This is not a complete guide to the actions you should take, but the rules here will hopefully guide you through the difficulties you are facing. There is one golden rule to remember:
If an action or step seems wrong or "smells" wrong it generally is.
Always think hard what your creditors might think those extenuating circumstances may seem reasonable at the time but if the business fails and you have no clear record as to why decisions where made, they may seem less appropriate in future. See an introduction for how to use the remainder of this site.
- Follow our guides and read the website thoroughly.
- Talk to us if you have worries or concerns we dont bite!
- Build a detailed picture of your financial position
- Build a detailed picture of your sales prospects
- Note down all decisions or assumptions you made when reviewing the position
- Be honest with yourself, those that work for you and those at home
- Take advice from sole trader-rescue and other professional advisors
- Look at all options before making a decision to ACT
- Consider all objectives yours, the businesses and those people around you
- Formulate an action plan and then ACT
- Talk to the bank
- Build a list of all your objectives
- Bury your head in the sand, problems will not go away, reading this website is a good way to start
- Guess about financial details- build a proper detailed picture of your debts and assets
- Spend lots of time building detailed accounts that are history
- Blame everyone else
- Ignore legal paperwork - answer it, fill it in take copies and act responsibly
- Prioritise creditors incorrectly - call us for details.
- Hide the issues from your employees and the people around you
- Ignore professional advice they can sometimes "see the wood for the trees" when you cannot.
- Ignore closing the business as a serious option, there is life outside your business and working for someone else may not be as bad as you think.
- Keep changing plans
- Lie to the bank or anyone else. They have a habit of coming back to haunt you
- Be unrealistic
Worried about poor cashflow? Covid-19?, How to pay wages on pay day? For expert advice on a range of issues download our free Ultimate Guide For Worried Directors today. Or just call us on 0800 9700539
Please note that the guide includes updates due to Covid-19 For instance there have been some changes to insolvency legislation that limits creditors actions and relaxes rules regarding wrongful trading. A new 20 day moratorium for distressed businesses has also been introduced.