Voluntary Administration is simply a mechanism that gives directors and secured creditors a chance to save an insolvent company. If you want to rescue your business, then Voluntary Administration may be an appropriate option for you.
While there are many turnaround options available, Voluntary Administration can be an effective tool to enact a comprehensive turnaround and maximise the viability of the ongoing business.
Here are 5 ingredients for a successful business turnaround:
- Recognise change is a part of business life: Acknowledge that when things are not working, something must change and the quicker the better: We can’t always get things right the first time, sometimes just a tweak here and a tweak there to the business model makes all the difference.
- Acknowledge a business turnaround requires trust: Stakeholders must be on board for the journey. One of the best ways to keep stakeholders on board and work collaboratively is to communicate. Being open and honest creates empathy and empathy builds trust.
- Focus on the underlying business value: A business turnaround that can focus on increasing the underlying value over the long term enables the true value of the company to be sustained, reinforced and grown.
- Plan the Plan: The output of any business turnaround process is an executable plan to deliver the identified courses of action. Engaging a professional advisor like Olvera, with a track record in delivering successful outcomes is a key element to a successful business turnaround.
- Don’t wait until it’s too late: The longer you wait to bring in the administrator, the more constrained their ability to fix your business.