When ending is the right decision.
WHY IT DESERVES SERIOUS CONSIDERATION
Continuing a failing business consumes money, health and time that could go elsewhere.
WHAT SIGNS INDICATE IT
Losses that are structural rather than temporary No route to profitability Debts growing Funding exhausted and unavailable The market having moved The owner unable to continue
WHAT TO ESTABLISH
Whether the problem is fixable.
WHAT TO ASSESS HONESTLY
What would have to change Whether it can change What it would cost Whether you have the resources and the will
WHAT TO AVOID
Continuing because stopping feels like failure Borrowing to postpone the decision Concealing the position
WHY BORROWING TO POSTPONE IS THE WORST OPTION
It converts a business failure into a personal one.
WHAT TO ESTABLISH EARLY
Whether the business is insolvent.
WHAT INSOLVENCY MEANS
Unable to pay debts as they fall due, or liabilities exceeding assets.
WHY IT MATTERS ENORMOUSLY
Continuing to trade while insolvent carries personal consequences for directors.
WHAT TO DO
Take advice immediately.
WHY IMMEDIATELY
Options narrow rapidly and exposure increases.
WHAT CLOSING IN AN ORDERLY WAY PROVIDES
Better outcomes for creditors Less personal exposure Relationships preserved Assets realised properly
WHAT TO RECOGNISE
That closing well is a legitimate and sometimes courageous decision.
WHAT TO CONSIDER FIRST
Whether the business could be sold, even cheaply, rather than closed.
