by Jeffrey J. Fanger
Entrepreneurs aren’t the quitting type; otherwise they wouldn’t have made it through day one. But sometimes, bad luck and circumstance conspire against us. Despite their best efforts and wishes, sometimes a business owner is faced with the decision whether or not to close the doors.
Entrepreneurs aren’t the quitting type; otherwise they wouldn’t have made it through day one. But sometimes, bad luck and circumstance conspire against us. Despite their best efforts and wishes, sometimes a business owner is faced with the decision whether or not to close the doors. Given the current deep recession, most business owners have already cut back, and wonder what to do if that’s not enough.
Closing a business is never an easy decision. It feels like quitting, or worse, which is why so many owners delay making this decision until they are deep in a hole. But shutting down a business does not have to mean bankruptcy, and can even improve your personal financial position if it’s done right.
First, when it comes time to make this decision, or even think about this decision, it helps to consult with someone objective who can help you analyze your financial reports, your goals and your options. This person may be able to spot red flags or even opportunities you have overlooked. And they can help you face the tough decisions that need to be made.
If you decide that closing your business is your best option, you still have much work ahead of you to achieve an orderly shut down that will not devastate you and your family with financial and legal liabilities. There are forms that must be filed with the government, taxes to be settled, letters to vendors, and disposing of the business equipment and assets.
What many people don’t realize is that there are often simple actions you can take before you shut down that will protect your home and family. However, if done at the wrong time in the process these actions may be null and void, or even fraudulent.
It may seem anti-intuitive, but paying for help from a lawyer when your business is in trouble is vitally important. I have seen hundreds of businesses that have been assessed huge fees and penalties by the state simply because they were shut down improperly. Failure to check a single box on a form can result in years of headaches and fees.
We have helped our clients to keep their homes, negotiate and eliminate business debts, and handle the disposition of assets. But what we really do is reduce the stress and pressure our clients feel because they know someone is working on their behalf with all of the creditors and agencies involved, so they can move on to whatever is next.
Protect yourself, your loved ones, and your assets. Call Fanger & Davidson LLC at (216) 479-6820 or email us for a business consultation.