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    3 Replies Latest reply on Jan 3, 2009 5:31 AM by LUCKIEST

    Considering Bankruptcy

    flowergirl Newbie

      Due to the economic turmoil i am not sure what to do about my business. I am in some pretty serious trouble. I have recently laid of more than half of my employees to make ends meet. I am behind on all my payments and this is the first month I have been unable to make rent. I have some loans out because this was my first year owning an existing business. I had to put alot of personal money into this business because it was pretty run down. I own the only floral shop in my small town. I am at my wits end to this. I am at a point that I am unable to put food on my table fo rmy children. Just not sure if bankruptcy is the right answer.
        • Re: Considering Bankruptcy
          Lucky3 Newbie
          I believe the first thing you need to do is a self assessment on assets and liabilities and where have your sales been coming from and why has there been a change. You may want to call some of your former best customers and do a little questionnaire to glean some information. If you let half of your staff go, how did you determine who was to go? Do you do monthly reconciliations of your bank statements and tie it into a full "write up" system which measures your inventory, profit centers, etc. If not, can you go back and do an analysis for the last six months?

          Be sure to call your vendors and Landlord and let them know what is going on and try to work out short term solutions to stay in business. Valentines day and more is coming soon and you can strategize how to boost sales or diversify your product line - add the new edible arrangements, etc.

          A Bankruptcy has got to be your last resource. One way to cut down on some expenses in a time like this is to join pre-paid legal services (which I also market) so that you can get legal advice without a bill each time you call.

          Well, that is a start for your consideration. Hang in there and if you have any questions for me, please send them on. This is my first attempt to participate in the group and I hope it was of some help.

          • Re: Considering Bankruptcy
            LUCKIEST Guide
            Considering Bankruptcy

            Good advice from Lucky3. As you said we are starting this new year in an economic turmoil.

            You should talk to a Lawyer and SCORE. SCORE is FREE. Bankruptcy should be your last step.

            Good luck, LUCKIEST