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Why collaboration is key to SME survival in today’s market - Phil Morton for TheBusinessDesk
Watching businesses I have supported return to financial stability and continue trading into the future is one of the most fulfilling parts of being a Director at Leonard Curtis.
I support SME business owners during some of the most challenging periods of their business journey. The market is now returning to a more typical pattern of financial distress following the post‑Covid reset, and helping them understand that financial distress is not the end, and that there are options available, is an important part of that work.
Seeing their shift in mindset when they realise they are not alone, and that turnaround and recovery is achievable, is always rewarding. There are always opportunities for early, practical support and tailored restructuring advice.
As we are seeing in the wider economy, SMEs continue to be under pressure from rising costs and creditor enforcement, particularly HMRC’s firmer and more proactive enforcement stance. Retail and hospitality sectors remain particularly challenged due to higher employment and property costs, as well as ongoing changes to the high street.
The real value lies in directors, especially those in these sectors, collaborating with accountants, lenders, and legal advisors. This allows for a joined up, preventative solution before formal insolvency becomes necessary, and greater stakeholder collaboration and transparency will continue to shape successful outcomes.
With pandemic related insolvencies now largely worked through, we are now dealing with clearer and more typical indicators of distress across SMEs. HMRC’s increasingly firm approach is contributing to higher levels of compulsory liquidations and putting additional pressure on already stretched businesses. These failures have a ripple effect, impacting employment, supply chains, and regional economies. For advisers, this means being proactive, spotting early warning signs, and encouraging directors to seek advice before options are limited.
In recent years, there has been a significant shift from liquidation focused approaches to business rescue and recovery strategies, in order to preserve value and avoid terminal outcomes, which is something we try to achieve wherever possible. Our goal is always to find the best solution for the business.
A phrase I come back to a lot is “Seeking advice is not a sign of failure.” SME owners are often resilient and self-reliant, so asking for help can feel like admitting defeat. But recognising when specialist input is needed, is a sign of leadership and strength. Whether it is a conversation with their accountant or engaging a firm like Leonard Curtis, early advice can be the difference between survival and closure. The beauty of our multi-disciplinary offering is that where the business may need funding rather than an insolvency process, our team can arrange this in house.
A lesson I learnt early in my career, and one that has always stuck with me, is the value of keeping employees of distressed businesses informed, even when the news is difficult. Staff often pick up on signs of distress, whether that be missed payments, reduced orders, or supplier tension. A lack of communication breeds uncertainty and speculation, which can derail recovery efforts. Open, honest and regular updates help maintain morale and trust, both of which are critical during any turnaround.
I have had the privilege of working with mentors who have challenged me to think strategically and remain calm under pressure. Their guidance helped me develop a practical, solutions-focused approach to complex business problems. That experience now shapes the way I support directors and their advisers as they navigate difficult decisions.
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Leonard Curtis is a trading style of Reach Commercial Finance Limited, registered at Riverside House, Irwell Street, Manchester, M3 5EN. Company Register number is 09056450. Reach Commercial Finance Limited is authorised and regulated by the Financial Conduct Authority, FRN: 753686. Reach Commercial Finance Limited is an authorised credit broker and not a lender. We work with an unrestricted number of lenders to find a potentially suitable arrangement for your consideration. ICO registration ZA069234 and you can check via www.ico.org.uk. We will receive commission from lenders. Different lenders pay different amounts depending on different commission models. For transparency we work with the following commission models: fixed fee, fixed rate of commission, percentage of the amount you borrow and rate for risk (this is based on the risk profile of the business). Further details of the commission model, calculation and amount will be disclosed to you throughout your customer journey. Privacy notice.
Leonard Curtis Legal Limited is a limited company, registered in England and Wales with registered number 09820186. Registered office: Riverside House, Irwell Street, Manchester M3 5EN. Leonard Curtis Legal Limited is registered with the Solicitors Regulation Authority with number 626004.