Turnaround – How to spot the warning signs |

We all need a personal heath check every now and then, and businesses are no different.
Here are some of the warning signs for a business suffering a degree of distress.
Step 1 – Early warning signs
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• You're always short of cash
• Your bank are asking for more information
or an audit
• You have a plan, but it keeps changing
• You are constantly using all of your
bank facility and have no free headroom
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Step 2 – Things are getting worse
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• Continuing losses for more than
3 consecutive months
• You can't pay your monthly PAYE/NI payment
• There has been a sharp increase in your creditors
• Raw material supplies are drying up
• Customer service levels are dropping
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Step 3 – Final weeks
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• Your suppliers are starting legal action
and you may have been presented with a CCJ
• You haven't met your rent payment and
your landlord is threatening to lock you out
• Inbound supplies are sporadic and your
staff can sometimes have nothing to do
• Your bank are turning hostile
• Customer service levels are dropping
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If any of the above sound familiar, or if two or more were true for any step, then that's the stage
that your business distress has developed into. Don't leave it too late, call us for a free chat and
initial diagnostic review.
Stephen Moon, Director, Venturn Ltd
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