Business Law – Shutting Down Your Business – Part 2
SHOULD I SHUT DOWN MY BUSINESS
In my first blog post entitled, Business Law - Shutting Down Your Business I discussed some of the legal consequences that business owners should consider if they are thinking about closing their business.
In this blog post I would like to talk about the emotional decision. There are thousands of books dedicated to starting your own business, succeeding at your own business along with seminars, speeches and blog posts. However, there is very little information about how or when an individual should shut down their business.
Whether you operate a pizzeria or a consulting company deciding to close shop can have a tremendous emotional impact on an individual.
People don’t start their business with the idea that they will be shutting down. They start their business with an optimistic view and a dream of freeing themselves from an employer. Even the most well planned and thought out idea can fail.
When a business is not doing well, a business owner should consider is this a storm they can weather. Is this a temporary slump? Do they have the financial capital to continue? Let’s face it every business has highs and lows. If you don’t believe me just look at some of your favorite companies.
Of course, apart from everything else most business owners will struggle with the term failure. In that, since their business has failed this has something to do with them. A business owner might take it personally. It might also be embarrassing. They might reminisce, that only a few years ago they were proudly announcing their new business and now hoping the question isn’t asked, “how’s business”?
There is no solution to this dilemma. However, struggling business owners need to ensure they make the decision to shut down when they feel it is financially appropriate. Yes, there are great come back stories about failing business that eventually ended up doing very well.
However, there are probably more stories about business that were struggling and ended up having to fold.
One thing to certainly keep in mind, is that there is no shame in having to shut down. One should not view it as a personal failure. In fact, some have managed to avert serious economic crises by shutting down and in some situations even trying again later.
At my law office I regularly meet clients who are facing difficult decisions for their business.
I am a civil litigation lawyer in Burlington.
My address is 901 Guelph Line, Burlington.
You can also call or text at 416-505-4901 OR call Toll Free: 1 (800) 939-9211
anytime for a free consultation