Company Turnaround and Renewal
Insight Associates turnaround, rescue and recovery service provides non-judgemental, proactive guidance and support to stabilise distressed businesses, avoid insolvency and give them the opportunity to flourish. Insight’s intervention prevents re-occurrence of previous problems and establishes a solid platform for successful turnarounds, business recovery and continued growth.
If you have any particular questions or are concerned that your business might be failing please call for a confidential chat on Tel: 0800 180 4265
Insolvency Isn’t the Only Option
Failing businesses can be saved with appropriate advice and action.
A viable business may be closed down due to unforeseen events, which with the right help, could have a strong future.
With the early introduction of careful financial management, problems can be ‘ring fenced’ to give a firm foundation to the future of the business.
Failing and Distressed Business Early Warning Signs
There are many signs of a distressed business and below are a few to look out for. Singularly these may not be a cause for concern but when several are experienced together the stresses on the business and the staff therein will soon show:
- Cash Flow Problems
- Bad Relationship with Creditors
- Difficulty Obtaining Credit
- Increased Borrowing
- Declining Profits
- Inadequate Working Capital
- High stress levels on Directors and Employees
Common Reasons for Business Failure
Over 100,000 businesses fail each year in the UK alone and a disproportionate number of these are through inadequate financial management.
Common reasons for failure include:
- Poor Financial Management
- Poor Administration Procedures causing expensive errors
- Unforeseen events such as bad debt
- Inability to respond to changing markets such as poor sales and greater competition
- Delayed decisions caused by Inappropriate or Inadequate Financial Information
- Insufficient in-house skills.
Benefits of Early Intervention
Quite simply, the most basic and obvious benefit from early Financial Management intervention in a failing business is that it will survive rather than fail!
Directors do not set out to run a distressed or insolvent company so often have no experience or knowledge on how to deal with the situations that arise.
Early financial management intervention from an experienced turnaround and rescue provider such as Insight Associates will benefit your business in many ways including:
- Stability of Cash Flow
- Increased Profitability
- Reduced Stress on Business Owner and Employees
- Compliance of Director Responsibilities
- Resolving underlying problems to avoid re-occurrence
- Outside perspective and experience
- Timely management information for good decision making
- Full Turnaround, Rescue and Recovery
Many people speak of the “decline curve” when looking at failing businesses …
This chart shows how over time the directors lose control and events are dictated by others. The earlier in the curve that outside help is sought, the more palatable the solution. Remember directors do not set out to run distressed or insolvent companies, sooften have no experience or knowledge of how to deal with the situations that arise.
Don’t Bury Your Head In the Sand
As a Director or Business Owner it’s important to remember that you are not alone.
Many businesses become distressed through no fault of their own. Insight Associates are non-judgemental and are there to help you and your business succeed.
We have experienced numerous distressed business scenarios over 20 years and are there to guide and support you. Our founder and Director, Garry Mumford, is a Director of the Turnaround Management Association (UK).
One of the more immediate effects of our involvement that you will notice is that we act as a ‘buffer’ between you and the day to day distressed financial situations that arise. This provides you with much needed space to concentrate on strategic development and ways to strengthen and grow your business.
Going forward you will receive timely and accurate financial data and expertise to support your management decisions.
Every week, Garry Mumford of Insight Associates chats to Mark at the Business Hub – listen to the podcasts here.