COLOUR supplement adverts on retirement could lead you to think that, come the day, you will buy yourself a yacht and enjoy sun-kissed days afloat on azure seas.
The same journals’ business pages might also feature business rescue with nautical imagery; typically a black and white view of stormy seas with a bright orange life-ring being thrown to those in difficulty.
Considerations for getting out of trouble, whether in business or at sea, have many parallels:
Face the oncoming waves – a craft that is being actively steered into the oncoming sea is more likely to avoid capsize than one left to lie which will end up side on to the waves and easily rolled over.
Directors of a business in difficulty should face up to their problems and act positively. This may be the time to press the distress button and seek help.
Stay with your boat – a yacht is bigger than a life-raft and more easily found by rescuers. The boats of many of those who died in the 1979 Fastnet disaster, having abandoned their craft, were found to be afloat and intact.
Directors should take every step to minimise losses to creditors – now is not the time to abandon ship.
Keep afloat/keep a float – if you are in water and out of your depth your three immediate concerns are flotation, flotation and flotation. This means having a lifejacket or something that can act as one.
In business, it generally means having funds available to be able to get help. Cash is king.
A good lifejacket – will include a spray hood. These can reduce water inhalation and prevent drowning.
Directors working with their company’s accountants and solicitors can help keep things in perspective and avoid feeling swamped.
The primary requirements for survival:
Protection from the environment – being in business and going to sea can be tough. While most voyages are uneventful there will be exceptions. When things go wrong people and finances can suffer.
Location – where are you? A chart or GPS is useful on the water. Trading and cash flow forecasts are key to managing cash for business.
Communications – VHF radios with distress buttons are the main tool on a boat; your accountant, solicitor and BRI’s number might be what is required when in business. BRI can be your port of refuge – a means of finding a moment of respite. Take stock of your position and plan the way ahead.
Sustenance – Hydration and nutrition on the water. Cash for those in business. As with emergency rations – you need to keep something in reserve to ensure you can secure help when needed – it may be too late when you’re on empty.
What next?
If you are about to set out to sea in a beautiful boat – pea green or otherwise – we recommend you register your vessel with HM Coastguard and get some RYA training.
When you are setting up in business we’d recommend discussing matters with an accountant and solicitor so that you start with the end in mind.
If, despite all efforts, you think you might need to contact an insolvency practitioner, the BRI team can offer a tow in the right direction. In addition to holding some interesting RYA qualifications we are well versed in helping people out of a financial pickle.
The BRI Northampton office can be found at 100 St. James Road, Northampton and by telephone on 01604 754352.