Business Restructure | Answers to Your Frequently Asked Questions
Business restructure is a difficult task for most business leaders to undertake. Here are answers to many business restructure questions.
When Should I take company bankruptcy?
You should only take bankruptcy if your firm has no cash and exhausted
all choices. Too often, business leaders take bankruptcy at the beginning
of the restructuring and not at the end of it. This is a mistake. Other
choices like debt restructuring make more sense and are a lot less costly.
Bankruptcy can cost a fortune and usually your firm cannot survive the
filing.
How do I get control of my debt?
You must workout payment plans and settlements with your creditors. This
can be a difficult, stressful job. But you must renegotiate your current
debt. This is a requirement of every company turnaround I have worked.
What are clear signs that my firm is in trouble?
There are many. The most common are 1) You can’t pay your bills, 2)
You are late paying your bills, 3) Good employees are leaving, 4) Good clients
are leaving, 5) Your banker is starting to snoop around.
Do I need a turnaround consultant?
Hiring a turnaround consultant can be a good investment. Typically, they
want up-front payment, so you do need to have some cash. A good turnaround
consultant can save your business and restore the value of your equity.
Frankly, you don’t have much to lose. If the consultant helps you,
you win. If the consultant can’t save the firm, you were going to
be out of business anyway.
Where do I find a turnaround consultant?
Your board and trusted colleagues can help you find a professional. Your banker
knows turnaround consultants, but remember, that they will want to recommend
THEIR GUY. If you hire the banker’s recommendation, be sure your banker
will know what the consultant is finding before you do.
What publications do you recommend?
The Insider Secrets to Saving Your Business: The Step-by-Step Turnaround
Guide is a good source of information. This is a comprehensive 2-volume
business
restructure manual that you should have if you want to fix
your firm.
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