Ten Best Ways to Fail in Business
As a business lawyer I have seen clients trash their businesses in a number of interesting and inventive ways. Over the years a few strong recurring themes have emerged. Here is a list of the very best ways to kill your business. If you are anxious to put the poor company out of its misery quickly, I recommend combining several of these tips:
- Take in partners. To fail faster, take in more partners. Partnership is an inherently unstable business structure. Over time even the smallest irritations can rub the relationship raw.
- Don’t pay the government: use the money you collect for HST and employees source deductions as working capital instead. The inability of a business to meet its trust obligations to the government is an early warning sign that the business is in trouble. Ignore the warning and the business will fail.
- Whatever you do, don’t seek professional advice. Why would you pay good money to a lawyer, accountant, realtor, insurance broker or other professional? You know best, Right?
- Do not keep a proper set of books, or if you do, for goodness sake don’t learn how to read or analyze the financial data produced by your business. Why prolong the agony by knowing the crash is coming?
- Never get it in writing, and never read what the other guy puts in writing, until after you have signed it.
- Give personal guarantees to everyone who asks, and, if they don’t ask-volunteer! ( oh, and by the way always do business as a proprietorship, never as a limited company, to make sure all your personal assets are at risk. )
- Do business with crooks. Borrowing money from bikers could put you in the hospital.
- Turn all of your employees into “ sub-contractors “ and save big on source deductions.
- Invent your own business structure. Standard forms of business organization, are boring, after all.
10. Screw around: Employees, partners, customers. It doesn’t matter, as long as your getting lots of action. Sex is more fun than keeping an eye on your business.
This article written by well known Langley Lawyer Chris Green. For more info go to www.greenlaw.com