Blog

A boutique Toronto law firm serving
clients across Canada since 1987

Sep 06, 2017

Which business errors can lead to commercial bankruptcy?

Businesses come in different sizes, from small ventures run by entrepreneurs to conglomerates with many employees and branches in various locations. Ontario has many successful businesses, but it also has scores of individuals who are struggling to keep their businesses afloat. Some experience problems from the onset, while other companies stagnate after years of successful trading. The reality is that any business could experience problems at any time that lead to a commercial bankruptcy filing.

A few fundamental mistakes can have disastrous consequences in the world of business. An important part of running a successful business is choosing a niche that is comfortable and in which the owner is well versed. There is little sense in following the lead of another successful business without having relevant knowledge. Then, there is the level of business management that plays an important role. If there is a lack of professionalism in the business plan, marketing strategy, accounts management, customer service and legal compliance, the end could be near.

Some companies have been successful for years, but failed to keep up with technology. By utilizing automation and online business management, along with administration platforms, branding, marketing and more, businesses can be more efficient and remain competitive. Proof of this is the high number of clothing franchises that succumbed to the competition of online stores in recent months.

Ontario business owners who see the signs of their ventures heading for financial trouble may find comfort in knowing that help is available. An experienced commercial bankruptcy lawyer could assess the circumstances and explain the best steps to proceed. With proper guidance from such a professional, bankruptcy might be avoided, but if that is the most appropriate route to go, the lawyer can provide skilled advocacy throughout the legal proceedings that will follow.

Source: theglobaldispatch.com, "Vital Signs That Your Business Could Be Headed For The Rocks", May 31, 2017