Business partners – dealing with the fallout when things go wrong
Setting up your own business can be quite an attractive prospect in the current climate. If you have a good business idea, a sensible marketing strategy and a bit of start-up capital then it may not be as difficult as you initially imagine.
A new survey by online freelance marketplace PeoplePerHour suggests that the average cost required to start a business in the UK is £312. This figure is perhaps quite appealing to anyone who is thinking of teaming up with a like-minded individual and heading into the business world on their own.
However, if things do not work out as planned and the business potentially requires the input of insolvency practitioners, what are the key things which you need to remember to make the situation run as smoothly as possible?
Sorting through the assets
When a business of any kind falls apart, the assets are the first thing which must be assessed. If the business has failed then it is possible that the value of some of the assets has been diminished. However, things like property, office/IT equipment and existing bank accounts need to be scrutinised thoroughly so that you can both make a clear decision on ownership.
Informing all those involved
Making sure that all relevant parties are aware of a business spilt is a key part of the process when a business ultimately fails, with existing clients being the most important people to keep up to date. However, it may be prudent to consider exactly what you tell them! There may be a strong hope of picking up business from a client in the future, or it may even be the case that the business has split but the business is still running. It is always wise to consider the precise nature of the situation and tailoring your approach accordingly.
In order to ensure that your business has the support it needs, you may want to seek professional advice on a business turnaround plan. It could come just in time to keep the business running and hopefully help to elevate you to success in the future.