As one of many Wisconsin business owners, you’re likely no stranger to economic challenges. Perhaps you’ve had some fiscal years that were better than others. As long as you can pay your employees and keep business rolling as usual, you’re confident that things will turn out okay. However, if you’ve missed a few mortgage payments or had to stop taking a salary to meet your overhead costs, it might be a sign of serious financial crisis.
Knowing where to seek support is just as important as knowing the signs that a business is headed for trouble. The fact is, if you recognize a problem but have no idea what to do or where to turn for help to resolve it, knowing about the problem doesn’t do much good.
Signs that definitely signal financial trouble in business
Some of the issues on the following list are not uncommon. Experiencing one or more of them, however, might mean it’s time to take a closer look at the books and determine if you need to explore a few debt relief options. These signs signify a possible financial crisis:
- If your company cash flow has dwindled to zero, it’s a definite clue that things aren’t as they should be, financially speaking. Temporary cash problems are common among business owners but if you just can’t seem to keep any cash on hand, it’s a sign of trouble.
- Are you having trouble paying your taxes? If tax time causes you immediate stress because you know you have not been making quarterly payments on time, it might mean your company is having some serious financial problems.
- If your company’s debts far outweigh its assets, the financial future might appear dim.
There are but a few of many issues that often arise when serious financial crisis hits a business. Try not to panic if you found yourself relating to one or more of the issues on the list. Sometimes, it’s a simple matter of adjusting your spending habits, issuing a few pay cuts or cutting other overhead costs to get things back on track and moving in a positive direction.
What if it’s not that simple?
Bankruptcy is a word that causes a knee-jerk, negative reaction in many people. There is definitely a derogatory stigma attached to the term. However, bankruptcy comes in several forms and is often a means of immediate debt relief that helps business owners resolve serious financial problems and also lay the groundwork for a stronger financial future.
There are rules and eligibility requirements associated with filing for bankruptcy. If you have a colleague who owns a Wisconsin business who has already navigated the process, he or she might be able to provide sage advice and strong support as you try to determine whether bankruptcy is a viable option in your situation. An attorney who is well-versed in such issues is also a great support resource.