Business owners and managers should be aware of the following key signs that you might indicate help from a turnaround specialist is needed: Regular trading losses, declining cash balance, loss of a major trading contract, escalating costs, overdraft constantly over limit, arrears with VAT/PAYE/NI payments, declining sales and rising stock levels, customers taking longer to pay, new and more agile competitors, as well as threats from funders to reduce the facility with them.
These are red flags and the longer you ignore these, the more catastrophic the financial consequences could be. Stopping the decline with a well thought through plan or exiting the business before it is too late will enable management to have more options available to them to rebuild value with some value intact and hopefully preserve jobs.
It is unlikely that any management team will have the entire range of skills to help a company survive a crisis. Hence do not be afraid to buy in specialist skills as they will often more than pay for themselves. The survival price you pay will be small in comparison to the extreme of losing your once thriving business.
If these warning signs recur, take advice to determine whether there is any personal risk from continuing to trade, and whether you still have time to turn it around.
Request this service now if you are in difficulty, need turnaround, have reporting problems or need to exit the business.