Decision Making
A business owner has big decisions to make when considering what to do when their business is suffering. Do they pivot to save the business? Do they sell the business? Do they close the business? Do they need to avail themselves of the Bankruptcy code?
In cases where the business owner is only one person, the decision falls squarely on that one person. However, if there are multiple owners, the decision must be made by all of the owners. For instance, if the entity is an LLC, what does the Operating Agreement say with respect to decision-making? In most states, there needs to be unanimous agreement to close the business. If a company is a corporation, what does the state statute say about closing the business?
Mentally closing a business can be difficult for an entrepreneur. The entrepreneur may feel like a failure or may not see how badly the business is suffering, i.e., they may be in denial. Understanding how the entrepreneur feels is important when meeting with them.
📖 The SBDC and SBA have a Business Resiliency Guidebook to aid entrepreneurs. You should be familiar with the concepts presented therein.