Not all businesses are successful.
According to various statistics, up to 90% of all businesses go bankrupt/file for insolvency in the very first two years after being established. Naturally, this is not only because the market is rough and will not treat any newcomer nicely!
As any business bankruptcy lawyer will tell you, most businesses fail because they don’t invest the right amount of time and money in sales and marketing – and then try to blame it on other departments.
Therefore, if you are a business owner worried about your company, here is what you can do to save your business from bankruptcy!
Table of Contents
Getting Proper Advice
Some people say that, if you want to save your business from sinking, you don’t ask for advice from the people that made it sink – this includes you, the CEO, and the management team.
In such cases, your best shot is a business advisor or a business bankruptcy lawyer. They will tell you exactly what you need to do or sacrifice to save your business.
Finally, they’ll help you come up with comprehensive plans and predictions that will let you know whether you should try to save your business or let it go.
Exploring Your Funding Options
After looking for advice in the right places, it is time to assess your funding options. If funding is what you need to save your business, then you should look into potential investors or bank loans.
After all, running a business without a bit of debt is not that bad and the money coming from a loan can help you stay afloat for quite some time.
You will also want to do your best to cut costs and maybe even repay creditors. One of the main reasons why your business may go bankrupt is because of excessive spending. The latter causes cash-flow problems and, out of a sudden, the management team realizes that the company cannot keep operations running with their current cash-flow.
In such a case, it is essential that you do your best to cut costs on equipment, employees salaries, marketing, and any other costs related to operating that can be cut.
A business can easily cut costs by shifting its focus – on the core activities only, on redundancies, or on marketing spend and ways to cut it.
One last thing that you can do to save your business from bankruptcy – or at least gain some precious time that can be used in your favor – is to re-negotiate any contracts that you have with parties involved in your business.
For example, you can modify contracts with banks, asking for lower interest rates, or with your suppliers.
The Bottom Line
When a company approaches bankruptcy, it can be awfully hard for the founders to let it go. In some cases, they will do everything in their power to save it – but, eventually, it will still collapse.
Therefore, you should not act without professional advice on your side – from bankruptcy lawyers, business analysts, and so on. They will be the first people to tell you if you should fight for your business or let it go and try again!