Chapter 7 Bankruptcy In New York: Signs Its Time To Close Your Business
Owning your own business is often a lifelong dream and you may have invested significant amounts of both time and money to ensure its success. Despite your best efforts, it may not work out quite the way you planned. Wondering whether it is time to pull the plug and close your business? The following highlights some warning signs and how filing a business bankruptcy can help.
Wondering Whether To Close Your Business? Five Warning Signs
It takes vision, dedication, and the willingness to make large personal investments in order to operate your own business. Even with these qualities, the success rate is shockingly low. According to the Small Business Administration (SBA), about one out of every 12 businesses closes each year. The majority of these represent new businesses that have been around for five years or less.
Low sales and lack of cash flow is the most commonly cited problem business owners experience. However, there are other warning signs that indicate it may be time to consider closing your doors. These include:
- You are not making money, despite being busy. Even if you have a large customer base and an abundance of orders, not making money due to high operating costs and low-profit margins could spell doom for your business.
- Your supply chain has drained up. An increasingly common problem amidst the ongoing COVID-19 pandemic, you may have little option but to close your business if you are unable to get the products or materials you need to succeed.
- You cannot retain employees. Another common problem since the pandemic, employers are being pushed to perform more job-related tasks on their own due to worker shortages. In addition to potentially impacting your health, not having people with the right skills or knowledge can seriously affect your business.
- Customer retention is low. Repeat business can play a major role in the success of your company. Even if you offer a superior product or service, there are some situations in which your return customer/customer retention level remains dismally low.
- It is taking a toll on your health or your family. When operating a business begins to take a toll on your physical or emotional health and begins impacting your relationships with close family members, it may be time to consider closing.
How Bankruptcy Makes Closing Your Business Easier
Deciding to close your business is not easy but filing for bankruptcy can help streamline the process. A Chapter 7 bankruptcy offers important benefits and protections, which include:
- Aids in liquidating existing products, supplies, and equipment;
- Allows you to eliminate unsecured debts;
- Prevents you from being held personally liable for past due balances;
- Protects you from court judgments, liens, and other legal actions.
Contact Us Today for Help
At the Law Office of Harry D. Lewis, we provide the trusted legal guidance you need in determining whether filing for bankruptcy is the best course of action for your business. Call or contact our New York City business bankruptcy attorneys online and request a free consultation today.