The prospect of having to announce yourself as bankrupt can be a demeaning and sorrowful. The idea that they anyone can fail so miserably is often very hard. Although there is always a risk, it’s fair to say that without that threat of failure there’s no point in trying in the first place.
It’s best to look at how you would attack the risk, as there is no point entering a business feeling that you will 100% succeed. I have heard of proprietors stating that in their first year or two they were at the brink. At the edge and then things happened to turn their business around. This can also be rare if you are not making enough to keep you afloat.
A young woman had started an eBay business and said it was the hardest thing she had ever done. She was not making near enough to be filing away her tax as a self-employed claimant. She said that sales would rarely come in and when they did – they didn’t earn her enough to cover monthly costs and personal expenses.
This sort of situation is common for first time sellers and those who want to use eBay as a sole business earner. But it doesn’t just stop there, it pushes to many self-employed workers who struggle in their first years.
Although she didn’t file as bankrupt she seeked help, and the help she received was to close the business. She had been running her page for almost 2 years and it was heart-breaking for her to do. It can certainly feel like you’re losing something that you placed your hope and dreams into.
Help can always be sought by those who wish to give advice. For example, if living in Hawaii, researching business law in Maui is a good example of the type of help that people can seek and find. Location really doesn’t matter, when somebody needs help they should turn to solutions that will aid them quickly.
It can be as simple as being told to close down your business to reduce further debt. Another example is if you are renting/ letting and you cannot afford to pay anymore, the consequences can find you in court battling it out. It’s best to be honest with yourself.
One man who owned a café couldn’t let go of what he owned and his month to month earnings were based on sales that accumulated at different paces. So, his business would be up one minute and then down the next. When he would present his sales margin and targets to his partner, it was quickly discovered that there was no way that they could continue.
He eventually had to give in and sell the business. This is a common occurrence, you can find yourself with a business that doesn’t bring the revenue you need, or maybe you didn’t target the right audience effectively, or you didn’t research the type of clientele would need to be financially successful.
Failure is always close by when you begin a business, but do not be fearful of it. There is always a good chance that your new business with thrive and even expand, beyond your wildest dreams!