Ce diaporama a bien été signalé.
Le téléchargement de votre SlideShare est en cours. ×

4 practical ways to avoid bankruptcy

Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Publicité
Chargement dans…3
×

Consultez-les par la suite

1 sur 9 Publicité

4 practical ways to avoid bankruptcy

Télécharger pour lire hors ligne

how can companies avoid having to throw in the towel and giving up on their dreams? Suzzanne Uhland is here with some recommendations on what a business should do to avoid going bankrupt.

how can companies avoid having to throw in the towel and giving up on their dreams? Suzzanne Uhland is here with some recommendations on what a business should do to avoid going bankrupt.

Publicité
Publicité

Plus De Contenu Connexe

Diaporamas pour vous (20)

Similaire à 4 practical ways to avoid bankruptcy (20)

Publicité

Plus par Suzzanne Uhland (20)

Plus récents (20)

Publicité

4 practical ways to avoid bankruptcy

  1. 1. 4 practical ways to avoid bankruptcy By Suzzanne UhlandImage courtesy of Pixabay at Pexels.com
  2. 2. Every business in history has started off the same way. Something clicked inside the founder’s head and inside a brilliant idea came to light. Afterward, that idea started to materialize. First, with a business plan, a mission, and a vision. Then gathering enough capital to get the idea up and running. Once the founders collected the money they needed to start the company, the next task would be setting up a location, purchasing equipment, and hiring employees. All that was missing was the grand opening and to work hard to make sure revenue kept growing and the debts kept going down.
  3. 3. That’s the ideal, of course. However, most things don’t turn out to be ideal. This fact is especially true when it comes to starting a business and withstanding enough time to get ahead. As a matter of fact, less than 50 percent survive the first four years. In the end, many great ideas end up in bankruptcy court. So, how can companies avoid having to throw in the towel and giving up on their dreams? Suzzanne Uhland is here with some recommendations on what a business should do to avoid going bankrupt.
  4. 4. 1. Collect and spend funds wisely when looking to expand. This seems like a no-brainer, but sometimes the obvious is what we neglect to pay attention to. It’s normal for a company to think about expansion once they start generating some revenue on a consistent basis. Based on a steady stream of profit, a company might make the decision to take out a loan thinking they can fulfill bank payments. Wishful thinking can only get you so far. In order to avoid a debt that will be impossible to pay in the future, a company should first set aside some of the profits so that they can start gather funds that can go towards their expansion plans in the future. It might take some time, but like Grandma used to say, “A penny saved is a penny earned.”
  5. 5. 2. Try crowd funding before loan signing How many startups do you know that made it thanks to crowdfunding? In today’s digital age, it has become one of the best ways to raise capital without having to sign over the company as collateral. People want to invest in great ideas, they don’t necessarily have to come from a new company. Small and established businesses can look to crowdfunding to help raise enough money to get their new idea off the ground. There’s really nothing to lose by turning to a community to help fund your next great idea. Furthermore, crowdfunding will at least give you some capital to make sure you don’t have to take a considerable bank loan that could bleed your company dry.
  6. 6. 3. Shake things up a little Many companies fail because they neglect or refuse to evolve or try new things. That fact is often related to those in managerial positions not willing to try new things and being set in their ways. Management styles have an expiration date; sooner or later, there needs to be a change in how things are run. It’s not the same to run a business or make decisions when a company is starting than when a company is established. The challenges are different. When a business starts to stall and not generate profit, it might be time to consider new management or moving people around to give the business some fresh input and new ideas.
  7. 7. 4. Learn from others mistakes There are many cases of businesses that went bankrupt. Chances are that there a plenty of companies that were in your industry. You would be wise to search for bankruptcy cases of companies in your market and analyzing what lessons can be learned from bankrupt businesses. Going over previous bankruptcy cases will give you helpful insight into what you definitely need to avoid in different aspects of your business that will help you stay afloat and avoid filing for bankruptcy.
  8. 8. No company intends to go bankrupt, but many don’t heed the signs. Companies must be aware of how they are spending and raising funds within their business. Additionally, they should not be stubborn regarding management styles. If something that worked in the past stops working, then they should not fear changing things up and bringing in someone who can offer a fresh perspective. It could be through a change at the top or by bringing in a consultant. Finally, they should avoid repeating history. Taking the time to analyze what others did wrong could help a company understand what it needs to do to avoid going broke and having to give up on a once promising dream.
  9. 9. Bankruptcy can be avoided if companies apply a little common sense and are open minded enough to not be set in their ways. Here’s to many years of success and profit! Cheers!

×