PLAN B BEFORE BANKRUPTCY
Does Your Business Future Look Bleak? You May Have More Options Than You Think.
By Jeffrey Dobkin
PART TWO
As I discussed in the last article, I don't recommend that you even think about declaring bankruptcy until it's forced on you. Remember that you always have options. Let's look at a few:
Option One--If you opt for getting out, then get on with your life. Pick up the pieces as best and as fast as you can, and find the next road going from where you are now, to where you want to be, and get on it. Walk away. You have experience--which is what you get when you don't get what you want. You'll get another chance, maybe even later this week. Or maybe next week. It'll come--don't worry.
Option Two--If you opt for staying in, this is where you tough it out, and where you get to work. Stay in business. It's proabably the best option for you and your suppliers. As long as you have some cash flow, you may be able to work things out. If you go belly up, no suppliers at all get paid, and they know that. If your business ends, you won't have anything worthwhile left, and your vendors won't get any money at all. So if it's at all possible, hang in there. This decision is always hard, and you have a tough new round of decisions to make. But you also have more options than you may think. beginning with Plan B.
Plan B--Call all your suppliers, and let them know you're having a difficult time. Tell them you are paying them off on a regular basis and that things will be better soon. It's the truth. Always tell the truth. As bad as it ever gets, it's always best to tell the truth. Hey, don't necessarily spill your guts out on their conference room table, but always be truthful.
Option Three--Stop money from coming out the bottom. Plug unnecessary holes. First, out staff. Yep, always hard to do, but it's a fact of life. Downsizing is a popular word until it happens to your firm, then it's more like devastating. Letting go friends and loyal employees. But if you've gotta do it to stay in business, then do it.
Option Four--Cut your square footage. Renegotiate with your landlord for less space. Or maybe move. Serious problems demand serious solutions, and you're going to have to cut your expenses to the bone, and rent is probably a big chunk of it.
Option Five--Cut back on everything. Limit calls. Mail less expensive brochures. Reassess everything to look where you can cut down and save money.
NEXT ISSUE: More options for avoiding bankruptcy.
Jeffrey Dobkin is a direct mail copywriter and a direct marketing consultant. You may contact Mr. Dobkin at PO Box 100, Merion Station, PA 19066.
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