We have all been through tough times in the last 18 months. To survive, most businesses have had to take on additional debts that they would never have planned for and, most likely, didn’t ever want. Whether it is CBIL loans, deferred tax payments, rent arrears or other costs, businesses are carrying far higher liabilities than in ‘normal’ times and payments for many of these are starting to come due.
This stress on businesses is further compounded in the near term by the government’s financial and legal protections for directors and their businesses falling away, in some cases potentially exposing directors to personal liability if they aren’t treading carefully when making decisions.
It’s not all doom, gloom and scare mongering though. With economic forecasts predicting strong GDP growth through the rest of 2021 and into 2022; those who plan well to avoid the pitfalls should have bright and profitable futures ahead.
The key is for directors to look ahead, plan carefully and address any potential issues early. If you can spot an issue before it becomes a crisis you can work with your stakeholders to get support and come through it together – share the pains in the near term, and share the gains in the longer term. From conversations I’ve had recently, stakeholders are more open to this now than every before if approached early.
If you have something keeping you up at night or just need a little reassurance, I’m always happy to take a call and share some initial thoughts which may set your mind at rest or help steer you in a new direction. It’s better to make a call now whilst protections are still in place than wait until others can potential take control away from you (after 1 October).