There will come a time when the coronavirus becomes a treatable disease. Human patients will be recovered and we will have a treatment. That’s just the inherent optimist in me. However, many businesses will still be struggling long after the human toll has been realized. These small businesses will have to make some tough decisions, including whether to continue in business or not. I’m reminded of the Kenny Rogers song, “The Gambler.” In the song he sings about knowing when to hold ‘em and knowing when to fold ‘em. That’s what every struggling business owner has to consider.
Here are some things to think about as you consider the future.
Do you even want to continue
The most important part of the small business is the owner of the business themselves. They drive the business, create the products and supply the vision to make the business successful. If you’re drained and don’t feel like you can go on, now’s the time to look long and hard at whether you should continue operating the business.
If you’re up for the challenge, there are more questions.
Can your business continue
Once this is over and we arrive at whatever “normal” is, we need to determine whether there is still a demand for the product or service you provide via your businesses. If there is a demand for your product, how long before that demand ramps up to the point that you can bring the business back to profitability. How will you survive financially in the meantime? Because of these questions, you’ll need to look at the following instructions. .
Reorganize your business to survive
COVID-19 has forced all of us to look at our situation and reevaluate how we operate, us included. It causes us to look at what is and is not important and what is and isn’t essential. We have to take a tough look at our operations and ask ourselves:
Could the business continue with
- More or less owners
- fewer employees or restructured hours
- Fewer locations or completely online
Take the time to reevaluate and embrace the opportunity to change the way things work, hopefully for the better
New debt
Business loans are a part of the government’s recovery plan but one of the problems with this is the uncertainty about how the loans are to be repaid. You need to consider whether or not you’re able to float more debt. Were you current on your debts or were you debt free? Is borrowing essential to even keep the lights on. If it is, then you have no other choice.
Winding down and moving on
Ending your business isn’t just an all or nothing choice. If you fold the business you can still remain in the industry either as a manager or other type of operator. It gives you the opportunity to re-enter the market in the event that the demand comes back without losing contacts in the industry.
Challenges going forward
All of these issues are fluid and the situations are constantly changing. We have helped hundreds of business owners wind down operations and get the piece of mind they need in order to move on with their lives. If your business is failing or if it’s just overwhelming you, schedule an appointment with one of our award winning bankruptcy attorneys to see if bankruptcy would be an option to help you move forward.