In 2023, the highest number of companies ever disappeared from the Polish market - as many as 220 thousand. There were more than 327 thousand suspended businesses. These numbers scream !!!
Entrepreneurs do not can bear the current costs of the company. Profitability is falling - Let's protect entrepreneurs
More than half of companies in 2023 gave their employees inflationary raises at the expense of servicing current liabilities💰 📈. What does it look like in 2024? Inflation is falling, what do employees think?
WE HELP ENTREPRENEURS THROUGH THIS DIFFICULT PERIOD.
Inflation has made us less and less able to afford without salary increases. A study by the Polish Economic Institute in 2023 showed that 52% of companies gave employees a one-time raise, and 48% increased it in line with the increase in inflation. Meanwhile, 30% of entrepreneurs offer employees additional income in the form of paid overtime 🧑💼
Will 2024 be lighter for Entrepreneurs. NOTHING COULD BE FURTHER FROM THE TRUTH.
👉 8 rises facing Poles in 2024
You can read more about this In the article here.
Liquidity of entrepreneurs is declining. They appear payment backlogs. Increased costs, competition, additional obligations that the entrepreneur has to deal with (which, as we know, affects additional costs) and suddenly the first bailiff's execution, blocked accounts. The rest of the scenario is known.
A significant proportion of small entrepreneurs are wondering whether this is the moment to say FUCK IT and close the business.
Entrepreneurs should take advantage of business advice in terms of both the loss of liquidity and the possibility of raising external funds. Unfortunately, there is little awareness in this area.
At the moment of a drop in liquidity or the first payment bottlenecks, we should think about what to do next and what help to use?
This is already the moment when the company is at risk insolvency, i.e. the moment to start activities related to simplified restructuring.
Symptoms to take action in this area include:
- There were initial difficulties in paying bills;
- There is a threat of termination of loan agreements;
- Leasing companies are becoming more and more more aggressive;
- First executions, seizures of bank accounts;
- The tax office issued an unfavourable decision to the entrepreneur;
- Our counterparty is not paying us and our liquidity has deteriorated
- The counterparty has brought an action to court
What by acting quickly we as entrepreneurs benefit from in a simplified restructuring:
- We will select the appropriate type of restructuring proceedings;
- We will open restructuring proceedings - even in 2 days;
- We will prepare an effective restructuring plan;
- We will conduct negotiations with creditors;
- We will prepare layout proposals;
- We will hold a Creditors' Meeting to conclude an arrangement
Prompt action makes it possible to protect the company, its assets and stabilise the company in the market. Why, then, do entrepreneurs not make use of legal tools but wait, believing that 'somehow it will be done'. In my view, this is mainly due to factors such as:
- Lack of control: Process restructuring requires some changes in the organization and industry and cultural change. Entrepreneurs may fear losing control over their company and introducing new rules and processes.
- Uncertainty: Simplified restructuring may lead to a certain degree of uncertainty as to the effects of these changes on the future of the company. This may arouse fears and resistance.
- Costs and time: Restructuring process may prove to be expensive and time-consuming, which may discourage entrepreneurs.
- Staff reactions: Simplified restructuring may cause resistance among employees, and entrepreneurs fear losing the team's motivation and commitment.
- Risk of change: Every change in an organization carries a certain risk of failure. Entrepreneurs may fear that simplified restructuring will not bring the expected benefits or may worsen the company's situation. It is worth noting that simplified restructuring may be necessary in to improve the efficiency and competitiveness of the company, therefore it is important to properly prepare and plan this process.
The reasons and concerns I have shown above are due to a lack of knowledge and awareness. Experienced restructuring advisor will explain the above concerns and guide the entrepreneur through the restructuring process.
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