Business Insolvencies The Current State of Company Liquidation in Australia
October 5, 2016
The Insolvency Experts on National TV
As an expert in Company Liquidation and Insolvency, Steve Kugel was invited on Channel 10 Australia and interviewed by Paul Henry.
The topic was avoiding Business Insolvency and Company Liquidation and Steve made some important points for business owners to consider. Most of the relevant points are available in Steve’s Free Ebook – The Small Business Survival Guide that can be downloaded free on this page.
With Company Liquidation again on the rise, Steve suggests all company directors consider the following to ensure their business will not be placed into liquidation.
- Businesses need to adapt and change to the current conditions in order to compete effectively. What worked til now may not work in the future.
- Keep clear books and records and review them regularly – operating a business without a clear understanding of the numbers (sales, expenses, break-even and cash flow etc.) is akin to driving a vehicle blindfolded.
- Produce a budget and then measure actual performance against it.
- Collect your receivable accounts in a timely fashion. Don’t be scared to ask to be paid for work done.
- Try to align receivables and payables. If you collect receivables in 90 days but are expected to pay creditors in 30 days, there is a gap that you alone will need to fund.
- Avoid overexposure to one client. Try to spread the risk by having a broader client base. Do not keep all your eggs in one basket
- Regularly review stock levels and types of stock held. Understand fast -v- slow moving stock and use that knowledge to stock both types at appropriate levels. Think of the recent failure of Dick Smith.
- Involve your accountants and business advisors on a regular basis – not just at tax time. They are specialists in the management of businesses and can help you identify areas of your business that can be improved.
The earlier you seek advice and help, the more options will be available to rectify a bad situation rather than simply placing your company into liquidation.
Recent Posts
