It is unfortunate that sometimes businesses become insolvent and fail in spite of the owner’s best efforts. It could be that the business was located in the wrong area, or there was an economic downturn. There are many other reasons for business failure; sometimes it is simply that the owner did not seek the advice he or she needed from a professional who could have helped before it was too late. If your business seems to be having financial difficulties it’s important to get help as quickly as possible. Sometimes it just takes a few tweaks here and there for a business to improve substantially.
While a business advisor can often help, many business owners bury their head in the sand instead of consulting one, because they don’t know how to deal with the situation and just hope it will go away. This will rarely happen and the next thing they know is they’ve gone bankrupt. Our business lawyers can give you a lot of good advice to prevent this from happening, so long as you act before it’s too late. We will be happy to listen to your concerns, give you the advice you seek and implement it for you if you think – or know – your business is not doing as well as it should.
Sometimes a reconstruction is necessary for you to carry on business. It can free up needed finances and help you manage debts so you can carry on with your new and revised business plan and gradually get your business out of difficulties. There are many ways in which this can be done, but you need to consult with legal professionals first to ensure it is the right step for you.
Generally speaking it is best to avoid becoming bankrupt because it limits what you can do in the future. For instance, you would not be able to start up another business any time soon. Besides, you assets would need to be sold to pay the bills, leaving you with nothing to start over.
At Lawyers Perth we are highly experienced in this aspect of business and will be able to guide and advise you on many aspects of restructuring and running your business in a way that will help to achieve your goals. We understand that you’ve put a great deal of effort into the business and that it may not be your fault that it seems to be foundering.
In fact we don’t waste time laying blame; we just work out what went wrong and show you how to make it right again. With our help you have a much better chance of getting your business up and running again. No one likes to see their dream fall to pieces so the time to act is now.
Part of the reconstruction process may include such things as identifying unneeded assets that can be sold off to generate much needed cash; finding ways to reduce costs, for instance by outsourcing, and negotiating with creditors in order to instigate instalment arrangements. It these things don’t bring about the needed change you may need to sell the company at market price, to a new one that is controlled by you. After that, a liquidator will be appointed and he will distribute the sale proceeds between the creditors.