It is evident that starting out a business can be quite challenging especially if it’s your very first time. However, no one can be prepared for all the obstacles that you will face especially when you’re somehow left with the option of filing for bankruptcy.
In the US, the number of businesses filing for bankruptcy has been increasing every year and the main cause isn’t because of reckless spending but mostly because of financial hardship from individuals who weren’t ready to deal with major expenses such as unemployment and expensive medical bills. Sure enough, you may want to continue your business, however, you can only do so much. Here are tips on how you can keep your business alive despite filing for bankruptcy.
- Continue business operation as usual
One of the options that will always be available for you is that you can do an Individual Voluntary Arrangement (IVA). This is one of your formal alternative wherein borrowers like you can arrange a binding payment agreement with your creditors. This could mean that you’ll be paying a fixed amount over a period of time in order to keep up with your debt, or maybe it could mean that you will be arranging for a lower debt settlement.
This, in itself, is your best option as it allows you to run your company despite filing for bankruptcy.
You can start this by negotiating with the creditors in order for you to come up with a solid arrangement when it comes to the payment terms. It’s very important that you keep your communication open with your creditors as to keep their trust and confidence in you.
- Be discreet
It is crucial that while you’re filing for bankruptcy, you’re not shouting it into the world just how much you’re in a difficult place as it can affect your sales greatly. Bankruptcy, for other people, can only mean the following:
- You’re not satisfying your customers with your goods and services
- Your business has bad management
- Your business did not withstand the test of time
- Your business is no longer great as how it used to be
Although it is true that some obstacles in life cannot be predicted, however, situations such as having the need to file for bankruptcy certainly is something that should be discreet about with your clients and customers as they may continue to lose their trust in you. Especially at this point wherein you should be doing everything to continue raking in as much profit as you can.
- Continue good PR
Makes sure you have good control over people’s perception of your brand by continuing to provide effective public relations strategy. Celebrities such as sports superstars, Hollywood actors, politicians, and monarchs all invest greatly on a great PR strategist who can tailor their presence to the public according to their branding goal. It is very important that during these crucial moments, you continue to maintain a good reputation among your customers and clients.
Filing for bankruptcy doesn’t mean you have reached the end of the line. It only means that you now have more options while protecting your assets and your business itself as your creditors will no longer be putting you on the hot seat and you won’t have to worry about legal actions taken against you. Now this is the perfect chance that you can continue to keep your brand alive despite the business bankruptcy.
Vicki is a law writing enthusiast who’s had over 25 years of experience in her field. She enjoys sharing her experiences with those who wants to learn more about the legal world, and hopes her pieces could help her readers expand their horizons. In her spare time, she spends quality time with her family and friends.