If Your Small Business Is in Financial Trouble, Speak With Denver Bankruptcy Lawyers Wink & Wink Today
Starting your own small business is a dream come true for entrepreneurs. After years of thinking about it, planning, and saving up money, it’s finally a reality! And nothing beats the excitement of the first sale.
But if your business is struggling financially, that dream can become a nightmare.
Maybe sales were good for a while, but then a new competitor moved into town and customers flocked there instead. Or maybe business was never all that good to begin with. Each day at work can become another day you fall further and further into debt.
It’s normal for businesses to have some debt. Even the top companies in the world have debt. And many businesses simply take a few years to see revenue exceed their expenses. It even took Amazon several years to become the mega-success they are today.
But if your small business debt is spiraling out of control, and you can’t get a grip on it, you may be lost on what to do. Is the only option bankruptcy? And is that the smartest option?
If your small business is suffering from too much debt, it’s time to speak with a bankruptcy lawyer, such as Wink & Wink of Denver, Colorado. They’ll assess your situation and help you determine your best options, whether that’s bankruptcy or something else.
While bankruptcy can be a smart option, let’s look at some tips and tricks for avoiding small business bankruptcy.
Tip: Collect Outstanding Payments
Does anyone currently owe you money? Is there any way you could collect it now?
Let’s say you’re doing a big project for a client that will take several months. Rather than waiting until the end to invoice them for the full amount, is there a way to get some of that money now?
Could you also get prepaid for any work, such as a down payment toward future work? If you offer a discount for prepayment or lump sum payment, customers may happily agree to it.
Tip: Hire a Business Lawyer
As a small business owner, you’re probably signing a lot of contracts or legal documents. Additionally you may be trying to copyright or trademark your work. Plus, there are labor laws, zoning regulations, and more to consider.
Having a skilled business lawyer could help ensure you’re doing things legally and not making costly mistakes or agreeing to unfair contracts. Plus, they can help you potentially avoid lawsuits or other tricky legal situations that could worsen your debt.
Tip: Hire an Accountant
A highly-skilled accountant keeps an eye on the finances and can help you identify extraneous expenses or opportunities for income.
While you may be okay at watching the books, someone with a strong accounting background and education could help get your small business finances in shape. Accounts can even set goals for improving your financial situation. Hiring someone with accounting expertise could be just the thing to get your debt problem under control.
Tip: Speak With a Bankruptcy Lawyer
Bankruptcy lawyers help people reduce or eliminate their overwhelming debt. This can be through filing for bankruptcy or debt settlement.
Even if you ultimately don’t pursue filing for bankruptcy, speaking with a bankruptcy lawyer can help you understand your options for easing your staggering debt so you can then make the smartest choice.
For more than a decade, Wink & Wink, who serve the greater Denver, Colorado area, have helped hundreds of clients, including small businesses, get the debt relief they so desperately need.
Tip: Renegotiate Contracts
If you’ve signed contracts that require you to pay a certain amount of money toward a debt or service, you may be able to renegotiate those contracts to ease your overwhelming debt.
Hopefully you’ve formed good relationships with the vendors you work with. Maybe they’re willing to charge you less or reduce the requirements for you to be able to pay off a debt over a longer period of time or at a lower rate.
Presumably they want to keep your business, so they may be willing to work with you on your debt rather than potentially lose you as a customer, or have you simply not pay it at all.
Tip: Reduce Staff
Firing or letting staff go can be a painful experience, not just for them but also for you.
But if your business is being crushed by crippling debt, you may need to let some employees go to ease your financial burden. Although you need to cut expenses, now, remember that if you get your debt under control, you may be able to rehire your team.
Another option is enacting a temporary pay cut, such as 10 percent, or temporarily furloughing team members. This can similarly be painful to do but can be a way to keep employees if they’re willing to work for less. When things improve, you could return everyone to their full salary again. Be sure to get advice from an employment lawyer before making decisions like these.
Tip: Consider Small Business Bankruptcy
Bankruptcy does not necessarily mean the end of your business. It similarly doesn’t mean that your financial life is ruined or that you’re doomed to a life of poverty the rest of your life. Not at all!
Sometimes filing for bankruptcy can be the smartest thing to help you and your small business. And despite the misinformation about it, bankruptcy can be the fastest way to rehabilitate your credit.
If your small business is suffering from too much debt, speak with Denver bankruptcy attorneys Wink & Wink to understand your options. They’ll review your situation and help you decide on what’s best for your small business. The time to take action is now before your predicament worsens.