We are often asked how can I save my struggling business?
The answer to this question and the question of how to overcome business failure doesn’t lie in one simple solution. The consideration of how can I save my struggling business involves a full assessment of the business requiring business recovery, and to plan specific business turnaround strategy steps to address the problems in your business, to bring about a company rescue.
How can poor cash flow affect a business?
One of the most common signs a business will fail is a lack of adequate cash flow. Inevitably therefore it will be absolutely imperative when looking at how can I save my struggling business, to get cash flow back on track.
We are often asked how can poor cash flow affect a business?
- inadequate cash flow has wide ramifications for a business, and if cash flow is not available then it will not be possible to pay key creditors or employees or indeed yourselves.
- this can quickly lead to business failure and it is crucial to a successful business turnaround and company rescue that cash flow issues are resolved as as a priority.
Cost cutting and business financing
A quick way to resolve a cash flow problem is to reduce overheads and cut out the waste on any business turnaround. Remove completely the “nice to have” in a company rescue and anything not essential to the business recovery strategy. Carefully plan your cash flow to cover the business during times of difficulty. This may involve identifying the most appropriate finance partners to work with you to restore the business in business turnaround and bring about company rescue.
Company restructuring / business restructuring
It may be necessary to make use of some standard company restructuring tools. There are various company restructuring tools, and what is suitable for your business will depend on the specific circumstances of your business recovery situation. For example:
- enforce share security;
- look for a new money or equity injection;
- allow for a debt for equity swap;
- have a break up sale or sale of non-core assets.
There are other ways to help cash flow which may involve speaking to your creditors to reach either an informal agreement that they won’t press for their debt for a certain period of time, or by using a more formal process such as a company voluntary arrangement.
If you are asking yourself how can I save my struggling business, the quicker you take advice from a business rescue expert and put in place a business restructuring plan, the higher the chances of business recovery and company rescue ultimately. At Francis Wilks & Jones we have an expert team in place with a vast range of experience on business recovery strategies for businesses of all types. If you have a struggling business which is viable, with the right help from a business rescue expert and the right business recovery strategy in place, it is possible to effect a company rescue. Contact the experts at Francis Wilks & Jones to talk through your options.