Question. How many companies do you know that want to go bankrupt? Zero. Not a single company gets started with the thought that they will not succeed and have to declare bankruptcy. A business gets off the ground because an entrepreneur thinks he or she has the next great idea to be successful. However, there isn’t any guarantee that a company will make it big. Many companies are forced into choosing which type of bankruptcy they want to file for after a hard fought battle.
Now, does that mean that bankruptcy is the end of the line for a company? The easy answer is undoubtedly and a resounding, “Yes!”. The reality is quite different, however. With some hard work and smart decisions, companies can come back from bankruptcy and make it big (just ask Apple). Suzzanne Uhland is here with some thoughts on what companies can do to deal with bankruptcy procedures.
1. Come to terms with going bankrupt
Just like in twelve-step programs, the first thing you must do is recognize that the company is no longer solvent and that after considering all other options, bankruptcy is the way to go. This is usually the hardest thing to do since no one is keen on admitting failure. Human nature is kind of stubborn that way. However, until a company comes to grips with going bankrupt, it can’t even begin to speculate how to come back strong from bankruptcy and have success.
2. Contact bankrupt litigation experts to get you on track
Even though we live in a do-it-yourself world, bankruptcy litigation proceedings are not something you want to go at by your lonesome. You definitely need to get in touch with a firm with experience in helping a company file for bankruptcy as there are different types to choose from and the company must pick wisely if it expects to ever get back on the horse. Ideally, a company should look for a firm which has handled similar cases to its own and one with a proven track record of helping companies salvage as much as possible while still meeting financial obligations after filing for bankruptcy. The litigation firm will help a company set up a plan to pay any settlements to suppliers and employees. Thus, there will still be a fighting chance for the company to come out on top.
3. Make a list of what went wrong and keep it with you
The last thing you want is to repeat your previous mistakes. Once you begin bankruptcy procedures, create a list of the things that led to the company going bankrupt. Keeping that list with you will remind you of what to avoid and where you also have opportunities to grow. Yes, that’s right! Knowing what you did wrong gives you a great starting point of what you need to improve to have success with your company once again. You can cross things off the list once you are sure you have turned those opportunities into strengths. Once you’re done crossing everything off the list, don’t get cocky. Instead, keep working hard to identify what other things can go wrong and make a new list to keep with you. By repeating this process, you will be creating a strategy to always be efficient and maximize the resources of your company.
4. Never lose hope
Some of the biggest brands have gone bankrupt and they have managed to come back. Resiliency is a trait that every success story has. A company and those in charge of it can never give up hope. If they trust the plan designed to help the company come out of bankruptcy and do their share to keep everyone focused, then there is a reason to believe a company can be as strong as it once used to be. In fact, it should be a lot stronger given that the head honchos are much wiser and they now have experts advising them on what to do and what to avoid.
Before a company can dream of being successful after bankruptcy, it must first come to terms with several things. The first, and most important, is to admit filing for bankruptcy is the way to go. Next, the company must bring on a firm which will help it file for bankruptcy and set up a plan to help it get ahead. Afterwards, keeping a list of things to improve will give the company a beacon to follow. Finally, everyone involved in the company must keep faith alive in terms of believing they will come back strong from bankruptcy. Filing for bankruptcy does not mean the end of the world. A company can still obtain success if it is diligent and realistic about what happened and what it needs to do to avoid tragedy from striking twice. Here’s to second chances!
* Featured Image courtesy of atomicity at Flickr.com