Should I Liquidate My Company?

Someone recently asked me this question and there are two options, liquidate or rebuild your business.

Do liquid assets exceed the total short-term debts? Depending on the gap, you have a fighting chance in my opinion. If you personally guarantee liabilities like office leases and bank loans, you remain responsible for them. This applies especially to loans you obtained in recent years. Even if you liquidate the company, these liabilities remain your responsibility. In case there are a lot of personal guarantees then liquidation may not really be an option as it won’t solve the problem. You’re the best way is to trade out of it.

Now let’s look at what really can be done. When you’re in what appears to be a desperate situation that you’re considering liquidation the mindset is constantly looking at the negatives. If you focus on seeing negatives, that’s all you will notice, and that’s all you’ll experience.

It’s very hard in that situation to see the positives and therefore impossible to see the opportunities. And yet there are so many opportunities out there. You must consistently focus on the positives, regardless of the course of action. Your mind cannot create or identify opportunities without the right mindset.

Although this challenge may seem difficult, you can overcome it. You may be still looking at doing business the same way you’ve always done business. Since the environment has changed completely, you must adapt your business accordingly. When I go into a business to turn it around, I don’t just examine what the business did in the past; I explore how it can operate differently in the future.

Recently I lost somebody that I used to work with years ago when he took his own life. Thoughts of what he went through and how others could have helped him haunt me. I was always brought up to believe there is always a solution to everything. Such moments devastate everyone close to the individual.

Shift your mindset, take responsibility, and discover the endless opportunities waiting for your business.

If you believe there are no other options for your business, think again. Get out, shake yourself down, remove yourself from negativity immediately, rent a few comedy movies, and then get back into the business and start looking at all the opportunities that are out there.

I live by the philosophy that I take responsibility for everything I have. Thus, I take responsibility for my environment; it’s not the fault of anyone else or external factors. I may have to adapt my business if my environment changes – that’s fine – it’s my responsibility and therefore within my control.

Years ago, I read a speech by Russell Conwell, titled ‘Acres of Diamonds’ that was written back around 1890. There are so many messages in this speech that you have to read it a number of times. This speech remains as relevant today as it was in 1890. Take the time to do a Google search (or Yahoo or Bing whatever you fancy), read the book, and then start to see what you can do with your own business.