Cameron Woodcroft, Director - Pilot Partners
The Queensland business environment has shifted. Rising labour costs, government funding changes, swelling regulation and an increasingly active ATO are compressing margins across all industries. For a lot of business owners, distress doesn’t arrive as a crisis. It arrives quietly, one issue at a time.
That distinction matters. Business distress can be an event. But generally, it's a process, and most of the time it starts well before anyone recognises a problem.
Through turnarounds and business restructurings, the pattern is consistent. The businesses that keep their choices open are the ones that act early. The ones that run out of road often had viable options earlier on. They waited too long to face what the numbers were telling them, and by the time they acted, there were few options left.
Know all your numbers
Knowing your numbers isn't something to outsource. It's the blind spot I see often in the boardroom. The leader who isn't across the numbers is the last to see trouble coming.
Profit is not cash. It's not a new idea, but it still catches businesses out. A business can trade profitably and still face a liquidity crisis if receivables stretch, creditors age, and the ATO balance builds in the background. Your key indicators aren't just your P&L. They're your cash conversion cycle and your forecast cash balance. Without a forecast, you're guessing, and you won't know you're running out until you have. A deliberate cash buffer in uncertain times is self-insurance. It gives you options on your terms, without relying on a bank, an investor, or a creditor to hand them to you.
Act before you have to
Acting early produces better outcomes. The businesses that come through distress aren't always the strongest. They're the ones who recognised the signs and moved.
If you're seeing the warning signs, get advice now, not when the pressure leaves you no choice.
Cameron Woodcroft is a Partner at Pilot Partners and a Registered Liquidator specialising in business restructuring, turnaround, and insolvency. If you'd like a confidential conversation about your options while you still have them, reach out at cwoodcroft@pilotpartners.com.au
