by Shaw Gidley15.05.19

Creativity involves thinking up new ideas. Most business owners have countless creative ideas that kick around for years until they are either forgotten or abandoned. The ideas may have merit, however, no responsibility is taken for their execution.

Innovators take charge and turn words into action. They are champions that “take on” an idea and take responsibility for its execution. The innovation champion usually plays the numbers, not phased by repeat failure and focuses on overall success.

Most champions fail all of the time. The difference is that they are able to reconcile overall failure with success. While the risks of failure is high when it comes to executing new products or services, failure to innovate will inevitably lead to a business’s decline.

Business failures are failures that are allowed to go on without guidance, usually resulting from a lack of implementing professional advice, planning and action. Sometimes, however, these failures can also result from factors completely out of the control of a business. An accountants, lawyers and business advisor’s role extends not just to servicing a client’s statutory compliance, but includes guiding innovation, failure and overall success.

The need to stay relevant in business may need to be accompanied by a requirement to restructure or consolidate operations.  Our legal system provides a number of avenues for business owners to take responsible risks in achieving this objective.

Shaw Gidley offer a number of services to assist businesses and their owners in continuing with their success including:

  • Consulting Advice
  • Informal restructuring advice
  • Assistance in developing a “safe harbour” plan
  • Voluntary Administrations

Directors who take prudent measures to turn around distressed companies and are willing to implement new ideas to turn around a Company’s corporate fortunes can implement a restructuring plan and protect themselves from the risk of failure should the plan ultimately fail.

Turnaround arrangements are complex and require professional and qualified advice. Without obtaining professional assistance, Directors ultimately risk personal liability and bankruptcy. Where businesses require protection and directors would like to avoid the risk of personal liability from insolvent trading, taking advantage of these legal protections is essential.

We recommend that any restructuring and insolvency advice should only ever be provided by qualified turnaround professionals that are members of the Australian Restructuring, Insolvency and Turnaround Association (“ARITA”). ARITA members are required to complete professional qualifications, have obtained sufficient professional experience and are subject to a stringent code of professional conduct.

Shaw Gidley are experts in restructuring, turnaround and insolvency and provide free initial advice on these matters. Please contact our offices on (02) 4908 4444 or (02) 6580 0400.