When you hear the word "reorganization" you probably rightfully think of Chapter 11 bankruptcy, which is a section of the Federal Bankruptcy Code that usually pertains to businesss (although individuals can also file chapter 11).
But when I use the word "reorganization" I am speaking of something else. It is related, but it is not quite the same, because I am definitely not talking about you invoking any section of the bankruptcy code - unless you must.
But to reorganize means to basically start over, to try something different, for try a new way or idea with your business.
Sometimes that is not only a desirable thing, it is a necessary thing. Look at what Bernie Madoff did to all those big companies (and maybe some small ones too) on Wall Street. He basically bilked investors out of over $70 billion dollars of their hard earned money, through the use of a ponzi scheme.
You better believe that a lot of those people are going to have to reorganize. Many are left destitute with nothing and they are going to have to start from scratch - if they can. If they can't, they are finished. Life is over for them.
As a small business owner, there may be all sorts of reasons why you may find yourself having to start over. It could be an act of God, but it could be an act of man. It could even be from your own mistakes and missteps. It doesn't matter.
The trick is to recognize when you are at the point that reorganization is required. And act in a focused, controlled but expedient way, to make the necessary changes to get you from wherever you find yourself to where you need to be.
2 years ago
