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We Don’t Want You as a 2016 Liquidation Client–Analyze Your 2015 Financial Statements!

December 6, 2015

yellowclosechifavThe 4Q of 2015 is about to close.  If you are now an operating business, we don’t want you as a 2016 liquidation client.  Analyze your 2015 financial statements today!

Last year at this time, I was mostly working out of the Starbucks inside the local Barnes and Noble, remotely working from my Weirton office. In 2015, came a tornado of change:

  • New Weirton office
  • New Pittsburgh office, with renovation
  • New Paralegal
  • New Of Counsel
  • New administrative assistant
  • New logo
  • New website
  • Four firm-sponsored marketing events within 4 weeks in Oct/Nov: Halloween Parade, Weirton Christmas parade, WVU Tailgate, Pittsburgh Holiday Open House.

Whew. Last year, I would go swimming almost every other morning, leisurely doing the backstroke at LA Fitness. This year has been a doozy. Gone are my mornings of leisure.

For my business in 2015, I chose the path of growth. I want my firm to be a premier boutique, full-service business law firm with top notch attorneys, experts in each field of business law with an ability to assist our business clients with most if not all of their legal needs.   That is my vision. That means hiring more of the right people, getting a space big enough out of which we can all work.   More furniture, more computers.   Spreading the word.

It is a leap of faith. It is sticking your neck out. It is risk.

But what has all of this meant for my bottom line?

I have for years used a bookkeeper to maintain my books, as should any business (DO NOT TRY TO DO IT YOURSELF). I use Langol & Associates, LLC (412-576-8989) ( We have my 2015 financials almost complete.

Before 2016 starts, I know I must look at my 2015 books closely. MUST. Balance sheet, income statement.   I am getting the breakdown detail of income stream by client, breaking down my travel, marketing, rent, and consulting expenses. I am getting year by year comparisons. This is what turnaround consultants do for distressed companies.   We do financial autopsies to see what line of your business is making money, what business decisions were profitable ones, where can we cut costs, what debt can be negotiated, in what should we invest?

Many distressed companies that come to me to consider Chapter 7 (dissolution/liquidation) or Chapter 11 (reorganization) often, for whatever reason, have books and records that are not updated, inaccurate, or (GASP) non-existent. DO NOT BE ONE OF THEM! Also, the principals for YEARS have not had time or do not MAKE the time to look at the numbers. CASH IS KING. The Proof is in the Financial Pudding. Do not turn a blind eye.   I know I won’t. You shouldn’t either.

If you need a sounding board regarding any personal or business decisions, do not hesitate to contact me. That’s what we do. 412.427.7075.

Salene is a business and bankruptcy lawyer and certified turnaround consultant.  This blog post does not constitute legal advice.

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