Business Crisis: Where to start?

We continue to assist business owners to prepare and respond to crisis that may arise in their business.

Crisis management generally involves preparing for the effects of crisis on a business and then minimising the extent of the disruption and damage by getting things back on track as quickly and smoothly as possible.

As business crisis managers, we see the risks and threats to viability and work with you to develop strategies to deal with the impact.

Whilst the pandemic and recent natural disasters like the floods in Northern NSW are recent examples of external factors that can create a crisis within a business, issues that are perhaps less “front of mind” for business owners continue to arise.

THE OTHER EXAMPLES WE ARE SEEING INCLUDE:

• Serious health issues including the death or disablement of key personnel;
• Disputes with shareholders and directors;
• Product/construction issues including recalls and defects;
• Cyber security attacks;
• Serious business interruption and under insurance;
• Social media and associated reputational matters;
• Fraud and employee misconduct; and
• Environmental risks.

Best practice for businesses is to have a business continuity plan to assist them in responding to such disasters and support recovery.

However, the reality is that even with a business continuity plan in place it can still be a difficult exercise to implement appropriately when required.

When experiencing business crisis, some matters will require immediate attention, whilst others would be considered best practice considerations, that may help in the post-disaster phase to ensure your business operates better than pre-crisis.

At RSM, our central goal is:

“To help you and your business emerge from a crisis with as little impact as possible on your business and personal finances”.

To do this, it is important to understand the position, continue to review and monitor any changes, pressure test your strategies, and seek external support, feedback and advice.  

If your business model is fundamentally strong and likely to be viable longer term, you would be looking at strategies to immediately limit the damage/risk and position and improve your business for when the crisis/storm passes.  

If, however, the issue is so serious that you have concerns about ongoing viability, it is critical that you reach out early. We can work to limit your losses, review your risk, and generally seek to support you in implementing the appropriate business restructuring or exit plan.  

Your business crisis action plan will normally require input from various specialists (Government support/counsellors, accounting, legal, finance, insurance etc) who are well placed to help you make informed and pragmatic decisions. It should cover both your business and personal/family position.

When working with clients in business crisis we generally take a 3-step approach.

STEP 1.

Assessing and understanding the situation – “The Health Check”.

STEP 2.

Collaborating to develop a Business Crisis Action Plan.

STEP 3.

Providing support to implement, monitor and review the Business Crisis Action Plan.

We’re all here for you and we have been for over 100 years 
RSM has been helping businesses with their financial affairs for over 100 years – from regional and remote Australia right through to our capital cities.

We survived the great depression and every economic slump since – and all of our financial experts are passionate about helping you do the same. 
We are well placed to help you develop and implement your business crisis action plan offering a unified experience with our experts all working together, across specialisations, drawing on the combined experience, to support you.   
 

Here to help you explore your options

Do you or your clients need insolvency support or just want to understand the options available to you? Free, initial phone consultations are available. Find out more or call 1300 263 816.

About the AUTHOR: 
Tim Gumbleton with over 25 years commercial experience and RSM Australia are the Mid North Coast’s business crisis management, business improvement, corporate turnaround, dispute resolution, insolvency, restructuring, asset protection, forensic accounting, liquidation, winding up and bankruptcy specialists. View profile >

About RSM – Our Point of Difference: 
RSM is a full-service national accounting, consulting, and advisory firm operating from over 30 offices throughout Regional and Metropolitan Australia.   
We are uniquely placed given our regional expertise, footprint and extensive national coverage backed by international reach and scale.

RSM can help you and your business, no matter where you may be based. 
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