How Not To Lose Your Business

Table of contents:

How Not To Lose Your Business
How Not To Lose Your Business

Video: How Not To Lose Your Business

Video: How Not To Lose Your Business
Video: 10 things I learned after losing a lot of money | Dorothée Loorbach | TEDxMünster 2024, April
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For many companies, one of the main and sometimes the only way of business development is attracting a strategic investor. The most optimistic hopes are associated with its appearance, but it is not always taken into account that an unscrupulous investor may have his own plans for the company in which he invested money. Creditors can also pose a threat to your business. In order not to lose their business, entrepreneurs must always clearly understand, respect and protect their commercial interests.

How not to lose your business
How not to lose your business

Instructions

Step 1

Don't be overly gullible. Collect as much information as possible about the investor before making a deal. It is quite possible that he already has companies acquired during the investment on his account, and you could become a potential victim. Do not disclose confidential business information to the prospective investor that is not directly related to the transaction. This is especially true for information about customers, suppliers and customers.

Step 2

Do not skimp on competent legal support for such transactions, the conclusion of which must be documented, with which you can subsequently go to court. If you transfer confidential information to the investor, enter into an additional agreement about this and keep confidential information that may interfere with the process of taking over your business.

Step 3

But you can lose your business not only by “letting” a strategic investor into your company. There are known cases when lenders and, in particular, banks that provided loans to an enterprise acted as the invaders. The most banal, but no less valuable advice that can be given in this case is to avoid delays in payment of loans, which are an "insured event" and give the lender the right to repudiate your property.

Step 4

Overdue debt can be generated artificially by the lender himself. This is done simply - it is enough to indicate in the loan agreement the wrong details of the recipient, and you run the risk of not returning the borrowed money in the terms that are stipulated. In this case, severe penalties begin to apply. Company property can be seized and foreclosed on company assets.

Step 5

Think well before attracting investments or taking large loans to grow your business. Consult with lawyers about possible financial risks. If you can do without the funds raised, do not use investments and loans and try to do it on your own.

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