While many are talking about growth and expansion this year, there’s also a silent danger lurking in the shadows: insolvency.
Richard Bundock almost went insolvent in 2013 – and he wants to make sure other agency leaders don’t find themselves in the same position.
“I got into real trouble. We even owed money to our accountants,” says the group CEO of Cohaesus. “I just remember being so stressed and wanting it all to go away.”
Richard sought advice from an insolvency practitioner but instead decided to take action into his own hands to successfully turn his business around. In 2020, Cohaesus became a group and has since gone on to help other agencies move through and past insolvency.
For Kevin Pritchard, a business rescue specialist, it’s about business turnaround rather than business demise.
“Insolvency practitioners will only be interested in the position of creditors,” he explains. “They’re not going to be interested in helping a director secure their future. Their job is, as an undertaker, to put the business to bed.”
There are several things agency leaders can do to move through insolvency – without sacrificing their business or their own finances.
Overcoming the personal embarrassment of insolvency and asking for help. This is the first step to avoiding reckless and unrecoverable decisions.
Knowing where to go to ask for the right help. This goes beyond just an insolvency practitioner who works in the interests of the company, rather than the individual.
Figuring out how to turn your business around. Look at all your options, whether that’s a more creative cash flow solution, merging or investment.
If you’re concerned about insolvency, or you want to know what red flags to look out for down the line to avoid it altogether, join Richard and Kevin to candidly talk it through.