Startups are built to scale, but what happens when the unforeseen strikes? In our Expert’s Insights session, we had the pleasure of learning from Jakob Krischer, a legal expert from VOIGT SALUS. Rechtsanwälte und Steuerberater PartG mbB, on the topic of managing a startup during a crisis—an essential skill for every entrepreneur. 💪
"Always keep an eye on your financial plan and contact an expert early enough if problems are looming to avoid critical pitfalls" are the words of advice from Jakob when dealing with a crisis. The advice reflects simple logic however it needs to be internalised by all founders facing a crisis both on the thought and emotional levels to be implemented.
Here are some key takeaways from Jakob's insightful session:
✅ Recognizing insolvency: Illiquidity, over-indebtedness, and imminent illiquidity are critical indicators that your startup might be in trouble. Understanding these financial warning signs early can make all the difference.
✅ Managing Director's duties: One of the most crucial responsibilities of a Managing Director is knowing when to file for insolvency. Jakob stressed that MDs must act swiftly to avoid personal liability or even criminal prosecution.
✅ Insolvency as a restructuring tool: Insolvency doesn't always mean the end—sometimes, it's a new beginning. Jakob shared a real-life success story of a startup that used insolvency to restructure and emerge stronger, with no financial harm to its directors.
Crisis management is not just about survival; it's about staying ahead of potential pitfalls and knowing how to turn challenges into opportunities. Stay proactive, keep your finances in check, and never hesitate to seek expert help.
What steps are you taking to protect your startup? Let us know in the comments below!
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