Restoring Financial Viability - Options For the
Business Owner
Coping - This is the "option"
most commonly employed by owners, managers and employees of businesses
of all sizes. For lack of a better wording, "coping" is
simply the process of "going on hoping" that something
will change for the better, that a new "better client"
will walk in the front door, or the sales will upturn at some point.
Though a streak of good luck does sometimes happen,
all too often the result of coping is more coping, lower staff morale,
general lowering of company standards, and increased stress,
which creates more need to cope.
Sound familiar? Unfortunately, in today's economy, this scenario
is all too familiar to a great many businesses that eventually file for
Chapter 11 bankruptcy, or that sell a nearly-failing business at a loss to move
on.
For the vast majority of businesses suffering economic hardship,
there are much better options.
The next one on our list -
Fighting The System - Probably
another form of "toughing things out" is
finding fault with and battling against the banks, vendors,
and other factors that may be seen as the cause of the
downturn of business such as the political scene or the success
of a competitor. Though this point may sound a bit philosophical,
this is nevertheless a very real scenario for many struggling business
owners, and is usually quite a lot better (perhaps even a bit more
satisfying) than just struggling. However, yelling at bankers
doesn't solve very much as many of us have learned.
The bottom line in these examples is: failure to take
effective action accompanies a tough lesson - the
only way out of the trouble is getting through the trouble. Yet due to long traditions
of banking and lending, debts are not commonly forgiven; and attorneys
reap the lion's share of benefit from any actions they are retained
to handle for the entrenched business owner.
Negotiation of Settlements - Our
option is not an easy one either. It doesn't sugarcoat anything.
But by negotiating for our clients, we routinely reduce the danger
factor sufficiently to allow the business owner breathing
room to accomplish the necessary steps to recover and return
to a viable condition.
Of course, there is the option of Chapter
11 Federal Protection. There are circumstances where this
is the best, or possibly the only, option. The costs are huge in
comparison to the benefits. If you are considering this as your
option, please discuss the situation with us before making a final
decision. We will accept your case on the basis that we feel we
can both win. We want to to give you our best assessment
of the chances of your success. We are in the business of keeping business in business.
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