I’m not being too pessimistic when I say “Every business will go bankrupt one day or the other.” With bad management of money, this is absolutely possible. It doesn’t matter if you employ a Harvard graduate to handle your account, since as long as they fail to look for future economic crises, you will likely go down.
I say this because the U.S. bankruptcy filings state that most cases are caused not due to overspending but because of a company’s inability to spend wisely during a financial crisis. If your business does not have contingency funds, you will definitely be the first victim of the next Wall-Street crash.
Of course, you can get personal bankruptcy help in Scottsdale, but why wait, when we can avoid the action all together? So, let’s be smart and forward thinking and save our necks from this noose that haunts every businessman in the night.
Harvard researchers have found that 62% of the bankruptcy cases occur due to medical expenses. If you think that your health insurance is going to save you here, you couldn’t be more wrong. 78% of the companies had insurance cover and still went down nonetheless.
Rare diseases and serious injuries can wipe out your savings account within a blink. This is the main reason why most industrial companies stress on workers’ safety. If your company involves heavy machinery work, then any personal bankruptcy attorney in Scottsdale will tell you to maintain a backup fund for this particular purpose.
The unemployment rate in the U.S. is absurdly high. This is not because people are unable to find jobs, but they are not able to retain it for a long time. It may be voluntary resignation due to unsatisfying working conditions or dismissal due to disappointing performance, job loss can hit a person hard.
Do not get your hopes high, since not everyone of you is going to be consoled with a severance package. Even though not all bosses are inconsiderate, you never know when you will find that pink slip on your desk. Since sudden employment without prior notice can block your income and access to resources, the only way to save your self is to invest on an emergency fund.
It is said that your personal life should never affect your business life. But guess what, in this case, it’s unavoidable. Divorce takes 8% responsibility for the bankruptcy filings. It’s not just weddings; splitting-up is expensive too. Legal fees, alimony and child support can and will erase your bank balance eventually.
So, think about it. Even if you do balance your sales well, an unexpected expense can ruin it all. Therefore, the maintenance of cash is highly important to ensure your business’s future. Keep your credit card bills and car loans out of the way.
Not just in Scottsdale, but in any part of the world, an emergency fund is essential to ensure the survival of a company. So do not wait until bankruptcy hits you. But rather – think big, think forward and think smart.