Today, more people are heading online to shop, leaving many brick and mortar retailers in the dust. In 2018, more than 3,800 businesses shut their doors.
Business bankruptcy has been on the rise in recent years. In 2016, commercial bankruptcies increased by 26%.
If your company is among the thousands ready to bow out, this post is for you.
Businesses Closing in 2019
Among the businesses that are closing in 2019, there are many past retail favorites.
- J Crew
- Lord & Taylor
- Target Stores
- Winn Dixie
- Rite Aid
- Toys R Us
Are You Considering Business Bankruptcy?
Believe it or not, when it comes to filing bankruptcy in business, there is a right and a wrong way to do things.
If you need help figuring out the most important steps to take in this difficult process, we’re here to help
These are the steps you’ll want to include on your essential to-do list.
1. Decide If Bankruptcy Is the Best Option for Your Business
Have you explored all of your resources and cut costs as much as possible?
Is there a way to save your company from business bankruptcy?
Or, is business bankruptcy the most gentle route given your current set of circumstances?
Perhaps you can eliminate additional expenses, such as overhead costs or supplies, and save your company in the process. For example, you may not need an accountant to run payroll if you learn how to use an online pay stub creator.
Or, you may be able to relocate to a less costly location or downsize your inventory and save a substantial amount of money. In this case, bankruptcy might not be your only option.
Of course, there are times when all resources have been exhausted and bankruptcy is the best route to take. In that case, you should know what to do next.
2. Make a List of Assets and Debts
You will need to have a current list of your company’s assets, debts, and any creditors that you might owe.
If you are planning to file bankruptcy, your payments and debt should outweigh your income.
If you find that you aren’t showing a deficit, but still feel as if your business is struggling, there are other options you might consider.
Many businesses have been brought back from the brink of failure. Or, you might choose to proceed with closing your business, rather than filing for business bankruptcy.
3. Set a Closing Date
If your business is in the process of filing bankruptcy, then you should acknowledge the unavoidable. Obviously, your business will not be able to sustain itself for much longer. This said you will need to set a date for closing and take care of any potential loose ends.
4. File for Bankruptcy
Finally, you will need to hire an attorney to help you through the process of filing for business bankruptcy.
Want More Business Advice?
Want to learn how you can avoid business bankruptcy in 2019?
If you want advice to boost your company’s chance of success, we can help. Check out these services that can help your business survive and thrive this year!