Advisory blog offers speedy lifeline to ailing firms

SALVAGE your business, get creditors off your back and avoid liquidation in just one week — that’s the speedy lifeline offered by a new Irish business advisory blog.

Firstrecovery.ie yesterday launched the corporaterecovery.wordpress.com blog, promising to help ailing firms to turn their fortunes around in record time. While longer term recovery involves a 10-point plan, the first step is to get your creditors inside the tent.

Firstrecovery.ie managing director Rob McIndoe said: “Your first step is to get your creditors off your back. My experience is that most businesses are saveable, but first you have to buy yourself some time to put things right.

“To get that bit of respite, you need to communicate with the banks or whoever has lent you money. I meet with the banks, either with or without my clients present. Sometimes nasty things can be said between a struggling business and lenders.

“Plus, the fact that you have brought someone in from outside into your company to help is good in itself. The banks can see that you realise you need help. Then you can work on a realistic repayment plan.”

Mr McIndoe and his colleagues at Dublin accountants Feehily & O Dwyer set up Firstrecovery.ie earlier this year in response to the economic downturn. The service encourages people to rewrite their business plan, to look at new products and spin-off markets via product and market re-orientation.

The new blog suggests a 10-step recovery plan, incorporating business analysis, cash flow, credit and general management strategies. Above all, it urges communication with banks, customers, staff and suppliers. However, the service also warns that not every business can be saved.

“Losing a business in Ireland today is like losing a close relative,” says Mr McIndoe. “In many cases a business owner’s personality and hard work have been invested into a business for many years, so that when the company fails, for whatever reason, it causes tremendous grief for the business owner and family.

“Business owners thatsuffer the loss of a business need to allow themselves the same time for acceptance just like any other personal loss. They need to put the loss into perspective. Either way, waiting until the last minute, is the worst thing a business owner should do. The earlier the call, the easier and more cost effective the recovery can be.”