When you first had a dream to become a Tennessee business owner, you might have spent hours upon hours thinking of your future and hoping to see that dream unfold someday. Perhaps, during the start-up phase, you even thought of quitting a few times, as is common for many small business entrepreneurs. You stuck it out and finally arrived at the day when you hung the proverbial shingle and opened your business to the public.
Whether that was less than five years ago or decades have passed since then, you’ve likely encountered numerous challenges along the road to success. When such challenges are financial, they can cause panic. That’s why it’s good to know how to recognize par-for-the-course issues from a serious crisis that prompts a need for immediate debt relief.
Be positive but realistic
Believing in your ability to bring your dream to fruition is undoubtedly a main component of your success. Most successful entrepreneurs are ambitious, goal-oriented, self-motivated people. Positive thinking is the name of your game. However, there’s a difference between seeing the bright side of things and refusing to acknowledge a problem when the signs are there.
Where to look for problems
As a small business owner, you’ll want to regularly review your financial situation. This not only includes periodic review of your company financial reports, it also means studying sales patterns and other issues that indicate your bottom line. If you have people on a payroll, it’s also critical to make sure the business is bringing in enough money to cover their pay without putting the company in a hole.
Signs of financial crisis that warrant immediate attention
Have you noticed a cash flow problem in your business lately? That’s often one of the first signs that the financial train is about to derail. If your expenses are greater than the amount of money your business is earning, you can quickly wind up in serious financial distress.
Excessive overhead costs, unwise purchase decisions and high interest payments or loan debt can also bring an otherwise successful business to its knees.
Where to seek support
You may already have a team of financial advisers in place, in which case, it may definitely be helpful to schedule a meeting to discuss your current financial problems and possible means of solution. Many Tennessee small business owners choose to file for either Chapter 7 or Chapter 13 bankruptcy as a way to pay off debt and start afresh toward a stronger financial future.
