Here in California, there are many small business owners, and with today’s competitive market, it’s not uncommon for those businesses to run into trouble. Unfortunate things like falling victim to product defects, employment lawsuits, or financial mismanagement can all derail a business, and it’s understandable to consider shutting up shop when things aren’t going well. However, if you are considering closing your company’s doors, you should first go through all the facts and figures, preferably with a business attorney to help you.
Here are four essential questions to ask yourself, and your lawyer or financial advisor, before you take any steps towards terminating your business:
Sometimes, it’s hard to pinpoint an exact source of the problem, so sit down with your books and run the numbers. Was there a certain employee causing an issue? Was it a vendor or manufacturing problem? Was the business budget reasonable and honored by the management? Take a hard look at what happened, and play detective to identify the main cause or causes.
In some cases, companies fall prey to deceptive business practices like intellectual property theft or unfair competition, causing their sales to dip or their public image to be tarnished. It’s critical that you identify any possibilities that your business rights were violated, so you can work with an attorney to get the justice you deserve.
Too many business owners in trouble don’t consider the possibility of legal restructuring of their companies, in order to give them another shot at success. By rearranging some of your debts, assets, and business structure, you may be able to avoid bankruptcy and keep your doors open. An experienced business attorney should be able to tell you if you qualify.
After other options are explored and other resources are depleted, commercial bankruptcy may be a viable road to recovery for a failing venture. There are many different options within bankruptcy, depending on your business’s assets, debts, and shareholder/lender responsibilities, so work with an attorney to see if bankruptcy is a good choice for you.
When you are ready to talk to the experts in San Francisco business law, reach out to Primum Law today. Ask for your free consultation to get started!