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RELATED INSIGHTS

Running a business can be overwhelming at the best of times; so when financial hardship strikes, it’s more important than ever to seek professional advice. The emotional toll of facing insolvency can impede a business owner’s ability to objectively assess their financial situation. As a result, it is less likely that the appropriate strategies will be put in place to revive the business.

In New South Wales alone, a staggering 350 businesses go into liquidation every week. With the right advice, many of these businesses could be saved. By contacting Wisdom Business Consultants, our team can evaluate your financials and offer an external, objective perspective on the best strategies to improve your business’s situation. Strategies may include:

Performance Improvement

Improving your business’s performance involves bettering cash flow, reducing costs and more effectively managing risks. By identifying the strengths and weaknesses of the business, the appropriate processes can be streamlined to make effective, measurable change. This can then be assessed in line with the business plan to ensure both short and long-term goals are achieved. 

Informal Restructuring

Informal restructuring affords businesses a behind-the-scenes style approach to recovery which can mean less stress and faster resolutions. With this strategy, negotiations are facilitated between directors and creditors, allowing them to avoid proceeding to court.

Voluntary Administration

A voluntary administrator is an individual who is appointed to analyse a business’s affairs and financials in order to identify a solution that benefits both the business and its creditors. This may mean entering into an agreement with creditors, proceeding to liquidation or being returned to the company directors.

Professional advice is essential to not only provide your business with a tailor-made recovery plan, but to ensure it navigates insolvency in a manner that is compliant with both commercial and employment laws. The technicalities and legalities surrounding insolvency can be confusing, therefore it is a situation best navigated with the assistance of expert business consultants.

Our friendly team have a combined industry experience of over 50 years and are ready to help turn your business around. To get started, contact us here today!

References

Esolvency. ‘Voluntary Administration’, esolvency.com.au, Online, [no date], https://www.esolvency.com.au/services/voluntary-administration/#:~:text=Within%20Australia%20Voluntary%20Administration%20is,enter%20into%20a%20Deed%20of (Accessed 29 June 2022)