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Fort Worth Bankruptcy Blog

Critical financial mistakes from new business owners

You're going to start your own business, and it's safe to say you're excited about what the future holds. You have dreamed of this day for a long time. You don't want to make any mistakes. You know that the business world is unforgiving and that many businesses fail in just the first year or two.

One thing to keep in mind is that many new business owners make critical financial mistakes that they later regret. Some of these include:

  1. Taking on too much debt prior to earning. Yes, you may need to spend money to make money, but it's dangerous to put yourself in a position where you have to be wildly successful right away or you will not be able to pay off all of the debt that you have.
  2. Underestimating how long it will take to succeed. Some business owners seem to have this idea that the first few months may be hard, but they can get through it. Remember, for many businesses, financial success takes years. You have to plan accordingly.
  3. Buying things that the business does not need and cannot afford. You need to pick your battles when deciding what you need and what you want for your startup. Maybe you have this dream of giving your employees company cars. You may get there eventually, but buying a small fleet of cars before you launch ties up a lot of your capital in expenses that have very little return.
  4. Buying things that you do not need and cannot afford. Owners also make the mistake of buying into the persona of the young, successful business owner instantly. They want to buy a new car, a new home, a closet full of new suits and much more. They draw a heavy personal salary, rather than investing the money back into the company.
  5. Forgetting about taxes. No one pays your taxes for you as a business owner. You must put aside money to cover those costs.
  6. Spending everything without considering a future decline. Maybe the launch goes well, so you decide to start making all sorts of purchases and expanding the company. Is that really wise? If you spend every cent that you have, you can't cover the costs if business dries up or you have a few months with below-average sales.

Avoiding foreclosure with Chapter 13 bankruptcy

Your home is likely far more than a piece of real estate to you. You may have spent years or decades molding it into your dream home, raised your kids there and created countless memories.

The Dallas-Fort Worth area has seen decreased numbers of foreclosed homes since 2018. However, Texas homeowners facing the prospect of foreclosure may feel overwhelmed at their options to save their home. While you may attempt every alternative to bankruptcy, those struggling to manage an insurmountable debt load may benefit from considering filing for bankruptcy.

How to regain your financial health

Virtually all Americans live with debt to their names. Sometimes it’s looming medical bills, other times it’s personal loans. Often times, though, people live with the stress of credit card bills. The numbers can vary, but the average American household lives with $5,000 - $10,000 worth of credit card debt.

It can be hard to see the light at the end of the tunnel, but it is possible to push through. These are a few of the most effective ways you can get back on your feet, get your accounts back into the black and move forward to your next chapter.

5 things you can do if your business owes tax debt

You have worked hard to build your business.  If your business owes money to the IRS, you may have felt helpless as you watched the debt grow. You don't want to lose everything you worked for over taxes. The good news is, there are steps you can take. Here are five things you can do if your business owes money to the IRS: