In times of financial uncertainty, business owners often feel the pressure to solve problems alone. However, without the right expertise, even the most experienced leaders can struggle to identify the best path forward. Engaging with professionals, particularly those with deep situational experience in financial advisory and restructuring scenarios, can provide the critical insights, strategic options, and industry connections needed to stabilise and future-proof a business. Seeking guidance from an insolvency practitioner (IP) or financial advisor isn’t about conceding defeat; it’s about making informed decisions that protect both the business and its stakeholders.
Frank Ofonagoro, Partner, Opus Financial Advisory Group, discusses how seeking the right expertise isn’t just a good idea, but is essential for businesses looking to navigate uncertainty, protect their interests, and secure a stronger future, often meaning the difference between short-term survival and long-term success.
The risks of going it alone
For many owner-managers, there is a reluctance to seek external advice, often driven by the belief that they understand their business better than anyone else. While this may be true operationally, financial distress requires a different skill set, one that demands experience in restructuring, stakeholder negotiations, and financial planning.
The consequences of attempting to manage financial difficulties without professional input can be severe. Missed opportunities for recovery, escalating liabilities, and unnecessary personal risk are all common pitfalls. When businesses wait too long to act, the number of viable solutions rapidly decreases, leaving owners with limited and often less favourable choices.
Beyond problem-solving: The role of expert guidance
Business distress does not automatically mean insolvency. This is a critical distinction that many business leaders often fail to appreciate. Seeking guidance from financial advisors and insolvency practitioners (IPs) need not spell the end of a business but can act as the necessary catalyst for owner managers to accurately establish the true financial position and prospects of their businesses; consider turnaround or exit strategies; and ultimately start to plot the path to recovery or maximising exit value.
Experienced advisors with situational experience can provide more than just solutions to immediate problems; they offer strategic insights that can fundamentally change the trajectory of a business. This includes identifying restructuring opportunities, negotiating with lenders, managing creditor relationships, and unlocking financial options that business owners may not have considered. In an era of growing macroeconomic uncertainty, having access to this level of expertise is invaluable.
Protecting business and personal interests
One of the most overlooked aspects of financial distress is the personal risk it can pose to business owners. Directors have legal responsibilities, and failing to take appropriate action when a company is facing difficulties can lead to significant personal liability. Seeking professional advice and, crucially, acting on it can help mitigate these risks.
Engaging the right advisors with robust professional indemnity insurance (PI) can provide an additional layer of protection for owner managers when considering which advisor to instruct. However, choosing a firm with adequate PI cover alone is not enough—situational experience, and proven expertise of working at pace to help stabilise a business, diagnose its key issues and recommend appropriate solutions, are what truly make a difference in steering a business through financial turbulence.
Knowledge, experience, and industry connections
Not all advice is created equal. The ability to successfully navigate financial challenges depends not only on knowledge but also on the practical experience of having been through similar situations before. The right advisors bring more than theoretical solutions; they bring first-hand experience of what works and what doesn’t.
Additionally, access to key industry connections can be a game-changer. Whether it’s introducing the right funding partners, restructuring specialists, or legal advisors, having a network of trusted professionals can accelerate the path to recovery and help businesses make informed decisions with confidence.
Using financial health indicators to stay ahead
In today’s data-driven world, businesses have more tools than ever to monitor their financial health. Yet many fail to utilise them effectively. Financial health scores, credit reports, and early warning systems provide valuable insights into a company’s stability and potential risks.
Engaging with advisors who understand these indicators (and how to act on them) can help businesses take proactive measures before problems escalate. Rather than reacting to financial distress once it becomes critical, companies should be leveraging data and expert analysis to identify potential issues and address them early.
Seeking guidance is a strength, not a weakness
The most successful business leaders understand that seeking guidance is not a sign of weakness, it’s a sign of strength. In an increasingly complex financial landscape, the ability to access the right advice at the right time is what separates businesses that survive from those that don’t.
Rather than viewing financial advisors and insolvency practitioners as a last resort, businesses should see them as strategic partners in ensuring long-term stability. Whether it’s restructuring, lender negotiations, or stakeholder management, professional guidance provides businesses with the best chance of weathering financial challenges and emerging stronger on the other side.
For business leaders, the message is clear: don’t wait until it’s too late. The sooner you engage with the right expertise, the more options you have, and the greater the likelihood of securing a stable and prosperous future.
