Diagnosing the cause of a business’s failure is relatively easy. There comes a point where the stakeholders can no longer afford to keep the doors open, but more than that, it’s the result of simple human exhaustion. But there are many ways that it can get to this point.
External factors
From market disruptors to simple, primary competitive advantages, the market prioritizes efficiency, and if a company can’t keep up, it will be left behind. However, there is a significant difference between competitive advantage and unfair competitive practices.
Financial problems
Even businesses with a strong market and good products can find themselves in difficult financial straits. Perhaps the company took certain financial actions based on faulty projections. Perhaps factors outside the business’s control created massive problems.
Leadership problems
With the other factors, there is an opportunity for a business to get through the hard times. A company can take steps to even the competition or resolve financial problems. A leadership problem can tear a company apart at the seams through ownership disputes that touch on such issues as:
- Breach of duty
- Poison pill contracts
- Shareholder oppression
When it comes to ownership-group conflict, there is a high risk to the life of the company. When things devolve to litigation amongst the top people running a business, it doesn’t look good for the future.
Strength when you need it
However, as we mentioned above, a company dies when those in charge of running it gives up. You don’t have to give up on your company because you’re in a fight for your life with business partners and shareholders. You can fight to keep what you built. You can stand up and defend the company that is your livelihood and legacy.
It may not be easy, but if the fight is worth it, then you can find representation willing to go the distance to keep you going.