6/21/2023 0 Comments Tough decisions![]() It's important to understand the risks if you continue a business while it is insolvent. Consequences of continuing a business while insolvent Before you make a final decision, speak to your business adviser, lawyer or mentor and obtain specific financial and legal advice. Take the time to assess each option carefully. forced closure – file for bankruptcy or liquidation.liquidating – liquidate the business and sell off the assets.closing down the business – sale of assets and cease trading.merging the business with another business.passing the business on to a family member, partner, employee or other stakeholder.There are several ways in which the business owner can exit from their business, including: The Australian Government's advice on selling or closing your business.If you do decide to exit your business there are several other online sources available to you: Going through the options open to you, it's important to seek guidance and advice from your business advisor, accountant or lawyer. While many businesses reopen and operate successfully after a natural disaster, some do not.Įstimates from the United States indicate that up to 40 percent of businesses never reopen following a disaster and of the remaining businesses, 25 percent will close within two years. If your business has been significantly affected by a crisis event, you should consider the viability of your business. You might need the help of a trusted adviser, such as your accountant to help you make these decisions. ![]() While many business owners may not be ready for such a reality check, it should be undertaken at some point. Am I prepared for the potential extra demands that recovering my business will place on me, both personally and financially?.Was I happy running my business before the disaster?.What new products or experiences will I need to create or identify in the local area to offer to visitors?.What will the impact be on my staffing levels in the next six to 12 months?.What are my bookings and turnover likely to be in the coming months?.It can be useful to think through the following questions: After any crisis event, you should take the time to do a reality check to determine whether you really want to restart or continue your business. ![]()
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