New Year New Opportunities – Recovery Strategies for Struggling Businesses
By Keywood Group
The festive season can be a high-pressure period for businesses. For some, it brings a welcome surge in sales; for others, it exposes cashflow weaknesses and intensifies financial strain. As the new year begins, directors may be left facing unpaid bills, mounting debts, or operational challenges carried over from Christmas.
At Keywood Group, we help businesses turn a difficult start to the year into an opportunity for recovery, stability, and growth.
Assess Your Financial Position
The first step in any recovery strategy is understanding your company’s current financial position. Key considerations include:
- Cashflow: How much liquidity is available to cover ongoing costs?
- Debts: What is owed to suppliers, HMRC, and lenders?
- Assets: What can be leveraged or restructured to generate value?
- Operational efficiency: Are there areas of overspending or inefficiency?
A clear assessment allows directors to make informed decisions and prioritise actions that protect the business.
Explore Restructuring Options
If the business is under significant pressure, professional advice can identify formal or informal solutions:
- Company Voluntary Arrangements (CVAs): Agree on manageable debt repayments while continuing trading.
- Administration: Protect the company from creditor action while exploring rescue options.
- Pre-pack Administration: Arrange the sale of assets efficiently to preserve value.
- Debt negotiation: Engage with creditors to restructure payments or defer obligations.
Early intervention increases the likelihood of a successful recovery and reduces the risk of personal liability for directors.
Implement Cost Control Measures
After Christmas, businesses often face lingering operational costs. Practical measures include:
- Reviewing staffing levels and temporary contracts
- Optimising stock levels to avoid overstocking
- Reducing discretionary spending while maintaining essential operations
- Identifying inefficiencies in energy usage, logistics, and procurement
Focus on Revenue and Customer Retention
Recovery isn’t just about cutting costs — it’s also about sustaining income. Consider:
- Re-engaging with loyal customers through targeted campaigns
- Offering promotions or early-bird deals to stimulate sales
- Exploring alternative revenue streams or partnerships
Seek Expert Guidance
January is the ideal time to engage professional advisors. At Keywood Group, we specialise in helping directors:
- Navigate financial distress safely
- Understand legal obligations and minimise personal risk
- Implement practical recovery strategies tailored to their business
- Liaise with creditors to secure breathing space and restructure debt
Final Thoughts
A challenging festive season doesn’t have to define the year ahead. With early assessment, structured planning, and expert guidance, directors can stabilise their business and position it for sustainable growth.
At Keywood Group, we provide confidential, practical, and expert support to businesses facing financial difficulties. If your business struggled over Christmas or is facing post-holiday financial pressures, contact Keywood Group today for a confidential consultation and explore your options.
