- Distressed Business Early Warning Signs
- Benefits of Early Intervention
- Common reasons for business failure
How do you know that your business is in serious financial trouble?
Here are some of the signs to watch out for. If you’re experiencing just one of them, there may not be cause for concern. But if you are experiencing a few, you and your team are probably under significant pressure, and need urgent help.
- Cash flow is unstable and constraining your business and you never seem to have accurate management accounts
- You need credit but can’t get it
- Profits are down, down, down
- Stress levels are up, up, up
- Your creditors are circling
- Your working capital is inadequate
- You are borrowing more and more but it’s never enough
If your business is failing financially, early intervention is critical if your business is to survive. Yes, that much is at stake.
This takes specialist skills and lots of experience, which you probably don’t have. After all, you never set out to run a business in financial distress, right? Even your regular accountant might never have experienced this situation.
But we have turned around many such businesses, and can help you, too. Here’s how:
- Stabilise your cashflow
- Get you back to profitability
- Help you make better financial decisions
- Full turnaround, rescue and recovery
- Fix underlying problems, so they never recur
- Support you and reduce your stress
- Reduce the stress on your team, too
- Give you valuable outside perspective and experience
- Ensure you are compliant with your responsibilities as director
It is important to diagnose correctly why your business is in financial trouble, so we can fix your issues fast.
There may be several factors involved and no two stories are ever the same. Here are some common reasons why businesses fail, which may apply to you too:
- Unforeseen events such as bad debt or Coronavirus
- Poor financial management
- Market changes, such as new competitors
- Weak financial procedures and controls
- Insufficient financial skills in-house
- Poor financial information delaying decisions, or causing the wrong decisions