In today’s globalised commercial environment, cash is king. From the CEO of a company all the way down to the delivery drivers and menial workers, the pressure from investors and customers seems to impact the entire hierarchy regardless of the company’s specific industry or niche. Thus, the importance of protecting your bottom line cannot be understated, especially if your company happens to be struggling with debt management and a stagnating revenue stream.
The modern techniques used to streamline today’s workplace often focus on functionality. Whether it be ordering new computers or altering the furniture arrangement periodically, companies tend to stress the significance of productivity and comfort within the office. However, many of these quick-fix solutions fail to address the crux of what’s likely slowing your business down, especially if your operations have already been deteriorating for a few years. While updating your technological capabilities and purchasing ergonomic chairs might provide some temporary pacification for your employees, a struggling business needs much more than some fresh furniture or a new online infrastructure; it needs a comprehensive restructuring.
A Professional Assessment
In the modern age of business, the most reputable consulting firms are essentially a one-stop shop for all of your innovation needs. As these renowned firms work with international corporations, regulatory agencies, volunteer bodies, small businesses, and even exclusive online suppliers, they represent the pinnacle of versatile business acumen. For the most part, these corporate professionals will create a tight-knit relationship with your organisation in an effort to scope out every nook and cranny of your business that might be in need of an update or restructure. However, it’s important to draw a distinction between standard consulting services and the concept of voluntary administration, especially if you’re trying to avoid insolvency, liquidation, and/or bankruptcy.
Saving Your Business
Whereas standard consulting firms usually focus on team building, leadership, and financial nuances, it’s important to note that administration consultants take an entirely different approach. The concept of voluntary administration revolves around enacting short-term measures to freeze the company’s current financial position in order to assess and evaluate the firm’s immediate future. An independent business maven, also referred to as an administrator, will essentially take full control of the company in an effort to gauge its supplier relations, general liabilities, cash flow status, and creditor associations. From the onset, the goal is to essentially create a longer operational runway by trimming non-essential expenses and debts, which will allow the administrator to compare and contrast the available courses of action that might be able to save the business.
If it isn’t possible to salvage the company or any of the core operations, the administrator’s focus shifts to ensuring that all creditors and shareholders receive fair compensation above and beyond what they would receive in an outright liquidation. In this case, the decision to administer the affairs of a company will rely entirely on whether continuing operations hurts the firm’s solvency moving forward.
Rather than filing for bankruptcy or diving headfirst into the generic liquidation process, it’s far wiser to establish a relationship with a reputable administration consultant. With a trustworthy corporate expert by your side, you’ll be able to maximise your chances of continuing operations or, if that isn’t possible, you can rest assured knowing that your creditors and shareholders will be compensated generously in the event of a shutdown or sale of the company.