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Many Small Businesses Operating Month-to-Month, Leaving Them Open for Financial Ruin

Posted on in Business Law

Cook County business law attorneys, small businesses, financial ruinSmall businesses are, in many ways, the backbone of American society. They represent a dream, a way of life, and take us back to a time when things were simpler, more personal. Small businesses were also key in helping the country find its way out of the Great Recession, and they provide jobs to 35 percent of America’s workforce. Sadly, many small businesses are also at serious risk for financial ruin because they are—like most working Americans —living month-to-month. If you are a small business owner, learn how you may be able to protect yourself from costly legal pitfalls.

Is Your Small Business at Risk? 

While there are some small businesses that have an effective safety net, most are at serious risk for financial problems. In fact, a recent analysis determined that, on average, small businesses have a daily cash outflow of $374 and an inflow of $381, leaving them with just a $7 difference between what they are making and spending each day. Furthermore, the average small business “buffer” reserve only covers about 27 days of closure. Some have as few as just 13 days.

What all of this means is that even the smallest hiccup—a lawsuit, a closure due to extreme weather conditions (flooding, snow storm, etc.), a decline in business, or even a slight hike in their insurance rates or rent—could lead to a financial catastrophe. If another economic crisis were to occur, this lack of sustainability could also place the entire economy and American workforce at risk.

Protecting Your Business from Legal Pitfalls

There are several ways that small businesses can protect themselves from financial ruin. One of the smartest and more affordable options is to seek an attorney who can work directly with your business to prevent potential legal pitfalls before they actually happen. This can mean ensuring that your employee handbooks clearly outline your expectations to reduce the risk of litigation, or it can mean helping to ensure that you are keeping up on the most recent employment and tax laws. Whatever your needs are, our attorneys can help.

At A. Traub & Associates, we understand the challenges that small businesses face. Backed by more than 15 years of experience, and a small business ourselves, we respond to your needs with an honest, straightforward, and personalized approach. We thoroughly assess your needs and craft a reasonable solution for your business. Our Arlington Heights business law attorneys can even act as your in-house counsel on a fee-for-service plan that protects your business at a manageable price. Get the skilled protection that your business deserves. Call 847-749-4182 today. 

Source:

http://www.usnews.com/news/articles/2016-09-21/small-businesses-surviving-month-to-month-says-jpmorgan-chase-institute

Illinois State Bar Association DuPage County Bar Association Northwest Suburban Bar Association American Inns of Court DuPage Association of Woman Lawyers National Association of Woman Business Owners Illinois Association Criminal Defense Lawyers DuPage County Criminal Defense Lawyers Association
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