options might determine that a major change in business administration is necessary. The study might also show that you are best served by receivership or by creating a company voluntary arrangement. If equity investment is called for, you’ll see this as a result of your comparison.
In some situations, a detailed study of your status might show that liquidation is necessary or the dissolution process is the only avenue to consider. But you can depend on the experience of recovery specialists to ensure that you and your directors are taking the right path.