It was once your dream to own your business and be a staple in the world and make an impact. Anyone who enters into the business arena knows the risks they’re taking on. Even if they don’t quite fully understand the legal wording, they know that they’re name and finances are on the line. That’s why many small business owners have their eyes set on becoming a limited company. This means you take less of a hit when things go belly up since you are limited from major financial implications. However, this is only relevant when you have multiple investors, shareholders and business partners. If you’re going it alone, you hold all the risk yourself. This means that if things come crashing down, you’re the one left holding the bag. It’s not pleasant to have to shut things down when you worked so hard on them. But sometimes a business model doesn’t work or it has holes in it that only appear after a certain period of time. You don’t have to go down with the ship, despite being the captain. You can grab several lifeboats to save your neck and reputation.
Don’t break down and ignore
We’re attached to the businesses that we own and founded. It’s only natural that we feel that one of our children had died because of our negligence and lack of skill. It’s important to remain calm and not ignore any problems. It’s not uncommon to go through a mental breakdown but you should look for support to help you in this horrible time. Talk to family and friends, and they will be your emotional pincushion. Even better is to talk to fellow business owners and try to get their professional opinion on where you went wrong. You never know someone successful might take pity on you and inform you of what you did wrong if you talk to them about the key areas of failings. Next time you a running a business, their advice will come in vital, as to not repeat the same mistakes.
Salvage your staff and more
Be quick as a hare, and start to salvage what you can. Your employees will soon be out of a job since the company is collapsing. However, you should tell them well in advance of what is going on and what is due to happen. Give them financial packages if those are in their contracts, and end on good terms. Talk to them like about the achievements you made together and how you hope to work with them in the future. Start to sell off your equipment such as machines, factory equipment, office supplies, furniture, computers and even contracts if you can.
Filing it in
For largescale debt you will need to file bankruptcy once you can no longer make payments due to your business collapsing. This could be loans, private investor money and more. Hire a chapter 13 bankruptcy lawyer that can essentially make your large debt into a debt consolidation. They’re a working-class group that specializes in helping working class people, so a small business owner is something they deal with regularly.
An awful sinking feeling tries to consume you when your business begins to go under. Don’t break down and freeze, but salvage your professional relationships and sell off the things you no longer need. Get some expert help from lawyers that can make the transition from chaos to order when a business collapses.