It is really hard work running a small business from start up. You have ploughed all your money in, maybe there are months when you haven't been able to take your own wages. You are responsible for the finances or your employees who rely on you. Cash is always tight and sometimes you wonder whether it would be better just taking a wage and letting someone else run all the risk.

It can be hard to admit it, but you need to recognise when your business is in trouble and that you have to stop putting in your own cash. If you are insolvent you need to take steps to cease trading or you could be responsible for wrongful trading have and to personally pay for company losses to creditors.

You are up to your overdraft limit again

You need to make a payment for supplies, but you have been bouncing along the overdraft ceiling for a few months now. The bank has started to return a few cheques and have even mentioned the need to reduce the overdraft. What do you do? Firstly do not be tempted to get out your own cheque book or Visa card and make payment. You will never get the money back. Every week we see Directors who prop up their businesses with personal cash, 99% of the time it is good money after bad.

The bank won't lend any more

Whatever we think of banks, there are commercial animals, and yes they have been bailed out by us, and yes they are slow in lending, but they no a bad business decision when they see one, and if you have been unable to show any decent levels of profit they will not fund you. Profit is key without your are going only one way.

Cash flow is non existent

Sell goods and services and get paid for them or you are dead in the water. There is no point in buying in stock which then sits on the shelf. Only buy what you need, turn it over quickly, and get paid for it. There is plenty of advice here and elsewhere about how to get paid quickly. Cash is king – how many times have you heard that. You can make all the sales you want but without getting paid for them, it is pointless.

How to get your accounts paid

You are no longer enjoying the business

If you have reached this stage, you will have probably been aware for some time that the business is in trouble. Probably you are taking these worries back home, and this may be affecting marriage or relationships, which causes a downward spiral of depression. Get advice and maybe save a business and a relationship.

The management cannot agree

Often symptomatic of a business going the wrong way. The stresses of running a business and making sure everybody gets paid can affect even the strongest relationships. I have seen friendships destroyed by a business in trouble. As soon as you start to fall out, agree on one thing and that is to take advice.

Loss of a major customer

We see it time and again; small businesses reliant on a small group of suppliers or creditors, who then struggle when one of these themselves becomes insolvent or moves business away. It is ten times harder to get new business than to keep an existing client. If you find yourself too exposed, make an urgent shift to expand your base before it becomes too late/

Disgruntled employees

There can be nothing worse or unsettling in a small workplace that a disaffected or disgruntled employee. Try to resolve the issues, or if you cannot, then take steps to remove that person. If left to fester, it can lead to more unhappiness surfacing, which will affect productivity and absenteeism.

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