There are several steps you can take to try to avoid bankruptcy and keep your business afloat:
- Create a budget: Review your finances and create a budget that includes all of your income and expenses. Make sure you have a clear understanding of your cash flow and where your money is going.
- Reduce expenses: Look for ways to reduce your expenses, such as cutting back on unnecessary expenses, negotiating with vendors for better rates, and finding more cost-effective suppliers. You may also consider whether you can reduce your payroll and have various workers as part-time employees.
- Increase revenue: Explore ways to increase your revenue, such as increasing prices, expanding your product or service offerings, or marketing your business more aggressively.
- Manage cash flow: Keep a close eye on your cash flow and make sure you have enough cash on hand to cover your expenses. Consider getting a line of credit or a business loan to help bridge any gaps.
- Seek professional help: Consider working with a financial advisor or business coach to help you develop a plan to get your finances back on track.
- Consider bankruptcy alternatives: If you are unable to manage your debt, consider alternatives to bankruptcy, such as debt consolidation, debt settlement, or filing for a reorganization under Chapter 11 of the bankruptcy code.
Remember that preventing bankruptcy requires proactive and ongoing effort to keep your business finances healthy. Regularly monitoring your finances and seeking professional help when necessary can help you avoid financial difficulties and keep your business on the path to success.
About the Finkel Law Group
Finkel Law Group, with offices in San Francisco and Oakland, has more than 40 years of experience assisting our clients navigate federal bankruptcy laws and state insolvency statutes. Our attorneys have the experience and expertise needed to help you and your management team successfully complete the liquidation or reorganization of your corporation, partnership or limited liability company.
When you need intelligent, insightful, conscientious and cost-effective legal counsel to assist you with the bankruptcy and reorganization issues confronting your company please contact us at (415) 252-9600, (510) 344-6601, or info@finkellawgroup.com to speak with one of our attorneys about your matter for a cost-free consultation.