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Tina Samuels

Tina Samuels writes on social media and small business topics for sites such as Reputation.com.

Tina Samuels has written 23 articles for SB Informer.
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Can My Small Business Avoid Bankruptcy?

Tina Samuels

June 10, 2013


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There are many small businesses that try to make a go of it each year, many of which fail within their first five years.

There are some that say it is just luck of the draw whether your business will succeed or fail, however there are some very real things that you can do to keep your business out of bankruptcy.

If you are teetering on the edge and almost ready to give in to your debt and file the papers for bankruptcy, consider these options:

Hire a Consultant

This may seem foolish in that if you don't have much money and are thinking of bankruptcy, why would you want to spend MORE money.

However, consultants can come in and see the company in a new perspective, give change options, all the while keeping your current staff. They may offer restructuring ideas, or see the need to change certain areas. There are many times that hiring a consultant can be just what the business needs to stay in the black.

Make Some Calls

Though it may be something that you dread even thinking about, making calls to your creditors can be a rewarding experience.

Talking with loan officers, contract holders, and lease landlords that you may be close to a bankruptcy can give them a heads up on your situation. They may even offer to lower the amount you are paying temporarily so that you can get back on your feet.

Remember, they'd rather get a smaller amount to help you through it and the opportunity for a longer term higher payment than a few payments and then nothing for the long-term with a bankruptcy.

Up Your Cash Inflow

Sounds easier said than done, right?

If you could get more profits at the snap of the fingers you'd not be in this mess, eh? Well that's not quite what I mean. Ask your vendors for different terms on their products, perhaps for a longer payment term. Create incentives for your credit customers to pay off their items early. This makes you give out less money and take in a little more money than usual, creating a short-term cash inflow.

Talk Consignment

Some vendors are agreeable to providing inventory on a consignment basis.

For -x- amount of time you can get -x- amount of dollars worth of product without a payment. If it sales, you send them the money, if it doesn't, you send them the product. This is a great way to test new products in your store without giving up the funds for them, and its a way to fill your shelves without necessarily having all the cash to do so.

Small business doesn't have to be on the fine tightrope of success and bankruptcy.

By taking these helpful tips and tricks, you can help your business avoid legal troubles and stay afloat through those rough first years.


                   



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