It’s been a difficult couple of years for UK businesses, so don’t miss this expert business insolvency advice for prepare your business for what’s ahead.
There’s no denying that times are tough. With economies ailing, cost of living increasing, and financial challenges looming, it’s never been more important to be proactive to ensure your business weathers the storm.
Luckily, here at McAlister & Co, we are business turnaround specialists – so, without further ado, read on for expert business insolvency advice and discover our top tips on how to get your business fighting fit for 2025 and beyond...
Business insolvency advice: six proactive steps to get your business ahead
1. Reflect on the year
The first step towards getting your business ready for the future is to look at previous years so you can get a clear picture of where you are.
Look closely at your accounts and carefully review your balance sheets. You should also compare your cash flow statements and profit and loss totals to both last year’s numbers as well as the year before.
This way, you can get a good idea about where you stand, and how much things have potentially improved since this time last year.
It’s important to highlight the differences that could be affecting your profit and loss. By having a clear picture of your current financial situation, you can then begin to put a plan together for 2025 and beyond.
2. Build a plan for the coming year
Now you know where you stand, it’s time to put together a business plan for the coming year. Look closely at your business strengths and weaknesses and identify any areas for potential change so that you can put together a plan.
What is your basic operating budget? The minimum finance you need? Where could you cut costs? Answer these questions and review your strategies accordingly.
If you need any extra help, business turnaround specialists including licensed insolvency practitioners will be able to help you look at every aspect of your business and put together a thorough plan.
3. Create a cash flow forecast
So, you’ve looked at what happened last year and have put together a plan for the coming year. Next up, then, it’s time to create a cash flow forecast ready for the year ahead.
Make sure you’re as realistic as possible – it’s about preventing shortfalls rather than putting unachievable numbers down to impress.
Your cash flow forecast should enable you to estimate the amount of money you expect to come in and out of your business and when, so you know in advance how much cash you will need in the coming months.
Planning ahead means that you can make the necessary precautions to make sure you’re prepared for any tricky times ahead – so it’s definitely a task worth doing!
4. Boost your cash flow
Forecast complete, now it’s time to see if there are any ways you could bring in some more funds. Positive cash flow is absolutely key to rebuilding your business, especially in a time that is fraught with economic uncertainty.
Start by auditing your stock to see if you can free any up to bring in more funds, and be sure to cut as many costs as possible. Question each expense and liaise with suppliers where possible to negotiate better deals for the coming year.
You should also set up a daily cash flow control if you haven’t already to keep track of all expenses so you can stay in complete control. Basically, you need to be as stringent as possible when it comes to managing your cash flow – after all, every little helps!
5. Think about additional finance
Even with thorough forecasting and stringent cash flow control, you might still find that you require some extra finance to get your business fighting fit.
One potential option is invoice factoring and invoice discounting. This can help to provide a regular cash injection each month by lending money against the amounts raised on your invoices, whilst alternative options include asset-based funding, peer-to-peer funding and crowdfunding.
For further ideas, don’t miss our blog on the different finance options available.
6. Seek expert business insolvency advice
Reach out to business turnaround specialists for expert business insolvency advice to ensure your business thrives in the new year.
At McAlister & Co, there’s nothing we don’t know about business rescue and recovery, and we can advise on a number of bespoke solutions to turn around your business and help you prepare for the new year.
It’s important to be proactive when it comes to your business finances. So, the sooner you take action, the better. For clear, strategic business insolvency advice from our friendly and knowledgeable team, contact McAlister & Co today.
