How can I save a profitable part of my business from going into administration?

Question

I can't cope with mounting debt and my business is about to go into administration. However there is a profitable part of it I want to keep how do I do this

Answer 1

you need to open another small business and move the profitable part of your current business to it, so when your current business goes into liquidation you still have the profit making part. best wishes

Answer 2

Since you have not given the type of business,income,expenditure cost etc no meaning full answer can be given.If you want a critical examination of your business you send me detalis of business,products,cost,sales,administrationexpenses,profit department wise,Balance Sheet for the past 3 years in my eamil id.General prediction is that cutting administrative cost is a challenge and is an area you can correct.You find out the number of employees in administration division and have a real look whether they are all required.Retrench surplus staff or redeploy in profitable areas.If the accounts are manually done buy PC and switch over to computerised.Introduce mechanised packing of goods for sale.Outsource some of the areas of work to cut salary bills.Close down the loss making departments.Have some sort of personal supervision of critical areas of work.If the debt is mounting ,seek additional capital and reduce high interest bearing loans.Reduce credit sales.If you are not availing suppliers credit,interest free,utilise more of suppliers credit.Good Luck.Employ only 2 percent of staff only in Administration division.,if it is more reduce in a phased manner.Last thing is if you are working in a rented premise and full space is not utilised,explore the possibility of sub letting for augmenting income or shift to a smaller premises with lower rent. Good Luck

Answer 3

I personally think the profitable part should be used to pay the debts off...something your administrator would do.

you are in business, but this does not give you the choice to make money at other peoples expense.

Have you considered getting a troubleshooter in? they can often work wonders, usually by getting you to change unheathly practises.