Is it irresponsible to keep the business going when I know things are tight?

Whether it's irresponsible to keep the business going when things are tight depends on whether you have a realistic, evidence-based prospect of recovery and whether continuing to trade is making creditors' positions worse. Operating a business through difficult periods is not inherently irresponsible—many successful companies weather temporary cashflow problems, seasonal downturns, or economic shocks. What matters is whether you're being honest with yourself about the company's viability and whether you're protecting creditor interests. It's responsible to continue trading if: you have a genuine recovery plan backed by evidence, such as confirmed new contracts, refinancing in progress, or cost savings being implemented; you're not taking on new debts you know you cannot repay; you're maintaining open communication with key creditors about temporary difficulties; you're seeking professional advice about your options; and continued trading is likely to preserve value and improve outcomes for creditors compared to immediate closure. It becomes irresponsible when: you're simply hoping something undefined will improve; you're taking deposits for orders you know you probably can't fulfill; you're incurring new debts when you're already unable to pay existing ones; you're prioritizing your own salary or connected parties over legitimate creditor claims; or you're ignoring professional advice that insolvency is inevitable. The legal test for wrongful trading is whether there was 'no reasonable prospect' of avoiding insolvent liquidation—if you honestly believe and can demonstrate that recovery is possible, continuing to trade may be justified. However, directors often suffer from optimism bias, convincing themselves that improvement is around the corner when objective evidence suggests otherwise. This is why seeking independent professional advice is crucial: an insolvency practitioner can provide an objective assessment of whether your recovery plan is realistic or whether you're in denial about inevitable failure. Remember that once insolvency is likely, your duties shift from serving shareholders to protecting creditors—this means if continued trading will increase the debt burden without realistic prospect of repayment, you must act to minimize creditor losses even if that means closing a business you've poured your heart into. The responsible course when things are genuinely tight is to immediately prepare updated financial forecasts, assess whether the pressure is temporary or permanent, seek professional insolvency advice, communicate honestly with major creditors, and document your decision-making process thoroughly so you can demonstrate later that you acted in good faith based on the information available.