Thursday, December 8, 2022

Bankruptcy Is Killing Too Many Businesses: The Best Solution for Entrepreneurs

Bankruptcy Is Killing Many Entrepreneurs
While some entrepreneurs might have been planning to close their businesses and try to get the maximum amount of cash out of them and their assets, a bit of warning to entrepreneurs who are thinking about bankruptcy. People with businesses in the middle of closing or going bankrupt will often not make the same mistakes that those who are closing a company or going bankrupt will make. People who are making a bankruptcy plan can protect themselves and prevent as many problems as possible when their businesses go into administration or bankruptcy. They can make the best possible financial decisions that will protect their business or their personal assets in the event of business failure.

The Best Solution for Entrepreneurs
Bankruptcy Is Killing Too Many Businesses: The Best Solution for Entrepreneurs The biggest impact of bankruptcy on the entrepreneurial community is its stifling effect on new businesses. Debt can often prevent even the best plans from taking off because entrepreneurs are forced to remain “waiting out” the bad economy and bankruptcy regulations before putting their entire financial future at risk. According to the National Association of Entrepreneurs (NAE), nearly 40 percent of all new small business venture founders “shut down, liquidate or go out of business” after their business was unable to meet financial obligations as a result of Chapter 7 bankruptcy filings. These staggering numbers seem to be at odds with the assertion that entrepreneurs are built to succeed in tough times.

File bankruptcy
Entrepreneurs and business owners face financial pressures and concerns nearly every day. The age of the entrepreneur is over, so we must deal with financial realities before moving on to new opportunities. Too many entrepreneurs opt for a life of bankruptcy, even if bankruptcy is the worst thing that can happen to a business. Bankruptcy is a very dark place, but it’s the only solution for bankrupt businesses. Don’t be afraid to have that conversation with your banker, lawyer, or accountant. In today’s tough economy, there are plenty of people who will help you navigate bankruptcy. Take the time to plan for it. Set a specific goal of what you want to accomplish when you file bankruptcy, then execute on that goal.

Hire an expert to help with financial management
Take a moment to think about all the people you know who are struggling to make ends meet. Maybe it’s an older family member, your neighbor, or maybe it’s yourself. The numbers are staggering: more than 11,000 businesses close every month, and over 10,000 family-owned businesses have filed for bankruptcy in 2017 alone. In many cases, when a business files for bankruptcy, the lender demands the entire business as part of the repayment plan. In these cases, the business ceases to exist. This ladies and gentlemen is the reason bankruptcy can devastate a small business’ employees, vendors, customers, and community. Yet, most small business owners don’t know the consequences of filing bankruptcy.

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