In today’s technology-rich digital age, small businesses have more expenses than ever before. While these expenses all open up incredible marketing and product design outlets for small businesses, the increase in number and variety of expenses also leads to an increase in the potential for going into debt. If you own a small business that’s deep in debt, Behm Law Group, Ltd. can help you file for bankruptcy in St. Peter, MN.
Because the commercial system of today’s world has grown so complex, it’s inevitable that many businesses struggle and fall into debt. For example, the sports car company Zenos—a tiny enterprise by the standards of the auto industry—recently declared bankruptcy. After losing a major investor and having several orders for their new model of the E10 cancelled in the US, Zenos was left with debts racked up from product building and marketing expenses.
Quality Product: Despite the technologically-sound craftsmanship of the Zenos E10 models, cars widely considered to be potential rivals of Alfa Romeo, Mazda, and even Lotus cars of similar caliber, the company continued to lose money after the release of their newest models. Of course, this is just one of hundreds of examples of popular companies with great products falling off the industrial map, proving time and time again that a quality product doesn’t get your business off the ground and running forever. What it really comes down to is money, and a substantial amount of money for small businesses comes from investors.
Investors: In the case of Zenos sports cars, the company gathered a loyal cult following of fans of unique cars who appreciated the well-crafted Zenos products. Unfortunately, while a cult following is often the sign of an innovative product, it also frequently can’t support a company as whole. When the small batch of investors that Zenos largely relied upon could no longer support their investment, the company quickly lost money, and the straw that broke the camel’s back came when U.S. orders were cancelled.
Even small businesses here in Minnesota can recognize the importance of investors going hand in hand with a quality product to support all of the necessary expenses.
Debt Payment: Zenos is on the market for new investors, and if the company can find one, they will be able to start a debt repayment plan under UK bankruptcy codes. However, without proper cash flow, Zenos—just like any other bankrupt small business—will have to liquidate its assets in order to discharge debts.
If your small business is struggling financially with no possibility of meeting debt payment requirements, Behm Law Group, Ltd. can help you work through filing for bankruptcy in St. Peter, MN. Contact us today at (507) 387-7200 for more information.