Building your company comes with its own risks. Some companies don't survive due to issues outside their control resulting in inability to pay their debts. In short, they become insolvent. Here are some practical tips to prevent you from going down the dark road of insolvency.
1. Negotiate With Your Creditors
Rather than waiting for the worst-case scenario to happen, contact your creditors in advance to reach an informal agreement. This can be a significant first step in the right direction. Talking to a disgruntled creditor is not the most desirable task, but given the circumstances, it is the best option. The vast majority of creditors would prefer to give you an extension to pay your debt rather than taking legal action.
2. Develop Turnaround And Profit Improvement Strategies
When you do the same thing, you will get the same results. The most significant factor in a company's success is focusing on your profitable drivers.
Professional Business Turnaround Specialists are equipped and experienced to help you look at your revenue and expenses with you and interpret them. This should lead to setting target net profit margin and target cost structure. Taking time to review and understand your numbers and refocus your energy on the most profitable parts of your business will help determine what course of action to take for initiatives like job costing, operations management and marketing.
3. Restructure Your Business
Your business may be viable in the long term if strategic restructuring action is taken immediately. There's a lot to consider in restructuring a business from setting target net profit margin and target cost structure, right people, right processes, right business model and strong growth. Addressing these key areas of your business can reduce your extreme financial distress fast and see your business recover, make serious money and grow.
4. Automate Business Process
Every business faces fierce competition--both in terms of sales and, just as importantly, efficiency and cost effectiveness.
Automating processes in your business will increase profitability and consistency because it replaces human error with repetitive tasks performed by software. This will free you to focus on higher quality products and services for your clients rather than wasting time and cost on monotonous procedures.
5. Get Professional Advice From A Specialist?
Business Turnaround Services (BTS) has one focus, reviving, transforming, and turning around SME businesses who are looking down the barrel of insolvency or liquidation. BTS provides their clients with over 30 years of experience and has 30 staff specialising in a hands on approach focussing on turning struggling businesses into healthy thriving ones.
BTS staff are professional advisors who are specialists in paying off crippling debts and cultivating positive cashflow founded on building the 5 Pillars of a Healthy Business.
If you want to avoid the path to insolvency or liquidation, contact Business Turnaround Services for a NO CHARGE consultation to discuss the ways we can help turn your business around.
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