The last 6 weeks has seen an increase in business seeking advice as a result of a down turn in sales of their product or service.
However, when examining more closely what has transpired it is readily apparent that the result we are seeing today are the direct outcome of the lack of actions that should have been taken place 12-24 months ago. There has been a failure to implement sound advice, good strategic decisions or worse a failure to understand the financial reports that were making the lack of business performance very, very clear.
The number #1 issue in many cases is that the financial position of the business has deteriorated to the point of no return and little can be done to rectify the situation when no further funding is available to trade out of the situation.
This then brings a host of new issues that small business owners and company directors should be aware of but often are not, of their responsibilities as a director particularly in regard to insolvent trading, Div 7 loans [company to director] and liabilities of directors in regards to PAYG withholding payments and soon to be Super payments.
If this is starting to resonate with you about your business or you know of a small business heading into a similar situation - the solution is take advice fast!
Comments
as you say, most business owners do not know the key fundamentals in running successful, profitable businesses. to any business owner struggling with what to do, get some help but be wary of all the experts out there. key questions to ask your advisor... what
small businesses have you run before, how profitable were they, what is your current ratio, how do you recruit good staff.