Receive the latest mybusiness news
Copyright © 2020 MOMENTUMMEDIA

Struggling businesses too eager to shut down

Adam Zuchetti
Adam Zuchetti
16 June 2017 1 minute readShare
Struggling business

Too many struggling SMEs are shutting down prematurely without exploring the full options available to them, an insolvency expert has told My Business.

According to Peter Marsden, national head of restructuring and recovery at RSM Australia, his firm alone sees around 1,000 businesses go through some form of insolvency process each year. But many are calling it quits too early simply because they don’t understand the options available to them.

“We do a lot of work for the Australian Taxation Office by consenting to act as official liquidators, and way too often by the time we get appointed, the business has just shut and all they do is hand the keys over and say, ‘Sorry, we couldnt make it work’,” explains Peter.

“You sit there and go ‘Gee, you didnt really try and investigate all the options’.”

Peter says that there is no substitute for good professional advice if your business is struggling.

“Invariably, good advice is worth the money that you spend on it. It can save a business, it can turn it around.”

Peter also notes that particularly in the SME sector, where the businesses tend to be run by owner/operators, emotion often clouds the judgement of business owners when making difficult decisions.

“You need to be clinical and detached, and assess it as a business [person],” he says.

Peter has also outlined how insolvency can sneak up on business owners, and the warning signs to be aware of so that pre-emptive action can be taken early.

Struggling businesses too eager to shut down
mybusiness logo
Adam Zuchetti
Adam Zuchetti

Adam Zuchetti is the former editor of MyBusiness and a senior freelance media professional, specialising in the fields of business, personal finance and property. In 2020, he also embarked on his own business journey – inspired in part by the entrepreneurs and founders he had met through his journalistic work – with the launch of customised pet gifting and subscription service Paws N’ All.

Leave a Comment

Latest poll

How satisfied are you with the SME measures in the federal budget?