Could I Actually Save My Business?

A general resource for directors wondering whether a pressured business may still have structured options.

Could I Actually Save My Business?

Last updated 18 July 2026

93% of Australian small businesses that completed a formal restructuring plan are still registered and trading today.

That’s not a projection or an estimate.

It’s the headline finding from ASIC’s 2024 review of small business restructuring (Report 810), which analysed 3,388 restructuring appointments and over 1,260 finalised plans.

For business owners who are lying awake wondering whether there’s any way to keep going, that number deserves attention.

Not every business will qualify for the process, and not every plan will succeed.

But the data suggests that with the right structure and support, the majority of small businesses that enter formal restructuring can survive.

You don’t have to hand over the keys

One of the biggest fears directors have when they hear the word “restructuring” is that they’ll lose control of their business.

In traditional insolvency processes, such as voluntary administration or liquidation, that fear is well founded. An external administrator typically takes over, and directors step aside.

The small business restructuring (SBR) process works differently.

Directors stay in control of the company throughout the entire process.

An independent restructuring practitioner is appointed to help develop a plan, but the directors continue to run the business day to day.

You keep making the decisions. You keep serving your customers. You keep employing your team.

The practitioner’s role is to work with you to develop a proposal for your creditors, not to take your place.

How the process works

The SBR process follows a structured path. Once a restructuring practitioner is appointed, they work with you to develop a plan that proposes a dividend to creditors, typically a portion of what is owed.

Creditors then vote on whether they accept the plan.

ASIC’s data shows that 87% of proposed plans sent to creditors were approved. That’s a strong acceptance rate, and it suggests that creditors generally prefer a structured outcome over the alternatives.

If the plan is approved, your business makes the agreed payments over the plan period, which can be up to three years.

When the plan is fulfilled, all admissible debts and claims subject to the plan are released.

The business moves forward without the burden of the original debt.

The survival data is striking

This is where the numbers become particularly compelling.

ASIC tracked what happened to businesses after they completed their restructuring plans. The results paint a clear picture:

  • 93% of businesses that fulfilled a restructuring plan remained registered and trading
  • 96% remained registered six months after plan completion
  • 92% remained registered one year after plan completion
  • Two years after plan commencement, only 6% of plans had been terminated, with 75% fulfilled and 19% still ongoing

We believe these figures show that small business restructuring is not just a short-term fix.

For the vast majority of businesses that complete the process, it appears to be a genuine path to long-term survival.

If your business is under financial pressure and you’re wondering whether it’s possible to keep operating, a confidential conversation with a business recovery professional can help you understand your options.

The first conversation is always at no cost.

If this is of interest, you can request a free business strategy assessment here.

What does it cost?

One of the most common concerns directors have is that formal restructuring will be prohibitively expensive.

The data tells a different story.

The median cost of the entire restructuring process was $21,998. That covers both the restructuring appointment and the plan phase.

For context, the median value of unsecured creditor claims in these cases was $359,082, with around 75% of companies owing creditors less than $600,000.

Compared to the cost of voluntary administration or liquidation, which can run into tens or hundreds of thousands of dollars, the SBR process is significantly more affordable.

And unlike those alternatives, the business typically survives.

The industries using it most

The sectors making the most use of the SBR process reflect where small business financial stress is most common.

Construction accounts for 27% of all restructuring appointments, and accommodation and food services for 23%.

If your business operates in one of these industries, you’re not alone.

These are sectors where cash flow pressure, tight margins, and mounting ATO debt are everyday realities.

But the process is available to eligible small businesses across all industries, not just those two.

Who can access this process?

The SBR process is designed for small businesses, and there are specific eligibility criteria. The key conditions include:

  • Total liabilities must not exceed $1 million (unsecured creditors)
  • The company must not have used the SBR process, or been subject to a simplified liquidation, within the preceding seven years
  • Employee entitlements must be up to date
  • Tax reporting obligations must be up to date (though the tax debt itself can be included in the plan)

If you’re unsure whether your business might be eligible, that’s exactly the kind of question a business recovery professional can help you answer.

The cost of doing nothing

For many business owners, the instinct is to keep going, get your head down, and hope that things will improve.

But in our experience, that is rarely the case.

Unmanageable debt doesn’t resolve itself. It compounds. Interest and penalties grow, suppliers tighten their terms, cash flow gets squeezed further, and the stress becomes constant.

The longer you wait, the fewer options you have. Businesses that could have been saved through a structured process sometimes end up in liquidation simply because the director waited too long to have the first conversation.

The SBR process exists precisely because the Australian Government recognised that small businesses needed a way to restructure and survive, rather than simply being wound up.

Where to from here

If you’ve been asking yourself whether your business can survive, the answer may be more encouraging than you think.

Business Recovery Helpline offers free, confidential business strategy assessments designed for exactly this situation, with no obligation.

There’s no sales pitch, and absolutely no judgement.

It’s a structured conversation with an experienced business recovery professional who can help you understand your position and your options.

You can request a free session by answering a few quick questions on our assessment page:

Request your free business strategy assessment →

This article is for general information only and does not constitute legal or financial advice. Eligibility for small business restructuring depends on individual circumstances, and outcomes are subject to creditor approval. If you require advice specific to your circumstances, please consult a qualified legal or financial professional.

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