With recent dip in the market and companies trying to stay afloat after that, it is no surprise that in the last few years many organizations have had to file for bankruptcy as the only alternative to survive, even though many of them fail to do so. The truth is that this is a reality that cannot be completely avoided, but it can certainly be curved so your company doesn’t become another statistic.
Understanding the risks, your options and considering the indicators that your business may be hurting could just be enough to stop having to restructure or even lose your company. The main point here is to be able to see things before it is too late and to make the necessary adjustments to survive in a world that does not forgive careless mistakes.
The number of professionals that ignore recommendations is entirely too high and you would be surprised at how some companies who seem so strong at some point, are unable to recover when adversity comes knocking at the door. Today in Suzzanne Uhland’s blog, we want to talk about what some of your options are and how you can avoid leading your business through the path of bankruptcy.
One of the first things to consider is to accept the fact that while it may sounds scary, bankruptcy is a viable option when things go south; in some cases, it can be the most sensible option actually. This choice is not only the best alternative when it comes to the business itself, but also for the mental health of those involved with running the organization. Sometimes bankruptcy can provide closure and it can be quite therapeutic to close the cycle and move on to what comes next. The choice is not something that you can make totally on your own, and the best way to decide is by soliciting the aid of a financial consultant to take a look at the books and decide if bankruptcy is, in fact, the best course of action to follow. Remember that bankruptcy doesn’t mean giving up and accepting failure; it means taking a step back and learning from your mistakes so you can come back stronger.
A business plan is something that must always be current and to which full commitment must be given at all times. This type of concept is instrumental for managing a company correctly and it can make the difference between the success and failure of any business endeavor. A proper marketing and business a plan is like a blueprint that can help you navigate aspects of budgeting, sales, operation, logistics, and finance. Business plans help you steer your ship in the right direction and having one is just as important as maintaining the one you have updated according to all the changes that affect the market everyday.
The balance of inflow and outflow of cash is absolutely necessary to maintain as a minimum requirement for running a successful business. If financial conditions aren’t strong, then a company will not be able to survive when outside sources like unpredictable economic times, affect the business environment. Cash flow has its own ebb and flow, but that doesn’t mean that it needs not to be kept under control, and that is the job of a good chief financial officer.
Financial reports should always be accurate, proactive and timely. They should be presented being careful that interpretation doesn’t skew the information given so that everyone is on the same page and is able to react accordingly when things are not going the way they are supposed to. Transparency is equally important and it is necessary in order for reports to truly reflect what is going on. People sometimes try to cover things up with the hopes that they can somehow fix it without having to worry the higher ups, but nothing could be farther from healthy practices in a business environment. There is a reason why a company is a team and the entire team has a right to know what is going on right from the start.
Always be honest with those around you and that includes you. This is especially important because there is a huge sentimental component when it comes to business and even sometimes when we know things are going south, we refuse to pay attention and fail to do what is right. It is important to accept that sometimes you need an expert and that calling out for someone to take a look at things and used their expertise to help your operation is the right call. Hiring expert advice is a great investment and should never be seen like unnecessary spending but instead, proof that you care about your business and about doing everything that is necessary to succeed. Seeking the counsel of professionals is responsible and commendable in all cases.
* Featured Image courtesy of Breakingpic at Pexels.com