5 Tips for Insolvency Firms to Manage an Influx of New Business

The number of registered company insolvencies in the UK has been rising rapidly. According to the latest Government of the UK data, the number of reported insolvencies in May 2023 was 2,552. This is an alarming 40% increase compared to the same month of the previous year (1,825 in May 2022).

Of the registered insolvencies, 189 firms faced compulsory liquidations in May 2023, which is 34% higher than in May 2022. The report also mentions 2,181 Creditors’ Voluntary Liquidations (CVLs), a 38% jump from May 2022.

The growing role of insolvency firms is clearly evident from these numbers. While insolvency isn’t happy news, the rising numbers are an opportunity for financial restructuring and insolvency firms to attract clients and gain new business in the coming months.

However, the sudden influx of clients can often turn stressful for firms. We are aware of the ongoing talent shortage and capacity crisis in the accounting industry. So, how should you manage the situation?

In this blog, we will explore five essential tips to help insolvency firms navigate the complexities of handling a surge in new business.

1. Streamline Your Intake Process

Efficiency starts at the beginning of the client engagement process. An influx of new business can quickly overwhelm your team if you don’t have a well-structured intake system in place.

Start by automating routine tasks such as data entry and client information collection. Utilise specialised software to manage appointments, case documentation, and communication. This not only reduces the administrative burden but also minimises the chances of errors.

Additionally, consider setting up a dedicated intake team to handle initial client inquiries. Having a team specifically trained to evaluate potential cases can help filter out clients that might not be a good fit, allowing your senior staff to focus on more promising opportunities.

2. Leverage Technology

Incorporating the right technology tools into your workflow can significantly enhance your firm’s ability to handle an influx of new business and provide professional insolvency services. Implementing Customer Relationship Management (CRM) software can help you efficiently track and manage client interactions, ensuring no potential leads fall through the cracks.

Furthermore, utilise data analytics to identify trends and patterns in your cases. This can aid in resource allocation and strategic decision-making. With the right software, you can assess which types of cases are most profitable, enabling you to prioritise and optimise your workload accordingly.

3. Outsourcing: The Key to Scalability

One of the most effective strategies for managing a surge in new business is outsourcing. Outsourcing insolvency support services can provide several advantages for insolvency firms:

• Expertise: Partnering with specialised outsourcing firms allows you to tap into their expertise, particularly in areas like document processing, data analysis, and legal research.
• Cost Savings: Outsourcing can be a cost-effective alternative to hiring and training new in-house staff. Depending on your requirements, you can hire offshore as well as onshore resources.
• Scalability: Outsourcing is flexible. You can scale up or down your outsourcing efforts as per your firm’s needs, ensuring you have the right resources at the right time.
• Focus on Core Competencies: By outsourcing non-core tasks, your in-house team can concentrate on core functions like client consultation, case strategy, and courtroom representation.

OUTSOURCE YOUR ADMIN WORK

4. Develop Clear Client Communication

Effective communication with clients is paramount when dealing with an influx of new business. Establish clear expectations from the beginning regarding the scope of your services, timelines, and fees. Make sure clients are aware of their responsibilities in the process.

Consider setting up an online portal where clients can track the progress of their cases in real-time. This transparency is critical when dealing with insolvency services as it builds trust and reduces the volume of inquiries directed at your staff. Regularly update clients on important developments and milestones, ensuring they are well-informed throughout the insolvency process.

5. Prioritise Training and Development

As your firm grows to handle an influx of new business, invest in the training and development of your team members. Ensure they are well-versed in the latest insolvency laws, regulations, and industry best practices. This not only enhances the quality of your services but also builds your clients’ confidence.

Moreover, cross-train your employees to handle multiple aspects of the insolvency process. This versatility can be invaluable when redistributing workloads during peak times. Encourage ongoing education and certifications to keep your team at the forefront of industry knowledge.

Over to You

Managing an influx of new business is a welcome challenge for insolvency firms, but it requires careful planning and execution. By streamlining your intake process, leveraging technology, and developing clear client communication, you can create a solid foundation for success.

However, the key to scalability and efficient management lies in outsourcing. Outsourcing professional insolvency services can give your firm the expertise and flexibility needed to navigate the complexities of an expanding client base while maintaining the high-quality service that clients expect.

Additionally, continuous training and development of your team members will ensure that your firm remains competitive and well-prepared for future growth. In the ever-evolving landscape of insolvency in the UK, these tips can help your firm not only survive but thrive in the face of increased demand.

Ready to outsource your admin and compliance work? We’re here to help! Call us at +44 208 146 0808 or write to us at [email protected] to talk to an expert.