There is no doubt that times are tough for many small business owners.
Business insolvencies across Australia are on the rise with over 8,000 businesses entering liquidation in 2023, the highest level since 2015.
The leading industry for insolvencies is the high-risk construction industry. The construction and building industry is a key indicator of a struggling economy due to its tight margins and supply chain costs. When we see a myriad of construction businesses go under, it’s a warning sign for the Australian economy.
With a bleak forecast ahead of predicted business failure set to increase over the next 12 months from 4.5 per cent to 5.8 per cent – what can you do to avoid being one of the statistics?
If your business is struggling, seek help early
The key to seeking business advice is to act well before you think you need.
Many business owners seek financial advice too late for many reasons. It could be emotional attachment, pride, embarrassment, or trying to fix the problem yourself for as long as possible.
Unfortunately, if you seek help too late, you may have reached the point of no return.
The key is to seek advice before you reach this stage.
When is a good time to seek financial advice if you feel your business is at risk?
There are some key entity debts and personal liability red flags/risk areas that are key indicators if your business is in trouble.
- Are you under constant ATO pressure?
- Struggling to repay business loans?
- Do you have late or non-lodgement of Business Activity Statements?
- Do you feel you are on the brink of the beginning of trading risk?
Did you answer yes to any of the above?
If so, it is worth making an appointment to seek further advice and discuss the way forward for your business.
It is never too early to seek financial advice if you are struggling under the weight of financial business pressure.
Our team can help assess your current situation and devise a new way forward before it is too late.
If you are feeling the pinch in your business, get in touch with us and make an appointment for a business planning discussion.
