fbpx

LETS GET DOWN TO BUSINESS.

Question :
If I am a director of a startup or a SME where all the revenue has stopped, what would be your advice to me as a director (accepting legal advice does not need to be sought) – more what would you do if you were in this situation? to

Question submitted 29/03/20 @ 06:07pm
Industry: Governance
388
VIEW
6
VOTE
  • Most importantly, be there for the entrepreneur or owner manager. There’s no playbook here so we need to provide support and the best guidance/advice we can with the information available. Lots of business owners are feeling isolated, confused and overwhelmed. One of our roles as directors is to help navigate the govt support initiatives, explore what, if any, aspects of the business can go online, provide support in the comms to key stakeholders and overall support to the owner. We want to do everything we can to help businesses survive, reset and be ready to come through this ready to go again.

    Hi Andy
    Better make sure you are not approaching insolvency. I expect your duty to the company is to cut costs and stretch out resources including govt help so that you don’t trade while insolvent.
    You probably cant rely on receivables as it is clear that everyone is running to the exits and trampling those in the way now the house is on fire. Unfortunate but that is human nature and cash is king, and it is becoming every one for themselves
    Even if you take the govt loans they don’t improve solvency as they are a liability too.
    If you cant stay solvent it seems you have to liquidate.
    As I have said in a private message to you. We need to get back top work asap and get the cash flowing through the economy.

  • You must be logged in to reply to this topic.