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When You Lose 70 Per Cent of Your Business Volume, That's a Bad Thing!

By Joseph McDaniel, Esq.

Small businesses often start with a good idea, and then the execution of that idea determines how well the business will flourish.

On the other hand, most businesses have what are called fixed expenses; if you have enough business and enough of a margin to run your business, and to pay those fixed expenses, like rent, your business has a chance of growing up to be a big kid.

On the other other hand, if the entire business environment changes radically during the infancy of your business, good luck! You'll need it!

For instance, it is commonplace for business buddies in the community here in Phoenix and Scottsdale and Chandler and everyplace else in Arizona to tell me that their volume is off fifty per cent, and that they are hanging on with teeth and fingernails.

But if you have a baby business, and seventy per cent of your volume evaporates, you are probably going to be talking about your former business, and then wishing that the real unemployment rate wasn't so high. 

Because then you could find a, you know, job!

And then you get to track down a bankruptcy attorney in Phoenix (you will note that most bankruptcy lawyers with credentials and experience tend to cluster around the middle of Phoenix; that's because you don't want a loooong drive to the Bankruptcy Court to use up productive time during the day, because somebody in your firm will be driving to First Meetings of Creditors! And you will figure out when you look at the map provided by the Bankruptcy Court where most filings occur.)

Now, hopefully things will get better soon in the business environment in Arizona.

And it can't be too soon for me.

But until real unemployment rates go up, I don't see how businesses like restaurants and construction companies and hair salons and dental offices can expect an upturn, because people are simply deferring all non-essential spending right now.

If they're smart.

Full post as published by Arizona Bankruptcy Attorney Blog on January 24, 2011 (boomark / email).