Broadcast Month: November 2017

Subject: Why punishing failed businesses doesn’t work anymore

Why is it that, according to Bloomberg, 8 out of 10 businesses fail?

A lack of planning maybe, or experience in running a business? A failure to connect with the target audience? Or could it simply be an issue of cash-flow halting all progress?

What it almost certainly ISN’T caused by (at least, for the majority of businesses out there) is a desire to not succeed; while many new businesses will fail by ignorance, very few will fail by intent.

It’s this very fact that demands a reassessment of the way we deal with unsuccessful endeavours, and in particular, a different view point about assets.

After all, as Henry Ford put it after his first 2 automotive efforts went bust, “failure is simply the opportunity to begin again, this time more intelligently…”

A new approach for restructuring specialists

Today’s revolution is technological – economies are being shaped by new technologies, and the minds that create these new forms. Yet, in order for this modern economy to prosper, the entrepreneurial class must be kept healthy and functioning…even when things don’t go as planned.

With this new approach in mind, financial failure should be learned from, not punished because of it. Focus should shift towards how assets involved can be successfully re-allocated into the hands of the next player who has the potential to generate wealth from them.

It’s no mean feat to achieve; the age of the Technological Entrepreneur largely deals with assets in businesses that are dominated by information, human skill and expertise, not tangible assets like plant and machinery.

So, how can it be done?

Better protection of assets and stakeholders

In short, specialists need to be able to work with businesses before they reach a point when formal procedures have to be taken. In doing so, they can help identify and protect these new asset classes through the redistribution process;

• Ensuring that no events take place that could expose the business owner, or his advisors, to any punishments under existing laws.
• Transitioning the valuable content of the business into a new, more secure structure.
• Ensuring all stakeholders are advised and all issues and decisions are transparent.
• Maintaining the self-belief and drive of the business owner to keep striving for success.

Not all businesses can be saved…but with the right team working in partnership with both business owners and their advisors, stakeholders shouldn’t have to lose out.