Last week, this blog – being of a positive, sunny disposition – gave some advice on what to do before starting up a new business.

However, since many businesses are in the opposite situation, contemplating their possible end rather than their beginning, some helpful advice on that subject might be timely for some:

1   Do not declare personal or corporate bankruptcy unless you have no reasonable alternative – when the pressure is really on, it might seem as if it will be a relief to get out, but you will regret it later if you jump unless you have no choice;

2   At the same time, be brutally honest with yourself about your situation;

3   Accept that you are in for a tough period but resolve to get though it – this too shall pass;

4   Do not stick with a failing business plan – there are always choices;

5   Do not panic – you probably have more options than you realise, but you must sit down and think clearly;

6   Cut your expenditure ruthlessly – an obvious point often ignored in practice;

7   Explore all opportunities to liquidate surplus assets and establish new streams of immediate income;

8   Focus on your core business, the activity that actually generates cash;

9   Talk frankly with your creditors when your situation can no longer be concealed – most do not want to have to deal with the hassle of your going bankrupt and will probably be open to compromise;

10  If bankruptcy really is inevitable, take the initiative yourself and do not let your creditors do it;

11  The creditors to whom you have greatest moral obligation usually have fewest legal rights – so make every effort to take care of them before the liquidators take over (but be sure to stay within the law); and

12  Start thinking about your next business – make sure no one loses out who might be important to that new business.