Use Company Rescue's top ten tips for sole traders: print this off today.
- If the business is insolvent the law requires you to act in the best interests of the creditors. So rule number one, maximise creditors interests in all decisions and actions, not just your interests!
- Don't make decisions based upon advice from a man in the pub; these people don't know the law or how to act properly. They will get it wrong and so will you.
- When making important decisions, remember that you could you're your home, marriage and become bankrupt. So think carefully and WRITE down decisions and why they were made. This is called taking minutes. This can save you from forgetting WHY a decision was taken in future.
- Use this website to understand the options you have. Is it STOP or GO? Is it viable or not? What does your heart of hearts tell you?
- Make a list of all assets and liabilities. Put this on a single sheet of paper. List the good things and the bad things. This will help establish the viability of the business. Do the same for your personal assets and liabilities. Remember as a sole trader the business debt is your debt.
- Work out your cashflow daily for at least the next 60 days. Ask us for a free, easy to use cashflow model if you need help. Control cash daily. When we do rescue work we only pay wages, insurances and essential items UNTIL we know what the plan is.
- Stop all expenditure and payments until you work out the PLAN. Break it down to simple steps.
- Set out a recovery plan if its GO. One sheet of paper is all that is needed. What steps need to be taken: do you need to cut costs, people, products, spending, drive marketing/sales? If its stop, act quickly.
- Make a decision based upon the above steps.
- ACT fast, get professional advice; all good corporate recovery people will give you a free first meeting.
All of these steps are carefully designed to maximise creditors interests and protect you as an individual. This is important as your personal assets and those of any spouse are at risk now.
Take advice from experts, by the way we do this stuff everyday!