Surviving Business Financial Difficulties

When a business gets in the position of not being able to pay its debts, can it survive?

Yes it can, if the right steps are taken immediately.

What are those right steps?
1. Get the most accurate financial statements you can as soon as possible. (NOW)
2. Define your debts as **secured creditors, overhead, taxes, and unsecured creditors.
3. Analyze your cash flow and determine if you can meet your obligations to your secured creditors, your overhead, and pay your taxes.
4. Analyze your sales as to profitability.

If cash flow is sufficient to maintain your payments to those creditors with the power to shut you down, then you can be on your way to recovery. If cash flow is less than needed for the basics of survival then you need to analyze your ability to increase your cash flow or reduce your overhead.

Determine to drop all unprofitable items or products and services and/or to raise prices until they are profitable. It is better to lose an account than lose your business.

These may seem to be elementary steps, but we can assure you that 99% of financially troubled businesses ignore the situation for several months and in many cases until turnaround becomes very difficult.

When you have taken these first steps, you will know your situation and can begin to develop a strategy to pay off your debts and survive. As always, if things become overwhelming, seek help from a professional debt managment firm. We at Financial Technologies are here if you need us. We have over 18 years of experience in this field and have a proven track record of success. Please view our website at http://www.financialtechnologies.com

Do not delay in analyzing your business, as this will save you a large amount of trouble down the road. The sooner you begin to get the real picture of where you are, the sooner you can get on the right track to business survival!

-- theDebtDr.

**Secured creditors are those creditors with a contractual claim to your assets, depending on your business and industry this can include contractor liens or vendor liens.