Change your mindset
It is important to draw a line in the sand. There is a different mindset and underlying approach to dealing with a company that is growing and one that has struck financial difficulties.
Up until the point of recognising that your company is in financial distress you will have been approaching the problem from a perspective of improving the trading performance of the company. When a company is in financial distress that is only one of the aspects to consider. In addition, you will have to consider many other issues being all of those items listed in our left hand menu.
It is very likely that some sort of restructuring will be required. It is quite pointless to be addressing issues such a achieving a 1% improvement in net profit margin if your business has significant debt or structural problems.
It is very difficult for directors to extract themselves from the issues that have been occupying them for years and change focus to the new issues. It will usually require an external catalyst to cause a director to do this. In some cases that is a legal notice, a call from the bank to say the Investigating Accountant is coming or a realisation that you can't pay next week's wages.
Rather than wait for those external events it is preferable that the catalyst is of the directors choosing. We recommend you use Restructuring Works to help you change focus. Our role can range from simply being a sounding board for ideas to conducting a full review and assisting with implementation of a new strategy. Why not CALL US NOW for FREE ADVICE.
Or if you would like to read more have a look at The Restructuring Spectrum to see where your company fits and then examine the possible solutions.
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