4 Steps You Can Take When Your Business Is Going Under – Guest Post
No one wants to deal with a business that is going under. If you find that your own business is not doing as well as it should, there are a few things that you can do to recover a positive cash flow. Assessing your business is critical in helping you to determine what is best for the long run. Decisive actions will help you to make the transition from financial difficulty to profitability or make closing your business easy and effective.
1. Perform an overall analysis of your business – This is the first step in determining if there is still room to bring your business head above water or if you need to close. Determine why your cash flow has turned downhill and if there is a feasible way to bring it back up. Once you know why your business is not profitable, you can determine the best way to handle it. You may have to take some drastic steps to ensure that your cash flow problem is solved.
2. Get support – You do not have to deal with a drowning business on your own. You can seek the assistance of auditors, legal advisors and even friends to help you along the way. Having a third-party perspective can help you to see things that you may not see on your own.
3. Initiate needed changes – If you truly want to save your business, you may need to make some hard decisions. Cut whatever expenses you can to create a positive cash flow. You may have to file bankruptcy, lay off your employees or make other changes in order to create profitability.
4. Close your doors – You may not want to but if it comes down to this, try to accept your business closing. Sometimes it is simply for the best. Look at your financial obligations and see if there is any chance of meeting them if you stay open.
This article was written by Real Business Recovery, a team of award-winning insolvency practitioners specializing in CVA.