What Really Constitutes a Business Crisis?
Before we dive into what to do when your business experiences a financial crisis, let’s clarify what this term actually means: Your business is NOT in crisis because your manager walked off the job or a customer fails to pay their invoice on time. Your business MAY be in crisis if you realise that you don’t have money in the bank to make payroll or remittances to the Australian Taxation Office on time or your trade creditor obligations have blown out.
What Should You Do If Your Business Takes a Turn for The Worst?
1. Don’t Wait Until It Becomes a Crisis
If most business owners were honest with themselves, they had an idea that something was going wrong on the financial side of things long before everything exploded. The earlier that you recognise and seek help for the problems, even if you don’t know exactly what they are, the more options will be available to you for addressing it. As a business’s financial outlook becomes more bleak your options thin out.
2. Realise That You Need Help
Although you may be an expert in your particular industry, you’re not necessarily the best manager of your own financial crisis. For one thing, you’re probably part of the reason that the crisis exists in the first place. This isn’t to say that you knowingly made cash flow mistakes, but that at least some aspect of your management created the right environment for a downturn in revenue. The nice thing is, there’s plenty of help out there. ReGroup Solutions provides a highly specialised suite of services that helps companies overcome their financial problems and set the stage for long-term sustainability.
3. Seek Out Solutions That Create Cash
As we mentioned above, many business owners only realise that they’re in a bad situation when crisis strikes and they can’t come up with money for payroll, lease payments, trade creditors or statutory obligations. In these situations, ample liquidity is crucial and every expense must be examined under the microscope. ReGroup Solutions will help you to assess available strategy within the following four key success elements – Restructure, Renegotiate, Recapitalise and Retain.