One thing that I have realized over the last couple of years is that every business can be sucker-punched and no matter how well you run it, things can and will go wrong.
After what’s happened, there is no shame in saying “I’m struggling and I don’t know what to do”
Lots of UK businesses are running out of cash and have had to take on additional debt be it a Bounce Back Loan or a CBILS. Business owners are also worried about winding-up petitions, bailiffs, HMRC and other bills going left unpaid. So many businesses have not yet bounced back!
Here are some things for you to look out for:
- Your business is running out of cash.
- You are having to inject personal funds into the business.
- You have no idea how you’re going to pay back your Bounce Back Loan or CBILS.
- You have built up HMRC arrears.
- You can’t pay your supplier bills on time.
- Your customers aren’t paying you on time.
- You’re having to rob Peter to pay Paul every week.
So above I’ve listed some of the warning signs that your company may not survive, if you can identify some or all of them in your business this is what I suggest you do.
Don’t ignore them!
I’ve done it myself where I buried my head in the sand hoping that the problem would disappear. One of my biggest problems was that I had such an optimistic outlook. The problem with us positive thinkers sometimes is we can be a little bit detached from reality sometimes. UK businesses have been kept alive on life support for nearly 12 months, in the not too distant future we are going to be taken off and you need a plan to survive with the Government propping you up. The sooner that you get advice when your business starts to struggle the more options you will have available.
What do your numbers look like?
To make informed decisions on your business’s future it’s critical that you understand what your financials look like. I’m amazed at how many directors genuinely don’t know how their business is performing month to month. What is the forecast for your business’s financials over the next 3, 6, 12 months?