Page 26 - How To Avoid Going Bust In Business

8: Get professional help

Think about it: Your business is in bad shape. That might just be because your
management skills are not as sharp as you think.

Call in the economic first responders. Accountants. Mentors. Anybody with a track
record of businesses success. Your local business association often has such
people on call. Use them. They will give you a fresh perspective on the problems.
Just as importantly they will keep tabs on progress, making sure you don’t slip back
into bad old habits.

If things are really bad, consider getting a professional liquidator on board. That may
sound counter-intuitive. After all, you might think the last thing you need right now is
a liquidator.

These guys, however, are experts at this. Much more so than your regular
accountant. If they are called in by you they are on your side. They are required to
act in your best interests.

The more complex your business the more useful they are. Or if your record keeping
has been crap, by training and experience they can build a clear picture of the
business, its present situation and the chances of survival. If continued operation is
not advisable they will chart the best possible future course.

Depending on the jurisdiction you are working in there will be a range of possible
options such as statutory management, an arrangement with creditors, through to
the final rite of bankruptcy or liquidation.

Better to have them on your side of the desk than the other.

9: Share the problem with your staff.

If you have a sound working relationship with your team you can sit down and talk
about the problems. You’ll be amazed at what they will come up with by way of
suggestions.

Depending on your business you may not include all the staff members, but certainly
your senior managers need to be aware of the situation and to be reassured that you
are getting on top of the problem.

When it comes to ways to save money, however, get everyone involved. You might
find that even the lowest member on the staff totem pole has been aware of waste
but never felt able to raise it with anyone. In fact, very often it’s the guys at the
coalface that know better than anyone in the executive offices how waste can be
trimmed.