Five Strategies to Handle a Surge in New Business for Insolvency Companies

Five Strategies to Handle a Surge in New Business for Insolvency Companies

March 12, 2024

The cases of insolvencies among registered companies have rapidly increased in the UK. The most recent data released by the UK Government indicates that 1,769 insolvencies were registered in January 2024. This represents a concerning 5% increase compared to the same month in the prior year, which saw 1,685 insolvencies in January 2023.

There were 339 forced liquidations, 1,294 creditors' voluntary liquidations (CVLs), 120 administrations, and 16 company voluntary arrangements (CVAs) among the firm insolvencies.While CVL numbers have decreased compared to January 2023, administration and forced liquidation numbers have increased.

However, for insolvency firms, managing the unexpected surge in the number of clients can be stressful. Given the accounting industry's persistent issues of skill scarcity and capacity building, effective management of the client surge issue is increasingly important.

We'll explore five crucial pointers in this blog to assist insolvency firms in managing the challenges of a sudden influx of new clients.

  1. Simplify Your Admissions Procedure: 
    Efficiency is key in engaging clients. Without a well-organised intake process, a surge of new business can easily overwhelm your team. Start by automating repetitive processes like gathering client information and data entry. Utilise specific software to handle communication, case documentation, and appointments, reducing administrative load and minimising errors. Additionally, consider establishing a dedicated intake staff to handle new client enquiries. With trained personnel filtering potential cases, your senior staff can focus on more promising opportunities.
  2. Make Use of Technology: 
    Integrating appropriate technological tools into your workflow significantly enhances your company's capacity to manage a surge in new clients and deliver expert insolvency services. Customer Relationship Management (CRM) software can efficiently track and manage client contacts, ensuring no potential leads are overlooked. Furthermore, leverage data analytics to identify patterns and trends in your cases, aiding strategic decision-making and resource allocation. Determine which case types yield the highest profits with suitable software, allowing you to focus and optimise your workload.
  3. The Secret to Scalability Is Outsourcing:Outsourcing is a highly effective tactic for handling a spike in new business. For insolvency firms, outsourcing support services offers several benefits: 

    Knowledge: Collaborating with specialised outsourcing companies allows you to benefit from their experience, particularly in areas like document processing and legal research.

    Savings: Outsourcing can be a more affordable option compared to recruiting and onboarding new employees internally. You can hire both onshore and offshore resources based on your needs.

    Scalability: Outsourcing provides flexibility, allowing you to scale up or down efforts depending on your company's demands. This ensures you have the necessary resources available when needed.

    Concentrate on Core Competencies: By outsourcing non-essential duties, your internal staff can focus on core responsibilities such as client consultation, case strategy, and courtroom representation.
  4. Establish Clear Client Correspondence
    Effective client communication is vital when managing a surge of new business. From the outset, clearly define service expectations and payment schedules. Ensure clients understand their roles in the process.
    Consider creating an online platform where clients can track real-time progress on their cases. Transparency is crucial in insolvency services, fostering client confidence and reducing enquiries about your team's capabilities. Provide regular updates on significant developments and milestones throughout the insolvency process to keep clients informed at every stage.
  5. Give Training and Development Top Priority
    Invest in the education and development of your staff as your company grows to accommodate a surge of new clients. Ensure they stay updated with the latest rules, laws, and industry best practises related to insolvency. This not only enhances your service quality but also instils trust in your clients.

Additionally, provide cross-training to your staff so they can handle all aspects of the insolvency process. This adaptability proves invaluable during periods of high demand. Encourage continuous learning and certifications to keep your staff abreast of industry developments.

In conclusion, managing a flood of new businesses presents both challenges and opportunities for insolvency firms. By prioritising clear client communication, leveraging technology, and optimising intake processes, you can lay a strong foundation for success. Insolvency administrators are key to scalability and effective management, providing the flexibility and expertise needed to meet growing client demands. Furthermore, investing in staff training and development ensures your business remains competitive and prepared for future expansion amidst the evolving UK bankruptcy landscape.