Tag Archives: Business

These Three Financial Mistakes Could Ruin Your Business

Being an entrepreneur is more difficult than many people realize. It involves hard work, an innovative streak, and many sleepless nights. Simple mistakes can overtake your best efforts and put your business in financial jeopardy. Here are a few of those mistakes and some solutions an experienced bankruptcy attorney may provide: Mismanaging Start-up Loans/ Financing Securing capital is the first step in creating a startup. Whether that capital comes from family members, friends or strangers, producing a return is expected. Not delivering on those returns could land your business in trouble with its investors and securities laws. A business workout could help avoid this conflict. This out-of-court solution may allow businesses to negotiate new terms for an investment.   Failing to Make Equity Arrangements and Vesting Schedules Vesting schedules guide how business founders earn shares over time, and equity arrangements formalize the stakes each founder has in a business. Without…
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Warning Signs that Your Small Business May Need to File for Chapter 11 Bankruptcy

Starting a business is a difficult and trying endeavor. The American Bankruptcy Institute reported that over 24,000 businesses filed for bankruptcy in 2016. That is no surprise considering around 45 percent of companies do not make it to their fourth year of business. However, bankruptcy is not the end of a small businesses, and filing can actually have benefits. Here are some of signs that you may need to consider filing Chapter 11 bankruptcy for your business: You are Experiencing a Cash Flow Crisis If you are having a bad month or quarter, then you may be able to see the light at the end of the tunnel. There are ways to cut expenses to help create more cash flow. But if several clients are paying late, you are several payments behind with suppliers or facing creditor collection actions, then you may want to consider bankruptcy as a solution. Your…
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The $40 Million Missouri Business Built After Bankruptcy

When it comes to the topic of bankruptcy, you can often hear a lot of negative stories. This is pretty understandable considering that bankruptcy is a process to help individuals and businesses overwhelmed by debt. But by that same token, bankruptcy has often been the first step of getting people on the track to financial success. Do not believe us? Here is a Missouri business that blossomed out of the ashes of a bankruptcy. From Bankruptcy to $40 Million! Living in California, Jenny Doan and her husband were living a modest middle-class life. However, their youngest son developed a lymph node tumor. The medical crisis forced the child to undergo many expensive medical treatments. Luckily, the tumor proved benign, but the resulting medical bills proved to be crushing. The family chose to file for bankruptcy. Between the cost of living in California and the cost of repaying their debts, the…
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