When money runs out.
WHAT TO DO FIRST
Establish the actual position.
WHAT THAT MEANS
Cash available What is owed, and when What is owed to you What obligations are unavoidable
WHY FIRST
Decisions made without the numbers are wrong.
WHAT TO PRIORITISE
Anything carrying personal liability Anything that stops the business operating Staff wages Statutory deductions already taken
WHY DEDUCTIONS RANK HIGH
They are not your money, and failure carries personal consequences.
WHAT TO DO ABOUT CREDITORS
Contact them before missing payments.
WHAT TO PROPOSE
A realistic arrangement.
WHY REALISTIC
A second broken arrangement ends cooperation.
WHAT TO DO ABOUT MONEY OWED TO YOU
Chase it, immediately and persistently.
WHAT TO CUT
Discretionary costs, decisively.
WHAT TO BE CAREFUL WITH
Cutting things that generate revenue.
WHAT TO AVOID
Borrowing at high cost to survive Concealing the position from those affected Continuing to trade while insolvent
WHAT TO SEEK
Advice, from an accountant and where appropriate a practitioner.
WHY EARLY
Options narrow rapidly.
WHAT TO PROTECT PERSONALLY
Your household's essential costs Your health
WHY THOSE
Neither recovers easily, and decisions made while exhausted are poor.
WHAT TO RECOGNISE
That closing a business properly is sometimes the correct decision.
