Worst case scenario planning

- Business can be unpredictable.…Business partners let you down,…contracts fall through, a supplier raises prices,…or a competitor cuts theirs.…Any of these and an infinite number of other things…can push your business into dire financial straits.…If you're a business owner in a partnership…or sole proprietor status, you need to know…that you may be on the hook personally…for debts incurred by your business.…You have to be extra careful in these situations…if you think your business is in trouble.…You don't want your business to destroy…your personal finances.…

Limited liability companies and corporations…on the other hand insulate the owners'…personal assets from the business…so that the business can close and it will not…have an impact on the owners' personal finances.…But regardless of business structure,…dire financial straits are defined…as having more expenses than income,…having little cash in the bank,…and not being able to meet financial commitments…like salaries, accounts payable,…or debt repayments.…But business owners are a resourceful bunch.…