It is no secret that the pandemic currently gripping the globe has resulted in more than a few hardships for individuals, families, and businesses. It is often small businesses that get impacted the most. These entities simply do not have the capital required to withstand such a massive drop off in revenue so quickly. Payroll can no longer be met, rent and utilities are difficult to pay, and the list can go on and on.
Surely times will get better in the future, but how long can a small business hold on before the towel is thrown in? Rather than shutting down the company altogether, bankruptcy may be an option. However, it is helpful to know when it is time to file for this legal protection.
Do You Want To Go On?
The first thing that you will want to determine as a small business owner is whether or not you even want to carry on. Perhaps you have been wanting to move in a different direction for quite some time. This current situation might be the handwriting on the wall that it is time to do exactly that.
If you feel that you have already given everything you have to the business and are ready to move on, then bankruptcy is not something you need to explore. Instead, you will want to contact a lawyer and ask for help in shuttering your operations and officially closing the business.
Bankruptcy Is Available As a Legal Protection
Many people hesitate to consider bankruptcy because they are afraid of the perception that will be generated as a result of the filing. This should not be a concern. Remember that many large companies across the country have relied on bankruptcy laws to give them the breathing room necessary to survive tough times.
This same legal protection is available to you as a small business. In fact, many such small business owners that do end up filing bankruptcy end up remarking that they wish they would have taken such action before.
Will Restructuring Your Business Help?
Much of your decision for filing bankruptcy or not will revolve around the notion of restructuring. This is something that only you can decide. Such a filing is meant to provide you with a way to restructure your business during the tough times so that you can thrive at some point in the future.
To decide if this will be beneficial to you, it is helpful to first write out a revised business plan. You will want to sketch out what you feel your small business will look like in a world that has eventually moved on from the pandemic. Determine where your major source of revenue will come from. What do expenses to rebrand and market your business in the future entail? If you can honestly see a way forward, then it might be wise to file bankruptcy now to provide you with the flexibility needed to meet these goals.
Regardless of what direction you decide to head with your small business, know that you are not alone. The pandemic has hit hard, but there are legal protections available to you. Make use of those and work to find a way forward if possible.