Establishing a business is an entrepreneur’s dream. Every business owner, however small or large the business may be, should be prepared to face tough challenges. They will also need to solve different kinds of problems to sustain the success of their venture.
One of the major reasons that a small business fails is a lack of money – be it capital or profits. The initial investment that you put in the company should over at least two years of the running costs at the very least. Profits can come later. Bad planning and management of your finances can lead to serious consequences and the worst of them all is bankruptcy.
Filing for bankruptcy if your business has suffered serious financial losses that seem impossible to recover may cause you to think that your career is over. While it is certainly not a favourable situation, you must keep in mind that you can have your career and life back even after bankruptcy.
Many people who are successful business owners have faced financial crisis at some point in their career. The reason behind their success today is perseverance and the will to learn and plan your future business venture accordingly. This is not an impossible task and you must use your failed experience at business as an impetus to venture further ahead.
Business bankruptcy is of two types i.e. Liquidations or Reorganizations. Depending on the form of your business you can file for bankruptcy under Chapter 7, Chapter 11 or Chapter 13.
When filing your bankruptcy, you might be faced with numerous questions about each of the above chapters. You should know about their advantages, disadvantages and which is the correct chapter for you to file for bankruptcy. There are various bankruptcy attorneys http://mydebtadvisors.com/milwaukee-wi-office-locations in Milwaukee, WI who can help you with this information and everything else you need to know.
While the reasons for bankruptcy may be many, here are a few tips that can help you run a successful business ever after filing for bankruptcy:
1. Start afresh:
While you are attempting to start afresh, you must start in the best way possible. Starting in a dishonest manner such as by concealing information about your assets or transfer of property in the name of a family member is strictly a no-no. Such actions can amount to fraud and they can have far reaching consequences. You must avoid all such actions that can be harmful to your new business in any way.
2. Have a positive attitude:
Mistakes are an integral part of the learning process. The most important part is to learn from them. You must never let your failures in the past affect your business in the future. Only when you are prepared to let go of the mistakes you may have committed; will you have a mindset that can help you succeed.
3. Prepare and plan well:
The more time you spend on preparation, the lesser the chances of failure. As you learn not to repeat your previous mistakes, you must have a clear idea of your business venture. It always helps to have a chart or plan that is well constructed and consists of all that you need to keep in mind.
Writing down your goals and strategies will help you in achieving them much faster. Also, when you write down your plans, you might also come across things that may have slipped your mind during the planning stage.
4. Take care of employees and customers:
You can never create an organization of happy customers if your staff and employees are unhappy. Only when you take care of employees well, will they be motivated to provide the best service and experience to your customers.
If the employee turner in your company is high, it will eventually be noticed by your customers. Keeping employees happy ensures a low employee turnover, repeat customers and hence a successful business.
5. Separation of business and personal affairs:
As you begin your new venture, it is highly recommended to have a new entity without any connection to the past. It is also important to keep your personal assets and business assets separate. Combining these two can lead to some serious legal trouble and it is a highly impractical and avoidable decision.
6. Maintain good records:
If starting your business again seems like a second chance, then you must make the most of this opportunity. Always make your payments on time and in full. This helps build trust with the people you deal with and it is the start of a great professional relationship.
It is also a great way to try and erase the negative credit history and rebuild your credit and reputation. You can have a process in place to make sure that payments happen on time. It will also help you to keep a check on the flow of cash.
In the end, be prepared to work hard. Getting your business to bounce back is not an impossible task and always keeps the faith that you can do it.