We are often asked “What to do if business is going down”? One of the best things is to take stock and put in place a proper business recovery strategy. Seeking external help from professionals at this stage can make all the difference between success and failure of the business.
Business recovery strategy
If you want to know what to do if business is going down, it is important to review what are the problem areas within the business. You can then devise a tailored business recovery strategy for your business, leading to a business turnaround and company rescue.
There can many reasons for business failure, but one that must be addressed in all business recovery strategies is inevitably poor cash flow. On a business restructuring a full review of the costs and funding of the business is vital for business turnaround and company rescue. An effective business recovery strategy will usually require the business turnaround plan to include:
- cutting down on costs;
- and/or sell non-core assets;
- or selling shares.
in order to raise funds to ease cash flow. A business rescue expert might also discuss with you raising funds in some other way, by refinancing or increased borrowing.
It is likely to be beneficial to a successful business recovery strategy to discuss business turnaround with a business rescue expert. Selling assets and/or refinancing or increased borrowing may be the answer, but it is important to look at the reasons for the failure and what causes a business failure in the first place, so that your business turnaround plan doesn’t simply lead to an increase in debt and an inability to properly bring about company rescue in the long term.
Each business will need its own individual advice
There is no one formula for successful business recovery. All businesses have differing needs. It is advisable that the first step is to stabilise the business in order for a successful company rescue to take place.
This could mean looking at cutting costs, possibly some employee overheads. It should also involve defining a business recovery strategy to ensure that any cost cutting or increase in borrowing or, is worth doing in a business restructuring process.
If you want to know how can you prevent a business from failing, contact one of our expert company rescue team at Francis Wilks & Jones, who can advise you on a business recovery strategy for your particular business.