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I doubt any business owner is totally ready for the pressure that being in charge can bring. It’s hard being the person at the top, particularly when it comes to having money issues. Every company is unique in its own way but if there is one thing they have in common, it is the sleepless nights that come along with the realisation that you may be in trouble financially. Whether you are struggling with HMRC, unpaid debts, cashflow, wanting to close your business voluntarily, or one of the many other reasons you may need help, taking the first step and calling an Insolvency Practitioner is the best idea. But it is an understandably difficult step to take. You are potentially starting down a life changing road, so naturally there is going to be a lot to worry about, but there may be less than you think and worrying doesn’t really help.
The first question most of our clients want answering is whether they should call us in the first place.
The answer to whether you should contact us is simple. If you are reading this because you think you may need the services of an Insolvency Practitioner, then you should contact us. You are clearly worried enough to be thinking about insolvency so you definitely must do something. Remember, we are only of use to you if you need us. Insolvency advice is not a ‘saleable’ item like buying a tin of beans because it is only relevant when and if you need it. So, when you call us, before we do anything else, we will establish if you need us. If you don’t need us then great news, you got a free session that told you no longer need to worry. If you do need us, then what happens next is not as bleak as you would think. Here is an overview of how it works.
Firstly, let’s clear up a few misconceptions so that we are all talking the same language. When you contact us, unless you tell us otherwise, our first response is to help keep you in business. The bottom line is that we are not here to look for a way to close you down. A number of businesses that come to us can be rescued and our first approach is always to look for ways to keep you trading. That isn’t always possible, unfortunately, but closure is always a last resort.
Secondly, sometimes there is a little bit of confusion over terminology. We will always explain everything in plain English, but a few key words are good to know in advance. To simplify things down:
· Bankruptcy is only applicable to individuals. Sole traders for example.
· Insolvency is when you are unable to pay your debts. So, it is a global term usually used to describe the situation where your debts exceed your ability to pay them.
· Liquidation is where a company’s assets are used to pay off its debt(s).
· Administration is where an Insolvency Practitioner is appointed to try to rescue the business or chose the best course of action for a business which is insolvent.
When you speak to us on your free consultation, we will start by assessing your current situation. Depending on which of the above applies to you, (assuming they apply at all) we will work with you to decide the best course of action and your initial steps. Ideally they will be towards recovery.
The consultation will take place in a convenient way and location for you. Some of our clients prefer to come to see us or discuss on a private telephone call and others prefer us to visit them to get a feel for their business.
What is the first meeting really about?
This first part of the process is not about telling you what to do or criticising you.
· It is about collaboration and mutual understanding.
· It is about offering you the best option available.
· It is about working ‘with’ you.
· It is about building a working relationship help us achieve our goals.
· And, most of all it, is about practical solutions.
We will need to know about your business, why you think you need us, what your situation is overall and some other top-level information. Honesty is important of course but we are not here to judge. We are here to help.
There is a link at the end of this article to a video on our website where Gavin takes you through what happens when we first meet.
No business owner wants to face the prospect of having to put up the shutters and call it a day. Why would they? For most of us our business is our baby. It is something we have worked on, and usually in, with all our heart. Picking up the phone to call an Insolvency Practitioner is clearly going to be hard and we understand that. However, if you are in the position where you think your business may be facing difficulties, making the connection with us as early as possible will certainly be a more positive action than lying awake at night worrying.
So, our advice is, and will always be, ‘get in touch’. Call us, email us or however you feel most comfortable, but make that initial contact. Whatever the outcome of our first consultation, you will have a better idea of where you stand and most likely the start of a rescue plan - and that alone will relieve a lot of the stress and anguish.
Click here to see Gavin discussing what happens at your first meeting
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