While we all aspire to be successful entrepreneurs, there are times, when, for one reason or another, a business reaches the point of no return, and the owner(s) must take stock of the situation and formulate a plan. It might be that things are so bad, there is no question of a recovery, and in such cases, it is important to seek expert advice concerning insolvency, but in a majority of ailing businesses, it could still be possible to save the day. It might only need a sudden injection of capital, in which case a short term business loan would be appropriate, or there might be several reasons why the business is failing, such as poor management or misplaced marketing, and if ever there was a time to seek expert advice, this is it.

Business Recovery Professionals

There are organisations that are dedicated to business turnaround solutions, and often an unbiased, expert opinion can shed light on the causes, and with a team of marketing experts, a recovery plan can be established. There are several avenues a business could take regarding business recovery, and that’s where the experts come in, and if any part of the business is underperforming, they would very quickly determine this.

Company Administration

It is advisable for the company to go into administration if the owners are trying to continue to run the business as a going concern, and certain parts of the business could be auctioned to finance the recovery and also to minimise inactive assets. The business can operate without the pressure of legal action, as the creditors have agreed to specific terms and conditions that enable business to continue.

Company Voluntary Arrangement (CVA)

This is basically an agreement between the company owners and their creditors that allows the company to continue trading, and for some businesses, this is the ideal solution, and recovery happens within a year. The CVA is suitable for a company with temporary cash flow problems, and it enables the company to work themselves out of the situation without facing undue pressure from their creditors, and if you think your business could benefit from a CVA, there are specialised organisations who can help this become a reality.

Bankruptcy

This is another option for the business in dire straits, but bankruptcy isn’t right for every situation, and that is why you should first discuss your business with an expert, who can advise you accordingly on the best avenue to pursue. Corporate organisations, for example, cannot file for bankruptcy, they would have to become insolvent or undergo liquidation, as only individuals can be declared bankrupt.

The Value of Professional Advice

When a company is going through difficult times, often, the business owner is emotionally involved, and might not have a clear perspective of the situation, whereas a third party who is an expert in business recovery can see the business from an independent perspective and this can very often tip the scales.

Of course, timing is essential, and the moment you realise this won’t be something that goes away of its own accord, you should consult a professional business advisory service, and the best way to source such an organisation is with an Internet search.