If you're considering bankruptcy for your S corporation,
here's
some plain talk about what to expect.
The business world often uses the terms “business recovery
plan” and “disaster recovery plan” interchangeably.
In either case, the purpose of this plan is to save your business
from closing its doors forever when disaster strikes. This
disaster may be in the form of a natural disaster, such as
the one that struck business of business owners when Hurricane
Katrina wreaked havoc in Louisiana, or it may be a man-made
disaster. Poor business decisions, a down-turn in the economy,
or even having your business taken advantage of by a few dishonest
companies or employees can also spell disaster for your business.
By having a business recovery plan in place before disaster
strikes, you will know exactly what you need to do to keep
your business from going belly up.
What to Include in Your Business Recovery Plan
Your business recovery plan should contain several items and
you should update it at least once every six months to ensure
it accurately reflects the current standing of your business.
Your business recovery plan also must detail which personnel
and departments are responsible for responding to specific
situations. As a small business owner, you may be responsible
for overseeing many, if not all, of the departments typically
found in a larger corporation. If you have a partner, however,
or have hired other personnel to help you run your business,
your business recovery plan should specify who is responsible
for taking care of the various aspects of your business should
disaster occur. This way, there is no confusion when disaster
does strike and your business can take quick and decisive action.
Your business recovery plan should also specify the equipment
you will need to get your business back on track. This may
include software and hardware for the technology department
as well as business equipment and spare parts.
What to Do if Disaster Strikes Before You Have Created a Business
Recovery Plan
If your business is going broke and you have never created
a business recovery plan, you might still have time to do so.
Before you go knocking on a lawyer’s door asking him
or her to help you file bankruptcy, talk to a financial adviser
or a business expert. They can help you find ways to cut costs
and to take advantage of laws to protect your business. A lawyer
probably won’t tell you about your other choices unless
you specifically ask about them. And, even then, you might
not get straight answers. So, be sure to talk to several different
experts and do your research to create a business recovery
plan that will help you save your business and start turning
a profit once more.
How
to turnaround your business without bankruptcy.
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