Business Turnaround
Is your cashflow causing you problems? Are you unable to pay bills as they fall due or is your balance sheet showing that you have more liabilities than assets? If so, chances are that your business is at the stage of insolvency. At this point it is important you speak with a business turnaround specialist.
There is no need for undue panic at this stage, however. Many firms finding themselves in this position do the right thing and consult a business turnaround expert immediately. By doing so, they prevent the business from deteriorating further, avoid court action and steer away from travelling down the route of personal liability.
The Role of A Business Turnaround Specialist
The following section outlines some of the roles a business turnaround specialists may perform in order to get your business back on track:
- Items which will be examined will include management accounts, and the sales order book.
- If the firm is deemed to be salvageable, a business turnaround strategy will be devised, detailing timings, likely financial impact and methods of measurement to gauge success.
- It is likely that resistance will be met to most changes deemed necessary. This is purely human nature and turnaround specialists will be experienced in dealing with such situations, detailing quite clearly to key staff members, the consequences of not implementing these changes and bringing them on board to effectively roll out the required actions.
- Communication with all staff members is vital, to avoid formal announcements being overtaken by the office grapevine and even worse, false rumours being spread. This is particularly relevant when job losses are imminent. Just as important, however, is reassuring remaining staff members and achieving buy –in for the new changes.
- The bank and other lenders must be notified that a turnaround procedure is in place. This will ensure the continuity of a good working relationship, which is vital when attempting to negotiate terms.
- Indication of business turnaround may throw suppliers into a panic, prompting them to demand payment immediately. They should be reassured and this could even be an ideal time to renegotiate more favourable payment terms.
- Identify any assets which are not being used and if appropriate, liquidate them to free up additional cash. Overheads should be limited wherever possible.
How Touch Financial Can Help
Touch Financial, with decades of experience in dealing with businesses facing severe financial difficulties, may be able to assist you with the turnaround process. We offer several services aimed specifically at helping businesses facing insolvency:
- Debt collection
We have achieved considerable success with our methods of communicating with outstanding debtors. - Invoice factoring
You could release the money tied up in outstanding debts by using this method. - Additional borrowing
We may be able to secure extra funding for your business, from our carefully selected panel of lenders – giving a much needed boost to your cashflow. - Analysis of outgoings
Many business owners are surprised at the multitude of ways in which they can cut expenditure and realise untapped capital reserves, simply by cutting overheads and expenses. - Asset financing
You could release some of the capital tied up in your assets. We will advise you if this is possible.
Insolvency may not be the end of the world – or your business, but don’t make the mistake of burying your head in the sand. Take action today and ring us on 0845 3889725 or simply complete one of our online quote forms. It could mean the difference between survival and liquidation.
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