Every business owner knows that there are risks when you go into business. Many new businesses fail within the first year, and that’s not even the biggest thing that can harm a business. When times get tough and recessions happen, many businesses fail.
It’s hard to recession-proof a business. It’s also hard to find any guarantee that your business will thrive and survive, even in a normal economy. All you can do is put your all into working toward being successful, and hope that none of the things below happen to you.
Poor Sales
Recession or no recession, if your business isn’t selling things, and you still have money going out, it’s going to hurt your bottom line. It really depends on what you are selling on what you can do about the issue. If you have a seasonal business that you are trying to run all year long, that could be the problem.
Find ways to increase sales, if you can. But, if you can’t, the longer you stay open and have money going out with nothing coming in, the more likely your chances of ended up needing to file bankruptcy for your business.
Bankruptcy
If you have money problems, even if they aren’t related to your business, and you need to file bankruptcy, it can put your business at risk. There are different types of bankruptcy, but since your business is an asset, it can be affected.
If bankruptcy is a possibility in your future, take some time to talk to a lawyer that specializes in these types of cases. Talk to them about your business, and wanted to protect you. You don’t want to lose your livelihood just because you had some money issues.
Theft
Theft can harm a business, both internally and externally. If your business is a high theft one from outsiders coming in and stealing things, you are losing a lot of money in products. It may be wise to find a better way to protect your items from theft, like keeping them in locked cases or having anti theft devices attached to them.
Internal theft can also damage a business, whether it’s the owner embezzling money or a worker pocketing cash from the cash register. The effects of this type of theft can add up quickly. Embezzlement can cause you to completely lose your business, and spend some time in prison.
Divorce
Divorce can also harm a business. If you are in business with your spouse, or even if you own it and they don’t, you could lose your business to them. If you owned the business before you got married, having a prenup might save you.
Otherwise, you really should talk to a lawyer, and maybe even have a mediator present. You could possibly work something out and not have to lose your entire business.