Vital Factors to Consider… Before You File for Business
Bankruptcy, Restructure Your Debts or Turnaround Your Failing
How to fix the problems at your troubled business
and get rid of your business worries.
Today, the US economy
is struggling with housing prices seeing the steepest drop
in 30 years, foreclosures at record levels, and unemployment rate
at 7.9% per the November 2012 announcement.
This recession and very slow recovery has now
lasted 67 months. Clearly we are in the worst economic downturn of our
lifetimes. It's especially bad for small and medium-sized businesses.
Fortunately, there is
some good news for troubled small and medium-sized businesses.
Consumer confidence rose in October and November 2012. The employment rate was 9.8% in January 2011 and it's now down to 7.9%. Even better, I'm starting
to see banks lending again although it's still just a trickle.
Although the recovery has been sputtering for several years, overall the economy is beginning to pick up for most small and medium-sized businesses. This is the good news. Now the bad news.
We still have
Over the past 4 to 5 years,
many medium to small businesses have seen a dramatic slow down
consumers and business customers are buying less
or not buying anything at all. This of course put these businesses into financial trouble during the recession. Now that demand is beginning to rise, these businesses are having difficulty getting the additional financing they need to survive and compete.
These factors are causing
many small business owners and mid-size company CEOs to file
for bankruptcy protection. Unfortunately, declaring bankruptcy
right now is a BIG mistake for small and medium-sized businesses.
In this "3 Vital Factors" article, I'll tell you why.
byDan Betts, Managing Principal, Turnaround Central
you’re… (Check all that applies)
Worrying about where to get the money to pay your company’s bills, taxes,
Considering a business bankruptcy filing
Meeting soon with your banker because you are in default, you can’t make
the loan payments or must stop foreclosure
Searching the web for business turnaround, bankruptcy, receivership and insolvency
information to help your company, but you can’t find anything helpful
...you are about to discover the information you need to solve
(The intended audience for this article is business owners
and managers with struggling companies and small businesses -
both in the United States and elsewhere - and current and prospective
There are 3 vital factors that any person leading a failing company
must consider. These are:
1. Stress And Worry May Keep You From Saving Your Company
2. Lawyers Don’t Have All The Answers
3. Innocent Mistakes Often Kill Troubled Companies
As you read this article , you’ll hear how you
can get rid of these problems and discover how to help yourself
and your failing company.
#1: Stress and Worry May Keep You From Saving
Here are some common worries associated with
a failing company:
You can’t pay the employees on time. What
can you do about it?
Is bankruptcy the right answer? Will this
save your company or kill it? Is your attorney giving you good
advice or is he just trying to make a big score?
Should you pay your taxes? What happens when
the IRS or some other taxing authority padlocks your door?
Can you make your loan payment? Should you
ask your banker for help? Will you screw up talking to your
banker causing the bank to foreclose?
You’ve made personal guarantees. What
happens when the business fails? Will you be working the rest
of life to pay these debts? Could they take your house?
A family member is dragging the business down. What
do you do? Can you fire the family member without causing a
major rift in the family? Or keep the family member and pray
he or she stops screwing up?
Here’s the problem. Worrying is taking
valuable time away from you… time that you should be using
to save your company.
And it’s a vicious cycle. Because your worries are stopping
you, your business declines further. And this causes even more
worry and less action.
Factor #2: Lawyers Don’t Have All
Here’s what we call lawyers in Texas, “buzzards
in a three-piece suits.” This is especially true
for bankruptcy attorneys.
Let me explain.
Of the companies that file for Chapter 11 bankruptcy, only
1 in 10 survives the procedure. And the one lucky company
only survives because it has a ton of cash when it files.
(As you may know, Chapter 11 is a form of bankruptcy that
lets your company continue to run with protection from your creditors,
but with the oversight of a bankruptcy judge. Chapter 7 bankruptcy
on the other hand is a liquidation of your company. You can get
a detailed description of these and other legal alternatives
in the "Fix Your Failing Company Toolkit.")
Now, as you might guess, most failing companies don’t have
much cash when they file for Chapter 11. So why do their bankruptcy
attorneys encourage them to file Chapter 11? The bankruptcy
attorneys make a fortune on the deal, that’s why!
How much will your attorney make? Typically a Chapter 11 filing
is going to cost you at least $50,000 in attorney fees for the
smallest company and over $100,000 is common.
Your bankruptcy could make your attorney’s year and buy him
or her a new luxury car..
Let me show you how outrageous these fees can be. In a recent
bankruptcy filing, a $20 million technology firm took Chapter 11
and it had over a $1 million in fees before it was over. Fortunately,
it had $3 million in the bank before the filing… so the company
Here’s what typically happens to most cash-poor companies
filing a Chapter 11 bankruptcy. The CEO or business owner becomes
tired of fighting the creditors everyday. He or she thinks that
Chapter 11 will make their debts go away (it will) and save their
business (it won’t.) The business leader goes down to the
bankruptcy attorney’s office, and the attorney, with a
gleam in his eyes, wholeheartedly recommends filing Chapter
(By the way, if the attorney gives you non-bankruptcy
alternatives to Chapter 11, you will know that your attorney
is looking out for your best interests... but these individuals
often hard to find.)
Then, within the next few months, the company runs out of cash
completely because of paying the high legal fees. Since there’s
no cash remaining, the creditors’ attorney (which the bankrupt
company is also paying for) files a motion to convert the Chapter
11 into a Chapter 7 liquidation bankruptcy. Without cash in the
bank, the judge has no choice, but to order a liquidation of the
Game over for your business. But that’s
Do you have personal guarantees on debts that your bankrupt company
can’t pay? Will angry creditors and investors sue you anyway? The
hits just keep coming for you, but your bankruptcy attorney
had a great year.
So the moral of this story is: Chapter 11 is seldom is the best
choice for your company.
Obviously, the solution is to fix your failing company, sell it or
use little-known, inexpensive legal maneuvers. These are much better
choices than Chapter 11 and you’ll find out more about them later in
Factor #3: Innocent Mistakes Often Kill
Because you’re not an expert in business crisis management,
you’re certain to make dumb, but honest mistakes right now.
Let’s see how easy you can make a mistake. Do you
know what to do when…
The sheriff seizes your equipment for the leasing company?
The bank calls your loan?
You can’t make the rent payment?
The IRS padlocks your door?
You’re out of cash and your big customer’s check
is lost in the mail?
A creditor is asking you to make good on your personal guarantee?
The list could be much longer. You can imagine all the
problems for which you don’t have an answer. And
when you decide wrong, you could be shutting your doors shortly
and paying your creditors out of your own pocket.
Remember when you were in school. Leading a failing
business is like having a pop quiz the day after you were sick.
It’s not your fault you missed yesterday’s lesson,
but now you must have the right answers or you’ll
You need a cheat sheet. You’ll find out
how to get one in the next section.
Here's How You Can Fix The Problems and Stop
the Worries Starting Right Now
I’ve helped thousands of failing companies and their owners
and managers get
a fresh start and overcome their business problems..
I don’t know if this makes me an expert, but
many people call me one. I can say that I’ve been around
the block a few times.
Until now, you’ve not found anyone as interested in solving
your business problems as you are. Now you have. You and
I are in the same corner and fighting the same battles.
And I won’t let the lawyer (and banker) take advantage of
Luckily, what’s in my head is now in a book. I’ve
written a training manual for business owners, executives and management
consultants. It explains exactly how to fix your failing
Remember …the worries, the fears, the money-grubbing
lawyers and the dumb mistakes, these will all go away when you
get my training manual.
I call this program The Insider Secrets to Saving
Your Business: The Step-by-Step Turnaround Guide
In it you’ll discover...
The bad news about selling your business when
it’s in trouble and how to turn this to your advantage.
A little-known way to never overdraw your bank account.
How the pros reduce debt by up to 75% through
negotiations with suppliers, banks and taxing authorities.
You’ll save thousands with this proven technique.
Discover exactly what’s wrong with your company
and how to fix it. It’s so much easier than
How to tell when your current company structure is “right” and
what to do about it.
Ingenious tricks for dealing with the IRS and other
taxing authorities. The IRS can and will shut down
your business. This won’t happen when you follow my
This is just a partial list of how this Insider Secrets can
What’s unique about my program is that it takes you by the
hand and leads you effortlessly through the steps to save your
business. It’s not a bunch of theory, just useful, practical
advice and tips. There’s nothing on the market like
Here’s what’s most important. Insider Secrets contains exclusive information
that your lawyer, your banker and (most) turnaround consultants
want to keep from you. Earlier, you learned one
secret that your greedy bankruptcy attorney would never want me
to reveal. And I reveal plenty more in Insider Secrets.
The secret way to get rid of your personal guarantees. You
get three strategies for making personal guarantees go away.
You’ll breathe easier knowing these.
How to play hardball with your banker and
get him or her to write down your loan. You’ll love this
A perfectly legal way to delay your loan payment without
A proprietary list of 5 requests that you can make
of your banker. There’s a good chance that
your banker will approve at least one of these and your troubles
will be over.
What It’s Not
Something else about Insider Secrets: It’s not academic
theory, but a practical guidebook that gives you the steps you
must take right away to fix your business.
You’re not going to hear about “Failure Prediction
Models,” “Altman Z scores,” “Multi-Discriminate
Analysis,” or any other mumbo jumbo like that. So if you’re
doing your PhD in Business Crisis then my training manual isn’t
On the other hand, when you manage a failing company, then my
training manual is perfect. You get practical and understandable
advice, facts and tips that’ll make your business
turnaround a success. For instance:
Bulletproof budgets that you can create easily with
my proven formula. Your CPA will love you for this.
Do you need to get rid a family member working in
the business? Discover 2 proven techniques to fire
a family member without causing a major family rift and a
The #1 mistake everyone makes when they need
turnaround financing and what to do about it.
The stress of a turnaround doesn’t have to tear
your family apart. You get some advice learned the
Four simple ways to fix any cash problem.
Tricks you can use to continue running when
the company is out of cash.
How To Use Insider Secrets
Let me give you a word picture. Insider Secrets comes
to you as an e-book. (Or, you can also get a paper-based version
- see more below.) You download
from the Internet. You open the e-book and start reading. Within
just a few minutes, you’ve answered a pressing problem and
you write it down.
You continue to read and find more and more answers. Soon, you
have pages and pages of notes. And when you walk into your company
the next day, you’ll know exactly what you need to do. And
you’re going to sleep better starting tonight.
Here’s an unexpected result of releasing my Insider
Secrets program. It’s becoming “standard
practice” in the consulting industry. Exactly
27% of my sales are to management consultants including well-respected
turnaround consultancies and the Big 4 accounting
firms. Here’s some of what they’re learning from
Insider Secrets and you will, too:
The easiest (and best) way to get board and
banker approval for your turnaround plan.
How you can increase sales by 35% using my
5 simple methods.
An insider’s list of external financing sources (14
in total.) Any one of these can finance your turnaround.
Master 8 proven steps for creating an awesome turnaround
plan that’ll knock the socks off your banker
and your investors.
You must offer a severance package, right? Wrong. Truth
is, no law compels one. Find out how to do the “right
thing” without breaking the bank.
This is critical. How to find the one piece
of your business that can restore profitability to the whole
What Else Will You Discover In Insider Secrets?
Here are 6 more useful ideas you’ll find in my program...
The good news about family run businesses and how
you can fix them quickly. Turnarounds of family
businesses are unique and need a special approach.
Some surprising ways to keep the bill collector from
Sneaky ways to protect your personal assets, your
nest egg and your wealth from lawsuits by angry
creditors and investors. Consultants take note -- This applies
to you as well.
The one question you must ask yourself before you
fire an employee.
Warning! Expect creditors and investors to
sue you when the company gets into financial hardship. Discover
my 3 recommendations for reducing your chance of a lawsuit.
Discover dirt cheap advertising methods that
any business can afford. Bonus Material -- I let you in on
my Internet Marketing Secret.
Also, you’ll need these
techniques and tips to be successful...
Proven! 46 powerful techniques for motivating the
troops and keeping your best employees.
When to hire extra security to protect you
and your staff from an upset ex-employee. Your family will
thank you because you followed this advice.
Discover 56 amazing techniques for squeezing more
cash out of the business.
Five remarkable techniques for grabbing market share when
you don’t have any money.
Would you like to run employee termination meetings
like a pro? I show you how and you won’t have
to fear that a fired employee is going to “blow up.”
Plus much, much more!
Limited Time Offer - Fix Your Failing Company
For a limited time, your Insider Secrets book also comes with
Your Failing Company Toolkit.
This Toolkit contains advanced materials and
helpful checklists and templates. Here’s what you get in
Special Report #1:Business Bankruptcy
and Other Legal Choices for Your Failing Company
Special Report #2:A Legal Trick To
Have A Debt-Free Business
Special Report #3:A Turnaround Plan
Template – An Example To “WOW!” Your Board,
Your Banker And Your Entire Organization!
Special Report #4:A Detailed Checklist
To Speed Your Business Turnaround
Special Report #5:Mining Gold From
Your Bad Debt Write-Offs – A Lifesaving Technique For
Special Report #6:Renegotiating Leases
And Vendor Contracts For Maximum Savings – A Guide
For Troubled Companies
I sell this toolkit separately for $247 on this
web page, but, for
a limited time, I am giving it to you free when
you try the Insider Secrets manual as part of a market test. Let
me clarify "limited
may decide, at any time,
giving away The Fix Your Failing Company Toolkit and
This means that only when you get Insider Secrets today are
you sure that you will also get the valuable $247 Toolkit for
As you know, The Insider Secrets to Saving Your Business and
the Fix Your Failing Company Toolkit are
the easiest and fastest ways for getting the knowledge, skills
and techniques you will need to fix the problems
at your troubled business.
Now, you must take the first step.
The thing that you fear most may come true ... unless you take
action today to fix the problems at your struggling business.
Remember, your "trusted
your banker and attorney will often not tell you the truth. And,
your natural instincts and choices will often be the wrong ones,
and actions based on "gut feeling" will just make everything worse
for you, your company and your family.
You need the cheat sheet on business turnarounds.
Insider Secrets will give you the specific
step-by-step strategies you need to fix the problems at your failing
business. And you will finally get the "whole truth" without
any candy coating for once.
You can get Insider Secrets for only
$197. You can choose to receive Insider Secrets
either as an ebook (with instant delivery) or as 2-binder paper version
of the book delivered
to your door.
Or, if you prefer, you can save $147 and get "The Combination"
-- that is, you get the ebook from an instant download and
we also send you the paper-based version (the two binder set) for just
I often get questions about the difference between the ebook and
paper-based versions. The content is exactly
the same and, with both, you get the Fix Your Failing
Company Toolkit. The key difference is delivery and
The ebook is right for you when you want the information immediately
and don't mind reading it from the computer ...(by the way, you
print the ebook if you choose.) Delivery is free.
The paper-based Insider Secrets is
right for you when you like to read from a printed page and don't
mind waiting a few days to get it. You will have to pay a delivery
And "The Combination" is right for
you when you need the information right away and want a spare paper
office to read in bed or at the dinner table. (And
you like to save $147.) You will have to pay delivery for the two
At either the $197 or $247 price, you are getting the exact
steps and inside information to fix the problems at your struggling
get rid of your
worries -- all for about the price of a typical office supply order
for pens, pencils, paper, and other stuff. When you think about
a true bargain and it's a small price for how much it helps
Here’s How You Can Start Fixing Your
Company In The Next 15 Minutes…
When you click on one of the links below, you will go
to a secure web page for your credit card.
To keep your personal and credit card information completely confidential,
we use a third party secure processing company.
You receive a receipt
with a transaction number through email right away.
When you get the paper
version or "The Combination", your books will be sent the next
day and you can expect arrival within a week (US only ... outside
usually within 2 weeks and you will also have to pay duty and extra
When you decide on the ebook version, you will
receive an email within 10 minutes with a link to where you
download your book and your toolkit right away. The
book and the toolkit come in the same e-book for easier access.
(The same goes for receiving the ebook part of "The Combination"
Everything takes just a few minutes and you’ll be reading
your e-book in fewer than 15 minutes from right now.
When you get the book, I suggest that you scan it and read those
sections where you have the most pressing problems -- then, when
you have time, read it from beginning to end. Take notes and carry
out what you learn immediately ... and you will see a big difference
in a short time.
Throughout your turnaround, you’ll use the Insider Secrets
and the Toolkit as a constant source of good ideas,
practical advice and the exact turnaround procedures you need.
now, you don't want anyone to know that your company is in
trouble. You can rest assured that I'll never
tell a soul about your business problems or that you're a client
of mine. After
working with hundreds of business leaders with failing companies,
I completely understand and respect your need for privacy.
The Insider Secrets to Saving Your Business and
the Fix Your Failing Company Toolkit come
with a 30 day Money-Back Guarantee. Read the book and try the techniques
and the practical procedures that I recommend. If the Insider Secrets
or the Toolkit are not helpful to you – I’ll
gladly refund your money.
Click on the link below to get "The Combination" which
includes both ebook and paper-based versions of Insider Secrets
and the Toolkit
Remember, you need to take some constructive action
today. As you have read and heard from so many people on this
web site, you know the best place to start is by trying Insider
I look forward to hearing from you today.
Wishing you prosperity and success,
Managing Principal, Turnaround Central
Author of The Insider Secrets to Saving Your Business and Fix
Your Failing Company Toolkit.
strategy and idea in The Insider Secrets to Saving
Your Business and the Fix
Your Failing Company Toolkit are business and personal
I have used all these in the real world. They work. Any ordinary
person can get the same positive
results. You can do it. You will get the exact step-by-step
actions to fix the problems at your business... for about the
price of a normal office supply order.
Also, remember, by
Secrets today, you are sure of receiving
the $247Fix Your Failing Company Toolkitfor
free. It's savings opportunities like this that
you and your business need so much right now. Take
it while you still
got the chance. Get
Combo, Get Paper, Get