Get a handle on your turnover loss, 7 tips

Money worries are a reality for thousands of business owners. The same may be true for you. Customers stay away, and bills start piling up. You desperately want to get back to your bustling business before things took a turn for the worse. You are likely to start running up debts if you do not take steps now. It is time for action. What can you do if you want to solve your financial problems?

If you get a handle on the situation in time, you can eliminate the loss and start turning a profit again. That way, your company will be back to its old self and you will be able to do what you love most: business.

1. Determine the state of play

To measure is to know. So, take a close look at your current business situation. Use the KVK business in trouble roadmap. Using the guide, find out if your business still has opportunities to recover financially. Answer the questions and use the step-by-step plan that is right for your business. For more insights into your company’s liquidity, use the Future Check (in Dutch). The check shows how you are doing financially, and will give you a forecast for the next 12 months. Would you like more insights into your finances? Watch the video Increase your financial insight (English subtitles) and use the six tips it offers.

2. Acknowledge your money worries

You sleep badly, you keep worrying about how to proceed, and cannot see the forest for the trees. The road to financial recovery starts with recognition. If your money worries are real, it is time to take action. Address them in time. For example, you can prevent the bank from claiming credit or a supplier from seizing your bank account.

3. Think in terms of possibilities.

Keep looking ahead. On your own, or together with an outside consultant. That will help. For example, research the market potential your product or service has. Or are you going for a new revenue model? After all, market conditions are constantly changing.

Explore the possibility of refinancing existing loans, and see if you can secure alternative funding. Also, consider schemes such as the Financial support for self-employed professionals (Bbz).

4. Tackle your debts

Unfortunately, debts are not going to clear up on their own. But remember: there is always a way out to a better situation. The Debt roadmap will help you find a solution to your debts. Get advice from your financial adviser or accountant.

Through the WHOA, you can reschedule your debts. Meanwhile, your business can carry on. Or you can stop your business if you have reached an agreement through the WHOA.

Under the voluntary payment scheme (the amicable settlement), your business can also keep going. If an amicable process does not work out, you can invoke the Debt Restructuring for natural persons Act (Wet schuldsanering natuurlijke personen, Wsnp). This is usually a better option than bankruptcy for business owners with an eenmanszaak (sole proprietorship), vof (general partnership), cv (limited partnership), or maatschap (professional partnership).

5. Apply for deferral of payment

Time will give you some space to breathe. Are you unable to pay your taxes after filing your tax return? See if you can postpone a payment (in Dutch) or agree on a payment schedule. Always file your tax returns on time. That way, you will avoid a high estimated assessment and a fine. If you can no longer pay your employees’ wages, report the inability to pay (in Dutch) to the UWV.

6. Determine the viability of your business

If difficulties are starting to pile up, take a close look at the viability of your business. Deciding to stop your business is no easy matter. But you do need to explore this option if the outlook for your business is still bleak. If your business is no longer viable, you will want to minimise your financial losses. The KVK Advisory Team will help you wrap everything up and refer you to other parties if necessary.

Video: Determine the viability of your business

7. Get help with debt in time

Financial problems should not be left to continue. If your debts keep mounting, repaying them will get harder and harder. So, do not keep your money worries to yourself: get help with your financial problems in time. The experts from the KVK Advisory Team will advise you on the best solution for your business. Counsellors will help you with a roadmap to get out of financial trouble. They will also listen carefully to your concerns.