While a percentage of new businesses go on to become sustainable traders, many fail during the first 6-12 months, which might be due to underfunding or marketing errors, and even established companies can suddenly experience a turn for the worse. There are many factors that could result in a company having to cease trading, and as soon as a business owner thinks he is trouble, he should call in the business recovery experts, who have the know how to turn things around, and should the business be unsalvageable, they would be able to wind the business up in the most cost effective way.
Performance Based Industry
If your business is ailing and you would like some professional help, a quick online search will help you locate a company that can offer pre pack administration and other insolvency solutions, and there are many awards to be claimed in this sector and by choosing a rescue specialist that has a tidy number of awards, including “Turnaround of the Year”, which is a very prestigious prize, then you are assured of hiring the very best.
Making a Decision
Making the decision to move the business into administration isn’t something to rush into, and this is most definitely a time to seek out the business rescue experts, as only they can really evaluate the current status of the company as an ongoing concern, and can offer the right advice at a stressful time. If the best thing to do is go into administration, this will protect the business assets and allow the business to continue trading, with conditions, of course. The other thing to remember is that, as a business owner, you are very emotionally tied, and that can sometimes cause a person to make the wrong decisions, whereas, the business rescue guru is completely impartial and will give you their honest opinion on the best solution.
If a company goes into administration, it must be in the hands of a registered insolvency practitioner, and by seeking out a law firm that has such a qualified person, they can take over the administration of the business. A business might enter into administration in an attempt to turn it around, or it could be done to ensure that assets are realised for a major creditor, and the business rescue expert would be able to advise on the best course of action.
In some cases, a company has found itself in financial trouble due to poor structuring, and the business recovery specialist can restructure the organisation to improve the funding process, with maximum liquidity and least cost. This involves mapping the business practices, which are then benchmarked against peer practices, which should raise performance.
Whatever the cause of a business failure, one should never make a decision to close the business without first talking to a business rescue specialist, as they would be able to advise you on the best route to take.