In Show 079 – 3 Ways to Avoid Insolvency originally broadcast on Facebook Live on Monday 9 April 2018 we explore this interesting topic.
Today on Fast Fix Monday we discuss the three ways to avoid insolvency. Throughout April we are going to be discussing Phase 13: Winding up you business. That process can be forced on you if you become insolvent. To make sure that never happens here’s what you need to do,
1. Cash is king
You need to improve your cash flow and there is a few different ways you can do that. First, you can invoice your customers on time and regularly. You’d be amazed how many people get focused on the work and forget to bill their clients. Next is chasing debts. If you have people that owe you money chase them down. Don’t let them avoid paying you any further. Finally avoid over trading. Don’t take orders for things you don’t have the resources for.
2. Never ignore your creditors
If you’ve ever had a customer ignore an invoice you know it can be incredibly annoying. Don’t do the same thing for you creditor. Communication is key. If you have suppliers or bankers you owe money to, keep talking. Don’t stick your head in the sand.
3. Reduce your overhead
In any business you are going to have overhead. Those can be reduced very quickly and can save you a lot of money. Staff costs are a huge part of that. You can reduce lease costs as well.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.