Dear Aunty B,
We are a young business and will make a loss this year. I can’t see our situation changing in the short term given the economic conditions.
I have developed a plan that might turn things around, but I can’t stand here hand on heart and say it will.
My question is should I put the company in voluntary administration now or wait and hope? Sometimes I feel like it is the end of the world for us, but I know entrepreneurs must be resilient. Where is the line between being strong and resilient or being unrealistic and hanging on too long?
Scared and worried,
Dear Scared and worried,
When you solve that one, give us all a hoy because the world’s entrepreneurs would like an answer to that. Knowing when to quit is an important part of business. But so is knowing how to duck and weave and hold your nerve when things get tough.
Unfortunately, the knowledge – and your access to networks to help you survive – increase as you get older. Can you bring in some grey hair with industry experience who can look at your plan and assess your chances? Are there any short term wins you can pursue to keep the business going while you finesse your plan and gain more confidence that it will work?
The other thing you must do is call your accountants and thoroughly assess your financial position. I suspect you don’t have all the facts at your fingertips such as cashflows and analysis, profit and loss and balance sheet. Once you analyse the facts the decision is often made by the numbers.
Your Aunty B.
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