Businesses fail for all kinds of reasons. Often it’s due to an inability to read the market, bad financial handling or even a scandal that puts the company under.
As a business leader, it can sometimes feel that this failure will lead you to go down with the ship. Sometimes this is so. Other times, you can salvage what there is and walk away without too much harm.
Of course, this is not a victory. It’s likely that your firm will have forced many job losses, lost plenty of innovative ideas and potentially lose out on ever being reformed again.
It can cripple your business reputation and even your motivation to try again. However, when in survival mode, it’s important to look for the positives in the cleanup, as there are some to experience. We’d suggest they are as follows:
Selling all the assets you have in your business can be important. It’s essential not to hold on to anything, as an income stream is all you might need right now.
If you have plenty of stock laying around, you might desire to sell all of that at a reduced price. You might decide to sell or rent out some of your equipment or sell your professional space.
You might find a place for all of your IT equipment, or even rent your parking spaces if you still have a right to them. There are likely to be more assets in many places you look.
Also consider if you can gain a refund from cancelling certain purchases, such as a long-term order you have paid for in advance. With this effort, you slowly begin to regain lost assets, and can at least begin to make some headway towards paying your debts.
When it comes to insolvency, sometimes you might need a little help. With firms such as Neil Davies & Partners Solicitors, you might be able to negotiate with your creditors with much more finesse.
This is essential, because often when experiencing a business death of this sort, it’s easy to make false promises, and generally act sloppy in communication thanks to all of the pressure you are under.
With professionals able to navigate this legal minefield, you will be able to start making some headway. This might mean they buy you time for cash-flow insolvency as you sell assets, or even to continue with balance sheet insolvency and continue to work in order to make good on guaranteed profitability, thus paying back creditors on a more appropriate timeline.
While it might not be the case that a business death is a good thing, sometimes the connections you have made can be salvaged.
Not all businesses failures are due to incompetence, and sometimes your skillset might still be valued. This is why burning bridges at this stage is a bad idea, no matter how badly you might want to.
It could be that you find yourself with a job at another firm, which might be critical at this time in your life. Often, people you rely on will help you out of these messes the most appropriately, or at least make the journey that little less stressful.
With the willingness to salvage your business connections, you might experience this in a positive light.
A business failure is often a horrible experience. However, it’s not always one hundred percent terrible, and as such these simple efforts could help you salvage some of your losses.