I am glad that I get not only readers but also co-authored
It is a colossal opportunity to look at the business things from another perspective. Because I have the same experience for you – other. By sharing with each other with their knowledge, experience and insights – all jointly overcome the crisis, right?
This article was sent Oscar Ziemelis – the operator with five years experience in the production of illness. One of those strange Latvians, who believes that only a generation can save the country from the pit. Often described as a sharp and sarcastic. Strīdējies with SRS Head, who called on him at work, because he could not find the arguments against the allegations. Itself, he says: “The director (company manager) dreamed to become an early age, when the Soviet times, my mother asked him: which teaches directors? Since then, playing in the factories has come to real production. It continues to play well today. ”
Once come to the insolvency of an unhappy coincidence. But after klupiena and comes back determined to prove to the world that the idea of strength. And Oscar is ready to announce that bankruptcy does not end the world!
In recent years, worldwide economic downturn has been influenced not only the great America, but also small in Latvia. It goes without saying that the first of their wallets may experience economic problems, it is just business. Of course, the wisest of time thinking about it, get replacement or rapid reorganization of the company, but some come in a situation when confronted with the word bankruptcy.
If you remember the Latvian classic film, “bankruptcy is when nothing else is.” This is the harsher of the scenarios when the receiver and takes away all the hitherto difficult and hard earned created cherished dream turns into ruins. Only the very strongest it as a rugged storm rather than end of the world. Most, however, to suffer severely, because we really – owners brand their company as a child. It is enclosed in the root and then take care over the years, year and by type of. All of this is you!
As it comes up normally? The major promoters of the bank’s bankruptcy. This means that the formation of a development takes credit for the purchase of fixed assets, construction, repairs, upgrades. By the beginning of any problems, delays in loan payments, the bank begins to look thoughtfully and, if they list it says that your company led the industry has no prospects at the moment, the bank will do anything to recover their funds lent, which is quite logical. It should be remembered that the bank has the same business, as each of the firm owners, only one comment of “what is money, it has the power”. This means that the bank will not care whether your company after the “attack” will survive or not, it is only important for your money. Much of small business owners personal error is the owner and his relatives a guarantee, house, etc. pawning personal property. The Bank will spare you! Do this only if you are 100% confident that the borrowing will be able to pay a short period of time rather than five or ten years. None of us is a prophet to predict that a given sector will take place in ten years. Do not believe the too optimistikām pareģēm, they will not repay your loans. In conclusion, if in doubt at least 1%, do not take loans against personal security.
The next error is related to the credit, but this time with a small cash loans that were once part of different light hand bank web of complex settings. To settle such loans as a company, it was quite difficult, but as an individual it could settle almost overnight. If you are a self-employed, write a problem statement that you are receiving a high salary, as well as by telephone to confirm that such and such work in your company and get as much as the application is written, there was no. Employee of a credit institution but does not know what to speak. When derived for the money, invested in the company and here we come to identify economic problems, the company goes bankrupt, but the debt lenders remain as an individual. Then the bank will not require employees to be held and that the crisis in the country. They will ask for their money. The lesson is – do not take loans, which are intended to firm as undifferentiated credit. That’s why companies are called limited liability companies. You as the owner has only partial responsibility for the situation. If the bankruptcy process is not malice, you personally can not take away anything. But it definitely does not mean that this statement is ambiguous.
Latvian law provides that a company’s insolvency may be proposed by the company to another company long owes more than three thousand (previously $ 1000). Daily for transactions within a month short, fat years, the situation of one thousand lats was within almost everyone. Each other were all in debt, but the transactions arranged and the money was transferred. Until everything is going and the work of propelling the work of these small debts do not feel the same. But when a recession occurs in the country, everyone wants to get his thousand and not tomorrow or the day after tomorrow, but now. If the situation linger and fail to repay the debt, the creditor may bring an action in court, the forced recovery of the debt or even bankruptcy claim. Of course it is not cheap and credit atguvējam have to pay the fees for filing an application. Therefore, this situation usually occurs only if the debt is very large, well over one thousand lats. The new bankruptcy law there is the possibility for the court to require timely remedy. If the court will prove that the restructuring is possible and the company will be able to repay all the debt, probably none of your request will not be able to initiate insolvency. For more on this and should read the Insolvency Act, the explanation is illustrative. The lesson – if at all possible, do not take anything for post-paid, and if there is any debt, pay it gradually for small amounts and regularly than not pay at all. If, of course, understand that the situation is critical, then see if the insolvency of the submission itself is not the best option to make that point. If someone has to die, let it do. Long-term respiratory support, if he has already become a coma, not always be successful.
You may find that your company is in debt, and therefore begin to be careful because it can lead to bankruptcy, the other decides to apply for bankruptcy. It remains to slip into the role of the opposite party in the situation described in the preceding paragraph. How to avoid an event? Do not give goods (services, the trauma will be less) on the basis of payments. History proves that it can go bankrupt even large chains (such as “Tapro”), not to mention the small shops and businesses. Carefully check who your buyer. If the company is new, use extreme caution, since it never can be well not to grow. Also watch out for customers who need very quickly, because the burning times, etc.. Precisely in those cases where a beaten something is burning, you customer Prescribe advance billing and only when the account has fallen into a certain number, buy supplies, and ķerieties to work. If your company only all buy in advance, be just as carefully and ask for money from their customers in advance. Threat that the customer will go to another company, think about whether you really want the customer. Maybe let him go. In the worst case, ask for at least a partial advance. Conclusion of contracts do not deal because the contract may be waived. The contract makes sense only if there is enough money to run through the courts. Question – do you like it and will it need? If the customer claims that you do not trust, and fear that the order will not be met, and this situation is to think about whether you trust the client. Solution for an advance of 50/50 good. This means that the risk of both. However, if izdosiet of stock items without requiring the other party money, the customer will be knowingly and cunningly shopped at half price. Most manufacturers not only in Latvian, shall not produce a product, upon the payment of 100% advance. If the clients are working long and is well know, of course, you can use a variety of discounts on payments, but be careful, if the delay is longer than one month, then start asking for money, otherwise it will take you to those who owe you. About working with big chain stores are worth a separate topic.
Several problems can cause economic crises and lessors of premises owners. In some cases, landlords may be considered space, the property and goods, the store leased premises, show case automatically belongs to them. That is not true and any foreign company’s unlawful appropriation of property is illegal. Fight, it is quite difficult, so it is desirable to secure in advance. School of life proves that lease space from companies that are in some way related to your former job, before you start running a host, may prove to be solid wood wheels. Also remember that even though it may cost padārgi, replace door locks when you start your life in new premises. This is the simplest way to avoid a situation that in your absence makes the space owner, because you have delayed payments. Of course, not always so crazy, but would recommend the most careful of owners who have some connection with the administration, members, etc. for people who have a degree of superiority. If the owner you seem unsympathetic and negotiating a lease, there are more and new charges that previously were not, think about whether you need just this room. A good tip is to – nenomājiet more space than you actually need it. If the case really lucky, always looking for more space will not have problems, but the overpay a long time just because you think that space will be useful, is silly. It is true that the move paid something, but rarely are cases where development is so rapid that they get to be a need for two months after the occupation. And, yes, for rent kaulējieties down, especially now, when free space is much more.
Once you have received the registration certificate, the first institution in the form of a letter at least you interesti, will the State Revenue Service. No matter how sad it would be, Latvian, this institution is a service rather than repressive authority. Although there are signs that this is changing, however, the SRS by the people not always understand what it means to be an entrepreneur. Arrives at the box office of the SRS, you can be seen as potential criminals rather than a national savior, as you have so far appeared. SRS employees have their own comfort zone. They tend not to have studied business administration or economics. If you owe taxes – criminals! They receive a certain salary specific date of the tax that you are with your sweat you have carefully created. SRS employees tend to not understand where it is the income that their salary is directly dependent on how good and not bad for you, as an entrepreneur, good luck. Support and carry sensation from the SRS do not wait!
At the beginning of the economic problems that usually appear to be just the wait and the tax payments you make later. On the one hand, it also will be some time in the country on a temporary basis, but the hail out of heaven you will be a surprise – the bank accounts were blocked and all the money that they have had, the SRS is ruthlessly acquired the uncontested basis. There, you can not change anything. This means that as long as not paid FULL tax debt accounts will be blocked. Of course, the recipe, which the law does not stipulate. As a business, you are entitled to hold accounts for some or all Latvian banks. If one SRS account locked and you have it, however, it will work, rather than helpless hands down, open the next. For several months, or until re-save new tax debts will be able to continue to work quietly. One of the most important aspects is still time to cast the tax reporting, especially when the money problems. Like Love and Respect your accountant and then Pay first, because his advice and the ability to handle figures, can be temporary or long-term basis to improve cash flow and adjust taxes so that the accounts but no blocking. Also, even if the accounts blocked and if you know that have to enter the customer money, the law provides that workers’ wages are sacred and they should be first. All this explains the law and your accountant needs to know. If you do not know, look for another!
The situations described here are typical for Latvia, which businesses may face when the business is no longer available. They are typical for small businesses directly. If you have grown big and powerful, then fight with all the bogey is very different. But for the life taken, bankruptcy does not end the world. Business can always start again. In addition, if you have clients who trust you, they will trust you even if you have started another company. If there revenue is decreasing, you need to get up. An American economic gurus said, “if you have not gone bankrupt twice, then are not a real businessman.”
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