Good quality business insolvency advice is essential to help a company prepare for any possible insolvency scenario and plan strategies to deal with the most likely ones. Many companies find out when it’s too late that they don’t have adequate debt recovery options or anything in place should they get to the stage of needing a debt agreement or administration or liquidation.
External risks can trigger business insolvency.
If one is a business owner, it is possible that external factors could trigger business insolvency advice. For example, if a lawsuit costs one more than one has or if their bank unexpectedly changes the terms on which it will lend to one and if the price of their products falls in half overnight. In some ways, external risks are the easiest to manage because one can’t do much about them except be aware of them; there is no way to guard against all possible risks. On the other hand, if one doesn’t know what they are, one can’t evaluate their business in light of them.
Suppose one doesn’t think their business could fail because of a specific risk. In that case, even if that risk materializes, one might not recognize that it is a problem or think it can be managed without considering available tools and strategies. If they are like most small business owners, one probably has a list of what could go wrong with their business. But this kind of thinking has certain pitfalls that can make it potentially more dangerous than useful, the more potential problems one identifies, the less likely any one of them seems to be a real threat.