What the lawyers are not telling you about bankrupcy chapter 11...
The business world often uses the terms “business recovery
plan” and “disaster recovery plan” interchangeably.
In either case, the purpose of this plan is to save your business
from closing its doors forever when disaster strikes. This disaster
may be in the form of a natural disaster, such as the one that struck
business of business owners when Hurricane Katrina wreaked havoc
in Louisiana, or it may be a man-made disaster. Poor business decisions,
a down-turn in the economy, or even having your business taken advantage
of by a few dishonest companies or employees can also spell disaster
for your business. By having a business recovery plan in place before
disaster strikes, you will know exactly what you need to do to keep
your business from going belly up.
What to Include in Your Business Recovery Plan
Your business recovery plan should contain several items and you
should update it at least once every six months to ensure it accurately
reflects the current standing of your business. Your business recovery
plan also must detail which personnel and departments are responsible
for responding to specific situations. As a small business owner,
you may be responsible for overseeing many, if not all, of the departments
typically found in a larger corporation. If you have a partner, however,
or have hired other personnel to help you run your business, your
business recovery plan should specify who is responsible for taking
care of the various aspects of your business should disaster occur.
This way, there is no confusion when disaster does strike and your
business can take quick and decisive action.
Your business recovery plan should also specify the equipment you
will need to get your business back on track. This may include software
and hardware for the technology department as well as business equipment
and spare parts.
What to Do if Disaster Strikes Before You Have Created a Business
Recovery Plan
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 go
knocking on a lawyer’s door asking him or her to help you 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 laws
to protect your business. A lawyer probably won’t tell you
about your other choices unless you specifically ask about them.
And, even then, you might not get straight answers. So, be sure to
talk to several different experts and do your research to create
a business recovery plan that will help you save your business and
start turning a profit once more.
Our
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