How Small Businesses Can Soften the Blow of Bankruptcy
Some dos and don’ts for those teetering on the brink
This article is for subscribers only.
If despite your best efforts, the company you’ve built and run is teetering on the precipice, don’t give up completely. There are still things you can do to soften the blows, and steps you definitely should avoid.
DO talk to your creditors. If you’re struggling, let them know. Be straightforward, proactive, and realistic. “If you are a person with integrity, and that’s a known fact, good will makes a huge difference,” says Gerry Sherman, a Boston-based turnaround consultant. It might make the difference, for example, between a creditor that pursues a personal guarantee or fights a reorganization plan and one that doesn’t.