HomeFWJ TakeawayResourcesHow can a business avoid failure?

We are often approached by clients who ask how can a business avoid failure? There are various options available to businesses with solvency issues and our expert team is here to help. Below are just a few areas which can make a difference.

Having in place a proper Business recovery strategy

If you want to know how can a business avoid failure, the first thing to look at is what problems there are in the business, in order to establish a business recovery strategy for a successful business turnaround and company rescue that address those specific issues.

Minimising poor cash flow

There are many reasons for a business failing, but most businesses we see looking for company rescue have inadequate cash flow. To bring about any company rescue effectively, it is very likely that a full review of the costs and funding of the business will be required for a business restructuring and company rescue, which will provide a solution to address poor cash flow.

Review of essential staff

A business recovery strategy which needs to solve cash flow problems will usually require the business turnaround plan to include cost cutting in some way. This could be by reviewing employees, and looking at a business restructuring to retain only staff that are key to the business recovery and successful company rescue.

Raising finance

Raise finance to address cash flow by selling non-core assets if appropriate, or release shares in order to raise funds which can help with business turnaround and business recovery. Consider increasing cash flow through refinancing or increased borrowing, even if temporary.

Contacting a professional turnaround expert

It is generally beneficial to a successful business recovery strategy that you discuss your business turnaround with an independent business rescue expert. Selling assets and/or refinancing or increased borrowing may be the answer, but it is vital to look at the reasons behind what causes a business failure in the first place, in order that your business turnaround plan doesn’t simply lead to an increase in debt and an inability to effect a business recovery and company rescue.

Each business is unique – proper advice is always recommended

There is no one formula for business recovery as no two organisations are the same. Inevitably however it will be essential to stabilise the business in order for a successful company rescue to take place, and this will involve defining your business recovery strategy to ensure that any increase in borrowing or cutting of costs, including cutting some employee overheads, will be worthwhile in your business restructuring process.


If you want to know how can a business avoid failure, speak to our expert company rescue team at Francis Wilks & Jones for advice on a business recovery strategy for your business. With the right help from a business recovery expert and the right business recovery strategy, most issues can be resolved.

Contact us in confidence