With the world in turmoil and businesses suffering left, right and centre, sometimes what we need as business leaders is a bit of outside perspective as to how we respond, position ourselves and communicate. As an advisor to businesses in financial difficulties, you are in a prime position to communicate this at a trusted level.
“Once upon a time” - I have served countless clients in the world of legal, finance, banking and business adivsory in the UK.
My job is to tell your potential clients why they should be counting on you to help them out at a time of trouble.
I have spent over two decades working with business leaders to position them as industry experts and influencers. There is no question in my mind right now that, if communicated and executed correctly, an understanding and sypathetic approach to business owners facing potential insolvency can win plenty of new clients.
Business is suffering but...
We are in the midst of an unprecedented situation that has taken every industry and business by surprise. Every business owner we speak to is suffering, they are having to make tough decisions about the livelihood of themselves and their employees on a scale they never imagined likely. Many companies have implemented short term fixes to buy the time needed to look at the long term security, but often they don’t know where to start looking.
It is at times like this that they need a trusted advisor.
Someone who can talk them through scenarios, explain their options to them and, more importantly, help them understand what outcomes each option is likely to generate. They need to speak to someone who they trust has their best interest at heart.
We have to accept that certain industries are in free fall and this is going to result in large scale closures. You no doubt know which industries are going to be in most need of your services, but do you know how to reach the decision makers and how to get them to trust you?
Suppliers are not being paid and cash flow has just been upgraded to God
It is businesses in the lower half of the supply chain that suffer the most in times of global financial downturns. These are usually the businesses that also happen to be least well equipped to deal with major hits to their cash flow.
Depending on the sector, different supplier types are in the biggest risk categories. It is rare that demand dries up in almost every industry, but everyone from hoteliers to training providers have witnessed their income suddenly swept from under their feet in the matter of weeks. The knock on effect is that the businesses at the top of the chain put the contracts they have with their supplies on hold. This trickles down the chain and we are faced with an unprecedented situation where every business is looking at its forecast wondering where survival is going to come from.
You need to be talking to these business owners NOW, at the point when they are starting to look at re-writing their business plan and budgets.
This is when they are in the right mindset to start considering sensible financial planning and making preparations for all scenarios. At the moment they are still thinking rationally, so now is your chance to make a difference for them.
It used to that cash flow was king, but it has now well and truly been upgraded to God like status. With such a fast, dramatic change is the business landscape, turnover has become almost irrelevant, it is the businesses that can stay on top of their cash flow that will survive.
Having a healthy level of debtors has always been seen as important to a business, because it means there is cash out there to still be collected. Now however, that seems like putting tea in your milk after you have drunk it. That cash needs to be collected quickly, but more than that, you need to communicate to owners the importance of knowing which debtors are good and which are bad, because that could make a real difference to the insolvency or business rescue process.
Now is the time to get your message across that some debtors will only pay once the necessary processes are undertaken and that business owners MUST NOT wait until the business "goes under".
People don’t understand the personal impact of insolvency
You understand how the insolvency process works, but most business owners don’t. It is something they think about when starting out, because they never envisage failure. You need to be telling them NOW about the risks they face personally as company directors and advising them on the steps they can take to minimise the long term personal impact that could affect their future business opportunities.
Directors need the process and their options explained to them early on, so they have the time to consider their next moves and make the right decisions for them. You can build trust with them by setting things out clearly to them and showing empathy and understanding of the challenges they are facing. You should also get the message across now that you want to help them have all the information they need and help them make the decisions that are best for them.
You need to be explaining to business owners NOW that voluntary insolvency is a much better option than waiting for bankruptcy.
The earlier you tell them that the better. They will thank you for it and if they trust you, they will use you.
Government aid will help some...but many will need you in 6-12 months
In the UK, we are lucky that our Government has been bold in their rescue measures for businesses. Whatever we think of the speed of response or delivery, compared to many other countries, our businesses are being looked after. The reality is though, that for many businesses this could just be a short term rescue, a bit like shuffling deck chairs on the titanic whilst the water slowly rises through the ship.
Building trust in YOU and awareness of your personal and business brand takes time, so NOW is the time to start building that trust and awareness.
If you put the effort into your brand now and position yourself as a trustworthy insolvency and business advisor now, then by the time the majority of your future clients need the advice, you will be the first people they think of.
Being visible and providing potential clients with good advice and useful, engaging content on a regular basis [two to three times a week] is THE single, most effective way of building the trust and brand visibility you need to win more business.
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