“By far the most common business mistake in the UK is not brought about by doing something but by doing nothing.” - Sir John Harvey Jones

There are many reasons businesses fail, including:

  • Believing there is profit when there is lack of it
  • Over-reliance on illiquid assets
  • Unchecked growth
  • Failing to face the problem
  • Not getting external help

Behind the above reasons there are a lot of issues. Some of these might be:

  • Strategic challenges – the economy, technical development, obsolete products, competition, changes in industry etc.
  • Lack of financial control – to make sensible business decisions you need financial information on a timely, meaningful and accurate basis
  • Lack of operational control – obsolete equipment, workers not motivated, inefficient processes etc.
  • Lack of management skills and structure
  • A one off project has placed a heavy burden on the resources of the business

There can be many different problems within a business, but they can be identified by getting a business health check done. If done early enough, problems can be dealt with before they get out of hand. These problems can be fixed directly, the business can be sold on to someone with the ability to fix them, or the business can be shut down by using assets to offset liabilities.

If you decide to fix the business you will then need to ensure that there is an existing viable business, and you have enough time to fix it. You will need the support of all the stakeholders to go through this process .Finally you will need to ensure that there is enough cash, vision, and adequate management skills to achieve this.

We have team members who can do this, identifying causes and implementing reliable and workable plans by crisis management and corporate restructuring and with access to turnaround finance. Therefore it is important to identify the issues early enough so that there is enough time to deal with them. It is even better if you can avoid the issues by having the right external advisors to help .You will need to appoint them early so that they enough time to deal with the issues.