Business rescue advice

[Kaymarie83]

Hi

We are a small family business which is a Ltd company. We've had the business for 20 years now, and we are based online and local events but sadly this year has been dreadful for sales and I think it's down to the cost of living. We have got to the point now where we are skint and struggling. We've been receiving advice from our accountant and he mentioned a business rescue company which will allow us to keep our assets etc. Has anyone had experience with this sort of thing? We enquired to one company, the fee was 6k!! If we had a spare 6k we wouldn't be in this situation.
We are really trying to not go down the liquidation route as we were told we wouldn't be able to continue trading. I honestly don't know what else to do. We are still getting sales but not like what we used to get, which is what caused a cash flow problem. Any help and advise is much appreciated.

 

[Shopclicks]

Have you identified the cause of your dwindling sales? Is it a physical product you sell?

 

[Frank Wessely]

Hi @Kaymarie83

The company you mention is probably National Business Rescue. If it is I suggest that you take that no further because their offering typically creates more problems for Directors than those being faced beforehand.

It would be necessary for you to provide much more detailed information regarding the business and its finances before being able to outline the various options for you to consider.

I am happy to have an exploratory call with you at no charge to discuss this further if that would help.

It is good that you are seeking assistance. Many Directors I speak to have often stuck their heads in the sand rather than face their business problems.

Thanks.

 

[Paul Kelly ICHYB]

We've been receiving advice from our accountant

What sort of advice? Are they sales & marketing experts?

 

[Kaymarie83]

Have you identified the cause of your dwindling sales? Is it a physical product you sell?

Yes it is a physical product. It is just down to lack of sales, we've had days with no sales at all, this had never happened before l.

 

[boxlot]

It's possible that your Google rankings dropped for some reason if you're only selling online, and this may have affected your sales. I've experienced this a few times over the years. Have you considered trying eBay, for example? It could help generate sales quickly.

 

[fisicx]

Yes it is a physical product. It is just down to lack of sales, we've had days with no sales at all, this had never happened before l.

Maybe you just need to review your marketing. When was the last time you had a full analysis of the business by a sales and marketing expert?

 

[Kaymarie83]

It's possible that your Google rankings dropped for some reason if you're only selling online, and this may have affected your sales. I've experienced this a few times over the years. Have you considered trying eBay, for example? It could help generate sales quickly.

This is something we looked into, we've not had a problem in 20 years like this. We do sell a few things on ebay, we do events so it's not just our website we rely on but sales in general have been very slow this year and many others have said the same.

 

[AlanJ1]

sales in general have been very slow this year and many others have said the same.

Unless you are asking someone selling the exact same product, this is like how long is a piece of string question.

Markets very rarely "dissapear" especially ones that have been around 20 years. I would seriously look at your marketing.

 

[Shopclicks]

This is something we looked into, we've not had a problem in 20 years like this. We do sell a few things on ebay, we do events so it's not just our website we rely on but sales in general have been very slow this year and many others have said the same.

How active are you on Social Media? Which platforms do you use (Facebook, Instagram, etc.) How often do you post and what do you post?

 

[Kaymarie83]

Maybe you just need to review your marketing. When was the last time you had a full analysis of the business by a sales and marketing expert?

 

[UK Contractor Accountant]

We are really trying to not go down the liquidation route as we were told we wouldn't be able to continue trading

who told you that?

Google pre-pack liquidations and do some research

 

[Calvin Crane]

You should look at the marketing angle as others have said. There are low cost things you can do such as leaflets and cold calling if you are B2C. You have a product you don't want to share the details of so that suggests it is easily copied? Amazon is a bigger marketplace than Ebay but Ebay is easier to get a product listed. Do you have competitors on there?
Social media works well for events type of business advertising on the cheap. Approach some local facebook groups and ask if you can post a promotional post. I created a group for my region which is slowly growing organically and now has 2k visitors. Not so many but lots of local business list for free so long as they don't spam it! Then you can do PPC which does work if done right. It's costly but if you know your margins and conversion rate can work fast. Good luck. I think it's been a tough time for certain sectors. I am disappointed our gov chose not to keep the renewable energy we make here at the previous rate (its pinned to gas price) that was 40% of our energy I digress.

 

[Chris Ashdown]

How much have you used Google Analytics to study how your site is performing and what compediters you have and how they perform

Have you changed your site recently

How long has the decline been, weeks, months or years, Most likely your accountant does not understand online selling they study accountancy, so maybe asking on here for someone to look at your site with fresh eyes may be a better use of what little money you have left

 

[Paul Kelly ICHYB]

So, rather than work out what the problem is and correct & improve, it's straight to 'lets close the business'.

Maybe you just don't want to carry on?

Anyway, you've not really done eBay, so I guess Amazon was never on the list? Let me guess again - too expensive?

You mention local events - what about regional or national events.

Social media exposure and their stores?

If you really have given up, don't waste your time with these, however, come on here and getting good advice from several seasoned business people indicates you have a long way to before you should consider closure.

Have you spoke to your local council to see if they offer support and advice?

 

[WaveJumper]

What sort of advice? Are they sales & marketing experts?

Bang on I would be worried (very) if my accountant was offering me sales & marketing advice

 

[Paul Kelly ICHYB]

Bang on I would be worried (very) if my accountant was offering me sales & marketing advice

I have no issue when accountants start calling themselves business advisers, but only if they have experience & understanding, which most of them do not.

On a side note, this is a big gap in accountants portfolio opportunities - if they were to offer a more complete service, using experts, they could grow their practices further and make a better offering to clients.

 

[Chris Ashdown]

How much have you used Google Analytics to study how your site is performing and what compediters you have and how they perform

Have you changed your site recently

How long has the decline been, weeks, months or years, Most likely your accountant does not understand online selling they study accountancy, so maybe asking on here for someone to look at your site with fresh eyes may be a better use of what little money you have left

 

[Chris Ashdown]

What did i say that upset someone

 

[Lisa Thomas]

Hello

If the company is insolvent but you are confident you can continue trading profitably, then a Company Voluntary Arrangement ("CVA") might be appropriate.

What was the fee of £6k quoted for - was this for a liquidation? Did they explain this is usually covered by the company's assets?

 

[Mark T Jones]

It's sounds disturbingly like your accountant has recommended someone like National Company Rescue, or one of the many clones.

Whilst not illegal (yet) you'd certainly question the ethics and it won't guarantee to get you off the hook as cleanly as they imply. (It depresses me that accountants recommend such marginal practice)

I haven't read the whole thread, but picked up the critical gist -- are you ready to walk away, or do you want to explore recovery options?

What creditors do you have? How hard are they pushing?

 

[Craiglincs]

My accountant has his own company and has to do his own sales and marketing. I thought most accountants did?

 

[Chris Ashdown]

Sales and Marketing skills can vary tremendously between companies, a car company would have different approached and needs over say a newspaper company, and Whilst they may need a accountant, do they need your company over others

 

[fisicx]

My accountant has his own company and has to do his own sales and marketing.

Why? Surely they can pay someone with the necessary expertise to do it for them in the same way they expect people to pay an accountant.