Apart from the personal disappointment felt when a business fails, there is also the shame. The moment those ‘under liquidation’ boards go up in the front of the shop window, along with the ‘everything must go’ signs, passersby and particularly rivals are going to know about this. And it is not long before the vultures come swooping in. But while this may have been how it was in the past, in reality, it should not, need not, and does not work this way.
If that has been one of the ominous options proffered to you, do yourself and the business you still own a huge favor and get in touch with a liquidation specialist today and rather let him explain how the liquidation process is supposed to work. And if he has any sense of ethics about him, he may even go as far as to suggest that liquidation will not be necessary. In his case, it should be his business to know enough about the alternatives for rescuing a business.
The business does not need to go under. And there is at least a positive reason why they call it the ‘business rescue’ plan. But in the event, the liquidation plan is placed on the table as a last resort. Once all other options have been exhausted, this may yet be for the best. But once the liquidation mill starts to turn, it does not necessarily imply that the small business owner is now going to be left flat broke.
A licensed and registered practitioner with a good deal of business on his own books should be striving to leave the small business owner with something over once all final dues have been settled. This tides him over and should also be providing a cushion to help him start over.