Have you ever undertaken a first aid course? It’s a selfless act which might save a life. It might not benefit you personally but it may make the difference between life and death to somebody close to you – or even a complete stranger.
If, after completing a first aid course, you happen to come across somebody with a gaping wound, then you’ll know that one of the first things to check is that your patient is breathing. The logic? If you don’t breathe, it won’t take long for your heart to stop pumping oxygen-carrying blood around your body (including to the gaping wound). This is not to say the gaping wound isn’t serious – it could be life-threatening. It’s a matter of priorities. And so it is with a business.
The life blood of a business is cash. So the first survival priority for all businesses should be cash control. Whatever the underlying cause, a failed business ultimately runs out of cash. Even if a company perhaps owns its own premises worth millions of pounds if it cannot pay wages, essential suppliers, utilities, etc. there is a strong likelihood that its heart will stop. And if the core business is sound that is an absolute shame because each time a business ceases to exist there are casualties including unpaid creditors and staff losing their jobs. In the greater scheme of things the business can no longer contribute to economic growth (often measured by GDP) and unemployed staff become non-productive and may become a financial drain on public funds.
But it doesn’t have to be like that – financial first aid is available. In the same way that a quick response to an accident is crucial for survival and early attention to medical conditions usually makes the prognosis for recovery better, the same applies to ailing businesses.
Licensed insolvency practitioners don’t just bust companies! If you are a business owner and are experiencing cash flow problems (or even better if you can foresee them coming) they can help you to avoid a serious crisis. It doesn’t matter whether your company is a micro business or achieves turnover in the millions, a good licensed insolvency practice can help you to formulate a survival strategy. They have links with banks and other more specialist lenders and providers of private investment and funding. Even if you have allowed matters to drift and creditors are closing in, they can still help.
And just like first aid, taking advice at an early stage will give your business the best chance of a positive outcome.
If you wish to discuss your circumstances further, please don’t hesitate to get in contact with us as soon as you can, so we can start to help you right away!
Steven Colwell
May 2016
