Keeping the business alive It is possible to keep the
business alive but only if there is a reasonable prospect of
restructuring, attracting more finance or even a sale of the business.
If this is a key objective consider an IVA, Trading Out or Refinance.
Achieving a trade sale in the timeframe available may be very difficult
and the value of the business may be very low (or nil) but at least this
objective may be achieved. In addition some of the other objectives on
this page will be too. Maximising interests of creditors This should be
your key objective. If by continuing to trade, creditors interests are
compromised think about closure. Bankruptcy. However, if the business is
viable and if the meltdown of the assets of the business would lead to
minimal return for creditors then consider rescue and restructure. IVA,
Trading Out or Refinance. Maximising interests of employees If you employ
others this another very important area. Sometimes a rescue and
restructure that costs jobs is more valuable - it saves the other jobs.
IVA, Trading Out or Refinance. However, if the business is not viable
continuation of trade may work against this aim. Employment and
insolvency is a very specialist area, you must take advice on this
area. Maximising you own interests Consider the personal objectives
opposite. Crystallising a difficult position It is sometime easier not to
make a decision for fear of getting it wrong. After all your business is
a living, changing, moving thing. BUT we always recommend making a
decision and working hard to achieve the outcome. In our experience the
uncertainty that insolvency creates can be very debilitating. You will
become less and less effective as a business person and the business
will suffer. IVA, Bankruptcy, Trading Out or Refinance. Complying with
the law As you may already know this is a difficult area, obviously we
all have to comply with laws we are aware of. But if you do not know
what the your duties are or what transactions you may or may not
undertake when insolvent - how can you comply? Take advice, email us,
speak to a commercial lawyer or speak to an IP. Not letting creditors and
customers down Again perfectly reasonable and achievable, sometimes a
pragmatic approach to this is closure. Bankruptcy. However once again if
the business IS viable think about the options. IVA, Trading Out or
Refinance. Not letting people down. This is an area that affects most
people we talk to. But be honest with your assessment of the business
viability, decide on appropriate action and explain the decision. If you
are strongly in favour of this course of action and demonstrate
leadership to achieve it, this is the best way not to let people down.
Failure to act is not. Back to top |
Getting rid of the pressure
Look, in our experience few
people set out to run an insolvent business. Because of many different
circumstances the business is under pressure. As THE senior part of that
business you are under pressure too. Often this can be because of
procrastination - failure to make a decision. Often this is improved
when a decision is taken. Whether closure or rescue and restructure
there will still be pressures (of a different kind!). IVA, Trading Out
or Refinance. Bankruptcy. Crystallising the position Related to above. It
is important to draw a line in the sand. Even if the decision is to
explore all options, compare and discuss and then wait for other pieces
of the jigsaw to fall into place - that is a decision. But monitor
progress and ensure that together you are achieving the set
objectives. Getting on with your life Perhaps it is just time to walk away
and get on with something else? It is rarely as bleak as you think to
close a business or go bankrupt -life does go on. Saving your marriage The pressures can be very difficult to leave at work. Your
spouse may also be part of the business. If so then involve them in the
decision making process. They often have an ability to see past the
pressure points to the bigger picture. Decide if the business pressure
is worth losing your marriage? Bankruptcy Doing informal deal. If it is
viable and you are determined, then think of how to improve the day to
day effects on your marriage. IVA, Trading Out or Refinance Protecting
your family As saving your marriage. Remember a family is much more
important than ANY business. Protecting your health As saving your
marriage, alcoholism, stress related illness and other problems can be
caused by business pressure and failure. Consider yourself. Are you the
right person for this job? Is being in business a good idea? Is the
business viable? IVA, Trading Out or Refinance. If it all seems to much
for your health and you cannot change lifestyle to avoid the symptoms of
business pressure, then consider closure. Bankruptcy. Avoiding personal
liability or personal guarantees This is a perfectly reasonable objective
from a human nature perspective. However, be warned trying to avoid this
may lead to problems. Remember the mantra: "maximise creditors interests
first". Of course you are a usually the sole person in the business who
has given security on your home. Sometimes though if the business is
simply not going to work it is possible to avoid loing the house.
Informal deal or Bankruptcy . Call us on this area. Not letting people
down This is an area that affects most people we talk to. But be honest
with your assessment of the business viability, decide on appropriate
action and explain the decision. If you are strongly in favour of this
course of action and demonstrate leadership to achieve it, this is the
best way not to let people down. Failure to act is not. |
