As the owner of a small business, it can be difficult to imagine closing your doors. However, if you’re struggling to bring in a profit and aren’t able to pay bills on time, then you may be considering bankruptcy.
Small businesses are struggling in the United States, so it’s not uncommon to see business owners in your position. Many find it difficult to stay open when they can’t keep up with larger companies’ sales or influence on the region. Some find it difficult to find workers who are willing to stay with them, costing them extra money in hiring and training. Still, others are simply unable to overcome the challenges of a weaker economy than usual.
There are around 30 million small businesses in the United States. According to one report, there was a 32.4% decline in small-business revenue in March 2020 when compared to January 2020, and that has put a strain on these businesses.
Small businesses, which are businesses with fewer than 500 employees, are responsible for many of the jobs in the country. This is why it’s so important for them to stay open.
How can you keep your business open if you’re struggling?
You may have options like Chapter 11 bankruptcy, which will help you reorganize your debts and build a stronger business before emerging from bankruptcy. Restructuring your business with the right number of employees, better hours, better deals with service providers or clients and other tactics may help you stay open and improve your business’s outlook.
Sometimes, taking a step back is the right option. Consider reorganization before complete liquidation, since you may be able to get through hard times and keep your business running.