Top 5 Warning Signs

Top 5 Warning Signs a Business May Be Heading Toward Insolvency

Running a business is tough at the best of times — but knowing when you're headed toward a cliff edge can be the difference between recovery and collapse. Based on decades of experience, here are five early warning signs your business might be sliding toward insolvency — and what to do about it.

1. Cash Flow Crunch - You’re always behind on bills, suppliers are chasing you, and you’re robbing Peter to pay Paul. When managing cash flow becomes your full-time job, something’s wrong. Insolvency often starts here.

2. ATO Pressure or Ignored Obligations - ATO letters are piling up, or maybe you’ve been putting off lodging BAS or Super. It’s tempting to delay when you're under the pump, but this can escalate quickly — especially if directors are held personally liable.

3. Relying on Personal Credit or Loans - If you’re paying business expenses with personal cards or borrowing from friends, it may be time for a circuit breaker. This is a common mistake that ties personal and business finances in ways that are hard to unwind.

4. Staff Turnover or Low Morale - Your team often knows before you do when something’s off. If key staff are leaving or morale has dropped, it's worth looking at what’s going on financially behind the scenes.

5. Sleepless Nights and Constant Stress - When the stress keeps you awake at night, it’s more than a money issue — it’s a wellbeing issue. And no one makes good decisions under pressure.

What You Can Do - Resolve Business Solutions offers one-on-one coaching and practical restructuring advice to help turn things around. Visit resolvebusinesssolutions.com.au to learn more about their business turnaround strategies.

If you’re looking for a personal advisor who’s walked the hard yards with hundreds of business owners, check out dougconstable.com.au — a voice of experience in tough times.

Don’t wait until it’s too late. Get the right help and take back control before it's too late.