Each project arrives with its purpose, milestones and first tasks written out. Here is how the first three read.
Shutdown decision memo with the numbers
Founders usually feel the end coming months before they say it aloud, and the delay burns cash that could have paid staff and creditors in full. A two-page memo that sets out cash, burn, the realistic funding options left and what each extra month costs turns a dread into a decision the board can act on. If the memo argues for carrying on, that is a result too, as long as it names a date to look again.
First tasks
- Write today's bank balance and last month's net burn at the top of a blank page
- List every funding, sale or revenue option still open with its likely date
- Cost each extra month of operating in money owed to staff and creditors
- Send the memo to your co-founders and one outside adviser for challenge
Cash and liabilities snapshot on one page
Every adviser you speak to in the next fortnight will ask the same first question: what does the company have and what does it owe. One page listing cash, receivables, sellable assets and every debt, including accrued salaries, holiday pay, taxes, deferred revenue and loans, answers it once. It is also the sheet that decides whether this is a tidy dissolution or a formal insolvency.
First tasks
- Log in to every bank and payment account and note each balance
- Export the accounts payable list and outstanding invoices from your bookkeeping tool
- Add accrued salaries, holiday pay, taxes and customer prepayments
- Ask your accountant to check the sheet and the net position
Solvency check with a qualified adviser
Whether the company can pay all its debts in full decides almost everything that follows: which closure procedure is available, what the directors may and may not do, and who has first claim on the cash. An accountant or licensed insolvency practitioner can test the snapshot against the rules in your country in an hour or two. Getting this answer early protects you personally as well as the creditors.
First tasks
- Ask two founders you trust to recommend an insolvency practitioner or accountant
- Book a first meeting and send the snapshot and latest accounts ahead
- Write down the adviser's view on solvency and the routes open to you
- Share the written view with your co-founders and board
