Here's why filing
for chapter 11 may be wrong for your business
Small business failure is often attributed to lack of knowledge – plain
and simple. In fact, if more small business owners were aware of
the programs and help that is available to them, you would hardly
see any businesses closing their doors for good! Unfortunately, the “insider
secrets” have remained just that: secrets. As a result, small
business failure occurs around us every day.
The #1 Reason for Small Business Failure: Poor Decision Making While
Running the Business
Sadly, the main reason for small business failure is that many small
business owners make poor decisions that run their business into
the ground. Of course, these business owners didn’t mean to
make bad decisions. On the contrary, they believed they were making
good ones. But, because of their lack of business knowledge, their
decisions ate away their business profits causing it to go broke.
For these reasons, it is important to gain as much business knowledge
as possible before opening your doors.
The #2 Reason for Small Business Failure: Thinking Bankruptcy is
the Answer
After watching their business slowly fall to pieces, many small
business owners believe they have no other choice but to file for
bankruptcy. This almost inevitably leads to small business failure.
Business owners mistakenly believe that they can file for bankruptcy
and still keep their business. While this is true in theory, nine
out of ten find that they eventually have to liquidate the business
when the bankruptcy hearing is over to pay off their attorneys and
other left over fees!
Ways to Avoid Small Business Failure
The best way to avoid small business failure is to get educated.
The more knowledgeable you are when going into business, the better
prepared you will be to set up an effective business plan and to
make important financial decisions. Similarly, if you do hit a financial
roadblock (which you won't if you took the time to get educated),
you will know about the many alternatives to bankruptcy you have.
Just be sure the books you read about business options are written
by someone who has knowledge and experience in helping small business
owners keep their business financially stable. Or, better yet, find
a book authored by someone who has experience helping business prevent
filing bankruptcy. That way, you know the techniques you use for
your business are proven to be effective.
How
to fix your failing business and avoid an expensive chapter 11
filing
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