- Distressed Business Early Warning Signs
- Benefits of Early Intervention
- Common reasons for business failure
There are many signs of a distressed business and below are a few to look out for. Singularly these may not be a cause for concern but when several are experienced together the stresses on the business and the staff will soon show.
Over 100,000 businesses fail each year in the UK alone and a disproportionate number of these are through inadequate financial management.
If you're worried about any of these we can help.
- Cash flow problems
- Bad relationship with creditors
- Difficulty obtaining credit
- Increased borrowing
- Declining profits
- Inadequate working capital
- High stress levels for employees and directors
The most basic and obvious benefit from early financial management intervention in a failing business is that it will survive rather than fail!
Directors don't set out to run distressed or insolvent companies so often have no experience or knowledge on how to deal with the situations that arise.
Early financial management intervention from Insight Associates will benefit your business in many ways including:
- Stability of cash flow
- Increased profitability
- Reduced stress on business owner/employees
- Compliance of Director responsibilities
- Outside perspective and experience
- Full Turnaround, rescue and recovery
- Fix underlying problems to avoid re-occurrence
- Timely management information for good decisions
There are many reasons that a business may fail. No two circumstances are exactly the same. Here are some common factors.
- Poor financial management
- Weak procedures & controls
- Unforeseen events such as bad debt
- Insufficient in-house skills
- Inability to respond to changing markets i.e. poor sales/new competition
- Delayed decisions caused by inadequate financial information