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Evaluate Your Companies Financial Position

When you evaluate your company’s financial position, selling your business may be one reason. However, if you are concerned about the company’s viability, you may be concerned. Then sit back and deal with the issues now. If your business is failing, action is required. Solutions are available to directors, enabling them to protect creditors, the company, employees, shareholders and themselves.

A director of a limited company must continually evaluate their company’s financial position.

The strategy of any company is not the single factor in defining a company’s success or failure. Managerial ability and leadership are also important. Often in business, luck may play a role. However, having a robust strategy can achieve remarkable outcomes for a company, especially if the company’s competence remains mediocre. Conversely, inspirational directors operating an inapt strategy need to exercise their complete capability and strength to stop failing.

Making an Evaluation

To carry out an evaluation, consider if the strategy you have is correct for you?

So then consider:

  • Internal consistency. – the collective impact of individual policies than on company goals.
  • Agreement with the environment. – whether your strategies then make sense about what is going on externally.
  • Suitability using your available resources. –
    • What are our important resources?
    • Is the suggested strategy therefore appropriate for accessible resources?
  • An adequate risk. – Strategy and resources, mixed collectively, will decide the risk undertaken by the business.
  • Suitable time limit. – An achievable strategy explains what goals remain to be achieved when?
  • Workability. – Does it work? If so, how?

So why evaluate? Having set an original set of goals and policies for your company, strategies do not guarantee business success. They allow directors to measure their business while moving forward.

Directors may therefore not understand a failing business until they first evaluate using control accounts to report updated strategic financial data. Failing this, they may lose control. However, they will potentially look back rather than move forward with their business.

Moving on then to a strategy failing and Evaluate your Companies Financial Position

“The most pressing problem for directors remains! “Cash Flow”.

Director’s pressure usually stems from insufficient cash, and for so many other reasons. Many, sometimes outside the control of the directors. Examples, therefore, maybe:

  • Bad Debts;
  • Cancelled Orders;
  • Machinery breakdowns;
  • Increased order books, placing pressure on working capital.

Owning a business relies on the director’s ability to react quickly.

  • It is too many a challenging arena to be in.
  • Once though you hit the rocks. Ouch!

At this point, seek professional help. We are approachable people who are licensed to help. You are unfortunately not.


Business growth, although exciting, has baggage. One being the absorption of working capital directly linked to business growth. A problem, though, not peculiar to you. Working capital in CASH is the beating heart of your business. Once it dwindles, your business then suffers.

So costs rise, demand for supplies increase. You have a full order book. The machines are at maximum capacity, and then you start to slip into LOSSES.

“You’re a horse pulling a carriage suddenly pulls away, leaving the carriage behind”.

Further, it may be that sales are falling away, margins are dropping, but your business still absorbs the same cost when times were better. However, suddenly the scales tip, from trading PROFITABLY to a LOSS.

Therefore, we at HBG Advisory built our website to promote the services we offer, to help directors at all levels cope with situations, let’s face it, would rather not. Sadly, INSOLVENCY must be met head-on. We pride ourselves on how many former clients recommend us to family and friends.


So as a bespoke specialist practice, we are only concerned with helping directors and companies who may be no fault of their own are in distress despite all their hard work—insolvency is not life and death. You will not be thrown in a cell with other failing debtors. HBG Advisory are a team of real people, carrying out our duty to help. We are members of the Turnaround Management Association (TMA) and have many years’ experience as a team ACT NOW and look back, questioning why you did not act sooner! We are here to help hard-working.

View HBG Advisory as to the specialist your doctors refer you too, to resolve problems outside general practice.

Our aim is always to protect Creditors, Jobs, the business, Creditors, and advise directors on the best way forward.


Understanding Your Companies True Financial Position.

Therefore, to move forward, understand your company’s TRUE position. Be honest when considering everything. Ensure you unearth issues that may be hidden or even problematic for you to consider. 


  • Identify your main concerns regarding your business. 
  • Is your business solvent? 
  • Finding your company may be insolvent is initially a shock! It is though, in many cases, not the END. Your company may still operate them. You need to seek advice from an Insolvency Practitioner, as a responsible director legally. A painless process, although it may be daunting to contemplate. You will be surprised how receptive HBG Advisory are and experienced in sorting your company’s problems out—letting you move on with life.
  • Make a note of all your company debts owed. Ensuring you include trade creditors, HMRC debt, leases, hire-purchase, loans and a company overdraft.
  • Ensure all financial data collated is accurate and up to date. Do not exclude debt to make the position look good. This information is for you as a director to base decisions that are VITAL to your company. If you do, you are only fooling yourself.
  • List all company assets, including cash at bank, retail stock (excluding stock not marketable), ongoing work in progress, and realisable debtors minus any bad debts. Include all assets, including machinery, company excluding leased items.
  • Note, everything that you believe remains positive about your business: staffing, branding, market share, size of the order book, and work in progress. Perhaps you will be surprised how the future may be?

At this point, How Do You Evaluate Your Companies Financial Position?

  • At this point, detail the positives over the negatives. If positives win, what is the journey required? You may be surprised again?
  • Discuss with your team if they believe the business has a future. If so, how may matters improve? Is the team strong enough? Do you need to recruit new people while replacing no performers? If everyone decides no future exists. STOP. Do not worsen the creditors’ position.

“If you cannot put your heart in your business, take yourself out”

  • Now please contact HBG Advisory and discuss your findings for professional independent insured advice. DO NOT let your heart rule your decision.

What next?

Having now arrived at a more informed position regarding your company’s financial status. Then the viability of the company may be judged a lot easier. Company directors then need to determine the opportunities available, enabling the situation to be rectified.

Scanning the HBG Advisory website, scanning through various pages and links, provides the answer to questions directors of failing companies often ask. Suppose you remain unable to find a solution to a concern. Please contact HBG Advisory as per our details below. 

Contact John Waller for a Post COVID-19 Business Review

Without your input and willingness to then move forward. The above pointers will not work. However, your decision to move in control offers the business chances of moving forward, multiply for the better—especially creditors.

How may HBG Advisory help?

Please now book a FREE VIRTUAL MEETING or contact our office on 0330 056 3120 or chat on our web chat with an experienced member of our team in total confidence. 

Resuming the control of your business allows HBG Advisory to work with you and PROTECT the companies creditors along with everyone in a manner only licensed Insolvency Practitioners may do.

HBG Advisory lets company directors decide the way forward in a more considered approach. 

The sooner you act! The sooner your anxiety will go.

HBG Advisory operates the website you have visited. The origin of its conception remains to aid distressed business owners.

The initial advice is free. All meetings remain conducted in straightforward, understandable English. No tricks or hidden surprises!

Please remember, though, the clearer the information you provide, the more accurate we can help. Without being honest with us, we may miss the solution you require.

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