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Close up shot of businessman holding leather briefcase while walking upward on the stair outdoor in city.
Bankruptcy isn’t the end. There are businesses that managed to grow out of it. They learned lessons that helped them grow better and bigger. One of the biggest lessons to learn from it is that, at the end of the day, it is the fundamentals that matter – everything else is secondary.

We should learn from these examples to understand what helped them turn the tide. There is no magic formula involved. Below is an account of all the lessons you need to learn in order to make your business grow successfully. After reading this article you’ll understand why we emphasize so much on business fundamentals.

 

1. Importance of Cash and Proper Bookkeeping

Cash is all that matters. It’s the most fundamental aspect of finance and, even still, most businesses neglect to remember its importance.  

When speaking of businesses that went from bankruptcy to millions of dollars in sales, nothing they’ve achieved would’ve been possible without over articulating over every dollar they spent. If you want to uplift your company, you should keep track of everything. Invest each penny you save, calculate returns on investment, and keep looking for other investment opportunities. Before you invest, research properly and only invest in those assets in which you have confidence. Remember, a penny saved is a penny earned!

 

2. Learn the Importance of Hiring

We don’t have enough words to emphasize the importance of hiring well. We’ve seen many organizations that overlook the hiring process. One rule that you should keep in mind is to hire people who are looking to add value to your company and not waiting for just a paycheck. It’s simple. Hire self-motivated individuals, otherwise, they will turn into a liability.

A liable hiring is a leech – it will suck your organization’s profits without letting you know a thing before it’s too late. A poor hiring disturbs the whole organization and what seems minor on the exterior is disastrous for the organization in the end. Look for passionate employees who want to be entrepreneurs. Hire dreamers. Such passionate employees not only uplift themselves but also uplift your business in the process.

 

3. Don’t Take Negotiations Lightly

Take every negotiation as if your life depends on it. Prior to any negotiation, develop a war strategy – that includes identifying all of the important points and developing a proper plan according to it. Your aim should be to get your hands on every piece of information that you could possibly get about your potential client. Go to their websites, social media pages, press releases, etc. If you have prior information available, you’ll know what to say and what not to say. Such tiny things matter a lot in sealing the deal as. Negotiate your way out of bankruptcy.

4. Be a Leader

As you grow in your career, your individual brilliance and skill set will only take you so far. You might know already that the most important thing is the quality of your leadership.

Many mistake leadership with dictatorship. That’s not what leadership is. Leadership is about balance, as you should know when to speak and when to listen. You should know which of your employee is best suited for a particular job. A leader also knows their own strengths and weaknesses. The deepest insight into your business surfaces when people from finance, HR, marketing, management, sales, and customers all come to one page and share their opinions freely.

Investors don’t invest in your plans; they hardly ever dig into the details. They look at leadership. They invest in the business that they believe will make them money. Therefore, if you cannot lead, you should learn either to lead or to hire a leader. Nothing ever grows without a leader!


Conclusion

New ideas, philosophies, and management ideas keep on coming year after year, all of them carrying their own unique importance. However, it’s the business fundamentals on which they are built. Most of them are just the revival of old ideas.

Business fundamentals will always remain the same no matter what shape a business occupies. Moreover, with ever-growing technology, people are drifting away from the fundamentals which is terrifying, to say the least.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Bankrupt written on blackboard in businessman hands, loss of money and property
Filing for bankruptcy is probably the last resort that people and businesses want to be reduced to. There are a number of reasons for it. On the other hand, some view this as a way out of a sticky situation. We will discuss the debate on whether bankruptcy is an instrument for liberty or not. The answer to this can vary widely based on the situation you are in. So, let’s look at both sides before coming to any conclusions. However, first, let’s understand what bankruptcy actually is.

What is Bankruptcy?

In the eyes of the law, bankruptcy is a legal process in which the liabilities and assets of an individual or firm are weighed to decide whether the individual can still pay off their debt or if they should be legally exempt from this. However, an individual or business must first file for bankruptcy before the court will actually consider their plea. This can be done in two ways. A person can file for bankruptcy on their own or they can hire an attorney to do it. If the court does declare you bankrupt, they will take control of all or most of your assets to pay off your creditors. Not only will your creditors not be able to contact you asking for what you owe them, but you will also be declared debt free. The only dues not cleared on your behalf are the loans that you co-signed with someone, student loans, alimony, child support, or money that you owe to the government such as unpaid taxes, penalties, and fines. You will further have to pay for the case of bankruptcy to be filed in court.

Pros of Filing for Bankruptcy

In some cases, it is actually a good idea to file for bankruptcy due to the following reasons:

  • You will legally become debt free
  • You will no longer be pestered by lenders
  • You will get a fresh start

Cons of Filing for Bankruptcy

Filing for bankruptcy has a lot of disadvantages as well that need to be taken into consideration, such as:

  • Your property, bank accounts, and other assets might be sold off or seized to pay off your debts
  • Your bankruptcy will become public domain that can be easily accessed through the court records
  • It will become harder to secure a mortgage

Is Bankruptcy an Instrument for Liberty?

In our opinion, bankruptcy can be an instrument for liberty in some cases. If you are under a ton of debt, your assets aren’t sufficient to pay them off, and you are constantly being pestered by lenders, filing for bankruptcy is the right option. However, even after declaring bankruptcy, it is not a guarantee that your creditors will stop pestering you. Secondly, after filing for bankruptcy, you will have no assets to fall back on. You will have to rebuild your life from scratch. Unless it is in the case of huge multinationals that will just need some restructuring, cost-cutting, bookkeeping scrutiny, and a few tough decisions made in the ownership.

On top of this, your bankruptcy will become a matter of public record that can easily be accessed by potential lenders, landlords, and employers. You might have a harder time renting or getting a loan. Landlords and banks may assume that you are a liability and will have a hard time paying your dues. Yet, are these issues really a problem compared to your mounting debt? If you have nothing left to lose and no way out, the only option to free yourself may be declaring bankruptcy.

Will You be Free after Filing for Bankruptcy?

Filing for bankruptcy is just the tip of the iceberg. Not only will you have to pay for filing the case, but if you aren’t filing the case yourself, you will also have to hire and bear the fees of an attorney that will cost you a decent amount of money. Going to court and simply stating that you’re broke isn’t enough. As ironic as it sounds, you will have to pay money to declare that you don’t have money.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.