The goal, as someone running a business, is to bring in an income. You want your business to succeed and to continue on to grow into a successful, potentially franchised, opportunity. If things don't go as you plan, though, you could find yourself on the verge of bankruptcy.
If that sounds like your situation, you should be sure before you choose bankruptcy. While some forms of bankruptcy keep your business open, others shut you down permanently. Here are three things to consider before you opt for bankruptcy.
1. Decide if you want your business to remain open or not
The first thing to do is to decide if you want to keep your business open or not. If not, then bankruptcy might be a good choice. If you want to keep it open, your bankruptcy options are limited, but they are available. For instance, a Chapter 11 bankruptcy would give you time to restructure your business, but it is expensive.
2. Decide if bankruptcy is actually necessary
With some helpful accounting and small changes, some businesses find that they can continue to pay off their debts and operate. Even if those accounting changes only free up enough money to keep your business open, you'll then have more time to consider ways to get back into the green.
3. How soon do you need relief?
If you have immediate foreclosure risks, the possibility of garnishments or repossession, bankruptcy can stop these threats in their tracks.
These are three things to consider if your business is in financial trouble. The right information can help you decide if bankruptcy is a good choice for you.