I’ve been working with business owners for over 30 years, and if there’s one thing I’ve seen over and over, it’s this: the earlier you face financial challenges, the more options you have to save your business and your sanity.
When debt starts piling up, it’s easy to freeze, hope it will pass, or stick your head in the sand. But the reality is, doing nothing only narrows your options. That’s where Small Business Restructuring (SBR) and Voluntary Administration (VA) come in.
Both can help, but they suit very different situations.
Small Business Restructuring (SBR): Keep control, fix the problem
I remember a client, a small construction firm, who came to me stressed and exhausted. They were behind on a few obligations, worried about creditors calling, and not sure if they could continue. The good news? Their debts were under $1 million, they were up to date with staff entitlements, and they wanted to keep running the business.
That’s exactly what SBR is for.
With SBR, you stay in control of your business while we help you prepare a plan that makes sense for your company and your creditors. It’s like having a co-pilot on a bumpy flight — someone who knows the route and helps navigate safely.
The process is practical:
- We assess your financial position, looking at what’s owed and what’s realistic to pay.
- We create a clear plan for repayment.
- Creditors vote, and if they agree, the plan moves forward.
For many owners, this is a lifeline. You stay in charge, protect your relationships with staff and clients, and regain control of your business — rather than watching it slip away.
Voluntary Administration (VA): When you need a guide in the storm
Now, sometimes the storm is bigger. A larger, more complex business, or one with compliance or cash flow issues that can’t be solved by SBR alone. That’s where Voluntary Administration comes in.
I’ve seen companies with VA come through stronger than before, but the key difference is that an administrator takes control, assesses the business, and proposes a plan to creditors. It’s a more formal approach, and yes, you hand over control temporarily.
It might feel uncomfortable at first, but think of it like bringing in an experienced coach for a tough match. They make the hard calls, negotiate with creditors, and guide the business through turbulent waters. The outcome? Sometimes a successful restructure, sometimes an orderly exit, but always a solution you wouldn’t have reached on your own.
Choosing the right path
Here’s the thing: there’s no one-size-fits-all solution.
- SBR is often best if you want to keep running the business, stay in control, and work through debt in a structured way.
- VA is better if you need independent oversight, have complex obligations, or need formal protection while figuring out the next steps.
The golden rule? Act early. The longer you wait, the fewer options you have. The difference between taking action now and waiting until the last minute can be the difference between saving your business or losing it.
Final thoughts
Debt isn’t a mark of failure, it’s a crossroads. One path is panic, fear, and uncertainty. The other is clear, informed, practical steps that put you back in the driver’s seat.
If you’re under pressure, don’t wait until it’s too late. Reaching out early and putting a plan in place can make all the difference.
I’ve helped hundreds of business owners through this exact situation, and the relief that comes with knowing you’re not alone, and that there’s a clear way forward, is invaluable.
With the right support, you can protect your business, your people, and your future.