It doesn’t matter how efficient you are at running your business. There will be times when it is difficult to make ends meet. The important thing is what the next steps are. Businesses have quiet periods just as they have busy periods. However, if your company is experiencing more trouble over time, it could be an indication that it may be in financial distress. Over the years, many businesses have made the costly mistake of hiring so-called business consultants and doctors. They have unfortunately paid the price far more often than they should have. Professional investors and business turnaround specialists are far better than consultants in these cases. They will be there for you from the beginning. We will now look at some of the downsides to insolvency practitioners, as well as so-called business consultants. Finally, we will conclude by examining why professional investors and turnaround experts are a better option.
There are some drawbacks to consulting and business doctors.
You should contact a company consultant if your company is facing financial difficulties. They can give you advice on the different options or connect you to the best accountants in their opinion. They can provide “the best” financial advice, etc. They will want to keep you around as long as they can since you are basically hiring them. They will help you, but only after they have made as much as possible from you. And once again, they can’t offer any value to your business that is falling apart.
Insolvency practitioner route.
You might also consider consulting an Insolvency Practitioner. Although IPs offer a free initial consultation, if you decide that you want to initiate insolvency proceedings, you may be charged anywhere from PS3,000 to PS10,000. This is a significant amount of money, especially for a company struggling to stay afloat.
IPs have a legal obligation to give you the best advice and all options. They will offer to liquidate the business if it is not viable. It may be possible to restructure a company if the business is financially sound but insolvent on a cash flow and balance sheet basis. They may offer an Administration Order or a Company Voluntary Agreement if that is the case. Administration Order has one major drawback. You lose complete control over the company’s assets as well as its operations. The appointed administrator will take charge of the company and allow them to continue trading while trying to get it back on track. The Company Voluntary Agreement (CVA) is a contract between your company, all its creditors. You are permitted to trade and pay lower installments. The credit score of the company is affected, and its reputation is damaged by creditors and contractors. This will mean that there is little to no chance of opening a credit account or taking a loan for business purposes.
Why not work with professional investors and turnaround specialists?
Insolvency is not the only option when you are in financial distress. It’s never too late to save or improve a business, especially if you tap into its untapped potential. This is where professional investors and turnaround specialists come in handy. Because they invest in your business, investors and turnaround specialists are there to help you succeed. Their services are free, and they offer advice and a wide range of business strategies. Many of these strategies are not well-known, but they have been proven to work. They are the best choice for investors and turnaround specialists because they want your business to grow and improve.