Insolvency is understandably a dirty word when it comes to business. Many managing directors would sooner bury their heads in the sand than acknowledge the problem. Often, this is too late.
At NTF Financial Solutions, Directors Nick Morgan , James Kaye and Jonathan Gribble, are changing the face of insolvency practitioners. They demonstrate a proven track record of turning businesses around, from improving cash flow to helping out in the wider community.
“There are many warning signs that you may need help, beyond cash flow issues”
Often, Nick assures that business owners just need to re-evaluate their company direction, but it helps to start this process early.
Besides cash flow, the NTF team advises business owners to watch out for the less obvious warning signs.
1. Losing Customers
Customers leave for all sorts of reasons, but if they’re a key contract, it’s time to consider a long-term plan.
“Many business owners are positive and say they can fill the gap. It’s about knowing when to realise something bigger needs to be done,” says James.
2. Problems with Contractors
“Every industry is different,” says Jonathan, “but a key warning sign comes from contractors and suppliers.”
“If you are changing payment terms and struggling to pay key contacts, this could be a sign of things to come.”
3. Unhappy Staff
“The general vibe of your employees is a clear warning sign,” says James.
“If your teams are stressed out and under-performing, this may be a sign that they’re taking too much on and need more support”
“Don’t forget to look at yourself too,” says Jonathan. “If you’re feeling more stressed, that’s a clear indicator.”
4. High Staff Turnover
“Periods of high staff turnover are often a sign that the tide is turning,” warns Nick.
Often it only takes one staff member to set off hordes of resignation letters.
This could be an indication of your reputation as an employer, or if other factors like redundancy are stressing out your staff, people may leave.
5. What’s Keeping You Awake?
As a business owner, you know better than anybody else when something isn’t right. Ask yourself: what’s keeping you up at night?
“Many directors know, in their own spirit, if something is not right with their business but carry on as if there’s no problem. Sleepless nights are a big factor”
What Should you do?
Thankfully, it’s not all doom and gloom.
“The sooner directors acknowledge a problem, the better chance they have of finding a solution,” advises James. “The team at NTF have more than 60 years’ combined experience in turning businesses around.”
This can be something as simple as selling off assets or restructuring, or seeking a formal insolvency solution.
“Our mission is to seek the most positive outcome possible,” concludes Nick. “With foresight and a proactive attitude, we work with companies to achieve this.”
Taking advice early keeps open the range of options available to you. Open up a discussion with NTF Financial Solutions by calling 01625 540744, or visit ntffs.co.uk.