Credit Matters Blog


Kim Radok 21 August 2021

The problem all businesspeople have from time to time is to take stock to review and ensure the financial and operational viability of their business. As times and circumstances change, it is essential that your business is still viable and suitable for existing conditions.

Businesses fail for all sorts of reasons, even in the “good times”. Today however, we all live and operate in a chaotic world where there are “business icebergs” everywhere. These “icebergs” can cause untold destructive damage if your business encounters them and fails to take proactive action.

It almost seems today that if the complicating factors of COVID doesn’t destroy your business, another factor will soon rear its ugly head and get you. Perhaps it would sensible therefore, to find out how viable your business is and to search for those red flags which indicate that a “business iceberg” is on the horizon. After all, being proactive and realistic about your business’s viability gives you a degree of control over what happens next.

It may be for instance, as difficult as it will be, closing your business down could be a positive long-term decision. If a business iceberg is visible on the horizon, waiting to hit it doesn’t make much sense. Furthermore, if you close down your business early, you may protect a portion of your capital, and equally important, your business and personal reputation. It cannot be stressed enough; this current pandemic situation will be resolved at some stage in the future. Starting up afterwards again will be so much easier with your capital and reputation intact.

Looking for the red flags of the business’s icebergs which may affect your business includes, but not limited to the following:

  1. debt owed and owing;
  2. actions and dictates of politicians and their bureaucrats;
  3. the words and actions of do-gooders who are big on talk, but which often are not supportive of those businesses which do the right thing;
  4. the actions of your suppliers and customers;
  5. the factors which influence your employees’ words and actions;
  6. your local community which is often a valuable support factor;
  7. your ability to fund and find innovative ways of selling your product and services, etc.

In conclusion, there are “business icebergs” out there today which can sink your business, just like the iceberg which sank the Titanic. As a businessperson, it is your responsibility to look out for these business icebergs. At no time in history has this strategy been more important than now, with much of the current pandemic still to be endured.

Want to know more, contact Kim at, or telephone (03) 9886 6707, A/H (03) 9802 0608, mobile 0411 649 261, or have a look at what we offer via our website at