When your business is facing financial distress, it can feel like everything is unravelling. But insolvency isn’t the end — with the right support, it can be the beginning of a structured recovery process.
At McAlister & Co, we believe that no business should have to face financial difficulty alone. That’s why we’ve outlined the seven stages of business recovery — a step-by-step process to guide you from crisis to comeback.
So, whether you’re struggling with debt, cash flow issues, or creditor pressure, understanding these stages can help you take control and begin to rebuild with confidence.
The Seven Stages of Business Recovery
Stage 1: Recognising There’s a Problem
The first stage of recovery is recognising that your business is in trouble. This might sound obvious, but it’s often the hardest step to take. Warning signs include mounting debts, missed tax payments, difficulty paying suppliers or staff, and growing pressure from creditors.
Many directors delay seeking help, hoping things will improve — but time is critical. The earlier you act, the more options you have. Admitting your business needs support is not a failure; it’s the first step towards a stronger future.
Stage 2: Seeking Professional Support
Once you’ve recognised the issue, the next step is to reach out to an insolvency practitioner. At McAlister & Co, we offer a free, confidential consultation to assess your situation without judgment or obligation.
We’ll listen carefully, review your finances, and start to map out the best path forward. Whether you're unsure about your next move or just need to talk things through, this early intervention could be the turning point that changes everything.
Stage 3: Building a Business Recovery Plan
With a clearer picture of your company’s financial health, we then create a bespoke business recovery plan. This plan outlines practical steps to help your business stabilise and recover.
It includes a detailed cash flow review, an assessment of creditor and HMRC liabilities, an overview of your fixed and variable costs, and options for restructuring or refinancing. This roadmap is tailored specifically to your needs and will form the foundation for all the decisions moving forward.
Stage 4: Cutting Costs and Streamlining Operations
One of the key pillars of recovery is cost control. Once we’ve reviewed your financials, we’ll identify areas where spending can be reduced without compromising operations.
This might involve renegotiating contracts, pausing non-essential outgoings, scaling back operations, or identifying ways to improve operational efficiency. Our aim is to ensure your business becomes leaner and more resilient, improving cash flow and strengthening your financial position.
Stage 5: Managing Cash Flow and HMRC Debt
Cash flow is the lifeblood of any business — and poor cash management is often a core reason companies fall into difficulty. At this stage, we focus on improving day-to-day cash flow through better invoicing, credit control, and financial planning.
If HMRC is one of your creditors, we may explore a Time to Pay (TTP) arrangement. This allows you to repay tax arrears over time, avoiding enforcement action and buying you breathing space. We’ll liaise directly with HMRC on your behalf to put forward a compelling case for support.
Stage 6: Implementing a Formal Rescue Procedure
If your company has deeper financial challenges, we may recommend a formal recovery procedure such as a company voluntary arrangement (CVA) or a pre-pack administration.
A CVA allows you to enter a legally binding agreement with your creditors to repay your debts over time, while continuing to trade. This not only protects your business from legal action but gives you the opportunity to restructure and recover. Learn more about how the CVA process works here.
Alternatively, a pre-pack administration allows you to sell your business and assets to a new company, often with the same directors. This is particularly useful when the underlying business is viable but burdened by historic debt.
Each option is handled with care and professionalism — and we’ll make sure you fully understand what’s involved, every step of the way.
Stage 7: Monitoring Progress and Moving Forward
The final stage of business recovery is ongoing monitoring and support. Recovery doesn’t end once a CVA is in place or cash flow improves — it’s a process that requires consistent focus.
We’ll help you put measures in place to track performance, manage future risks, and maintain clear financial visibility. Whether you need ongoing guidance, support with compliance, or simply someone to check in with, McAlister & Co remains by your side long after the crisis has passed.
Your Comeback Starts Here
Business recovery is never linear. There may be challenges along the way, but with expert advice and a clear plan, it is entirely possible to turn things around. At McAlister & Co, we’ve helped thousands of businesses navigate financial difficulty and emerge stronger.
If you’re worried about your company’s future, don’t wait until it’s too late. By understanding the seven stages of business recovery, you’ve already taken the first step.
Reach out to McAlister & Co today to book your free, confidential consultation. The sooner we talk, the more we can do.
Get in touch here.