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Will your business face bankruptcy if you can’t find employees?

On Behalf of | Nov 22, 2021 | Bankruptcy |

There are many reasons for business bankruptcy, from taking on too much debt to changes in the market conditions to the introduction of a competitor in the same space that you didn’t expect. In some cases, bankruptcy also happens simply because the business idea was never all that viable to begin with.

But what if you have a good business model and you’ve had proven success in the past, but now you’re just struggling to find employees? There has been a well-noted worker shortage in the United States over the last few months. Maybe you didn’t have any problems finding people to work for you when you opened your doors in 2010, but now it seems impossible. Is that going to lead to bankruptcy? 

The issues that you may face

A lack of workers could certainly lead to a lot of financial issues. Many businesses are trying to cope by cutting hours so that they can reduce their costs and have enough workers to schedule their shifts, but the downside to this clearly is that you may see a drastic reduction in income if you can’t get as many customers.

The type of business you run also makes a big difference. If you can just tighten up your hours and still ship out as many products, it’s not as big of a problem. If you own a restaurant that suddenly has shorter hours, though, that definitely means fewer people coming through the door and less money coming in. The debt that you took on when you started the business in 2010 may suddenly not make any sense on your current income levels. If that happens, it may be wise to look into all of the legal options at your disposal.