Any company director or CEO will be aware of the recent struggles both financially and operationally within businesses due to the recent collapse of the economy and the reluctance of banks’ lending. Small businesses are feeling the pinch more than ever as sales, leads and new clients are simply failing to cover the huge deficit of outstanding debts. Most of this debt is due to contracts and deals that were made before the recession hit, meaning many directors are being punished unfairly.
Whilst a winding up petition is not high up on the list of concerns, they can be devastating and avoiding them isn’t as hard as people may first assume. Cost cutting initiatives are an ideal place to start when faced with financial problems. Company directors and CEOs should be making sure the following steps are being followed:
Redundancies, staff cuts and unpaid voluntary leave are all cost cutting incentives; however these should be the last call of action. Keeping staff happy and well looked after in the work place is of extreme importance, especially where productivity is concerned. Seeking financial and insolvency advice as early as possible is the best call of action.