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Business Recovery Plan

 

How to turnaround your business
& become profitable again

Fight Business Debt -- Don't Go Quietly into the Night

Business debt can seem insurmountable. As a small business owner, you may find the restructuring elements of the Chapter 11 bankruptcy can help to cure your financial woes.

But it does not have to be the final answer to the more serious question of why your business is not succeeding. At least nowadays, a business owner can feel confident that they have as much information at their disposal as they need.

When dealing with business debt, it is important to remember the bankruptcy laws are there to protect businesses and creditors.

They are not there to cause you grief and hinder your return to profitability. They are actually meant to reinforce your security and enable your business to pick itself back up.

The Basics of Creating a Business Recovery Plan



Updated business recovery plan and procedure for troubled companies

 

 

The business world often uses the terms "business recovery plan" and "disaster recovery plan" interchangeably. In either case, this plan should ensure your business' survival when disaster strikes. This may be in the form of a natural disaster, such as a hurricane, fire or flood. On the other hand, it may be financial disaster. Poor business decisions, a down-turn in the economy, embezzlement by an employee or dishonest corporate partners can also wreak havoc on your business. A business recovery plan can help you get through difficult times.

What to Include in Your Business Recovery Plan

This plan should identify the most important areas of your business. What are the most basic departments you need to keep your company running? What key documents and other items do those departments need to operate short-term?

This list should specify the necessary equipment. It may include software and hardware for the technology department as well as business equipment and spare parts. And you must create a basic operating budget detailing all expenses. Find out the minimum financing you need to keep your business running.

Once you have the list and budget, put together an action plan. Describe each task, items required, department, the responsible parties and their contact information.

As a small business owner, you may be responsible for overseeing most of these departments. If you have a partner, however, or hired personnel, your business recovery plan should specify who is responsible for taking care of each area should disaster strike. This way, there is no confusion during a crisis and your business can take quick and decisive action.

Review your plan regularly, either every year or every six months. It's a good idea to look at it whenever you do your strategic planning. To be effective, your business recovery plan should accurately reflect the current standing of your company.

What to Do If Disaster Strikes

If your business is going broke and you have never created a business recovery plan, you might still have time to do so. Before you decide to file bankruptcy, talk to a financial adviser or a business expert. They can help you find ways to cut costs and to take advantage of business laws. Likely, a bankruptcy lawyer won’t give all your options unless you specifically ask about them. And, even then, you might not get straight answers. Do your research, create a business recovery plan and get your company to a profitable standing once again.


If your business is currently in trouble, here are 3 concerns unique to your situation

 

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