You’ve done everything “right.”
✔️ You’ve cut expenses.
✔️ You’ve improved systems.
✔️ You’ve implemented Profit First.
But something is still off.
You’re working harder than ever… and yet the debt still seems to suffocate you.
If this sounds like you, this isn’t just a rough patch—it’s a sign of something more profound. And this blog is your wake-up call.
The Hidden Danger No One Talks About
Here’s the reality that most business owners don’t want to hear:
You can’t build a profitable business on a foundation of unmanageable debt.
Even with a strong financial system, like Profit First, if you’re drowning in debt from the past, your future is being held hostage.
And it’s not just about owing money—it’s about the legal risks you take every day you operate your business in this state.
Are You Trading While Insolvent?
Most business owners don’t even realise they’re doing this.
Here’s the difference:
- A solvent business pays its bills on time.
- An insolvent business can’t.
It’s that simple.
If you can’t pay your BAS, your super, your tax, or your creditors on time, you may be trading while insolvent. And that’s a serious breach of your duties as a company director.
Why does it matter?
Because if you continue operating while insolvent, your personal assets—such as your house or savings—could be at risk, even under a company structure.
Warning Signs You Can’t Ignore
If any of these sound familiar, it’s time to take action:
- You’re in constant debt with the ATO, super, or suppliers
- You’re living in fear of the next phone call asking for money
- You can’t pay your bills without payment arrangements
- Your bank overdraft keeps growing every year
- You’ve lost sleep, energy, and direction
Your Options: Reset or Collapse
If you’re facing a wall of debt, here are the two paths forward:
1. Small Business Restructure (SBR)
Think of this as a legal “reset” that allows you to:
- Renegotiate what you owe
- Stay in business
- Keep your staff and assets
- Move forward with a clean slate
It’s designed for small businesses with less than $1M in unsecured debt who are ready to take control before it’s too late.
2. Liquidation
If the debt is too far gone or your creditors, like the ATO, won’t accept your restructuring plan, this may be the only option left.
Liquidation is painful. It means selling off assets and possibly losing your business. But sometimes, the kindest thing you can do for yourself and your family is to let go of what’s broken, and start again—legally, and with support.
What Happens Next is Up to You
Insolvency is not failure.
It’s not the end of the road.
It’s a reality check—and sometimes, your most significant act of courage is facing it.
But you need to act before you’re out of options.
Ready to Assess Where You Stand?
If you’re not sure whether your business can recover—or whether you’re already in dangerous territory—start with this:
📥 Contact me with the word “reset” and I’ll send you my free Cash Position & Debt Assessment Tool.
Or if you’re ready to talk now…
📞 Book a free 15-minute clarity call with me. No pressure. No judgement. Just answers.