Ethical vs legal business operation

there is a little ‘legal’ restructuring mechanism that has become the toast of ‘good strategical advice’ to businesses of late. A comparatively mysterious process called ‘administration’.

i have to confess entire and complete incompetence and ignorance in the past in regards to the full meaning of the term, in addition as the meaning of it in exercise. Possibly you may have too – but seeing that i’ve come throughout this ‘term’ leastwise 7 times in a amount of time of 4 months – i’ve decisive that i really do must discuss it!

as an advocate of ethical business and ethical franchise modeling, i am in fascination and awe that this business system is one that a great deal of, a great deal of business owners have turned to as a manner to ‘get out of hot water’. I realise that there are galore challenges today in running and operating a business, much fewer surviving tougher economic climes, but i am horrified in this new trend. I nearly feel as downhearted as when i listen in regards to the increasing divorce rate internationally. My question of ‘why get married in the first place’ may be asked too of business owners who have failed to manage their businesses well, and how they are being rewarded with this easy way out to clear their decks.

in layman terms: ‘administration’ is a method whereby whether or not you find your business in a tough place of not being profitable and not being competent to pays your creditors (although not rather at the bankruptcy stage) – you may turn to professional ‘business recovery specialists’ who will counselor and guide you through a path of taking you neatly out of the hot water. . . And then ‘protecting you’ from your creditors and laborers asking for money from you. And then, as a cherry on top, give you the time and opportunity to open your doors again the next day – doing the same business, but under a dissimilar name. (may you feel the emotion behind my words here? )

the consequences:

• a big backlash on little business who lose clients and are lumbered with bad debt (i. E. They are the creditors who have been devoted to offering the merchandise and services to support the business owner do his business)

• the laborers who have worked hard to support the business owner keep his business going and thriving in the past – don’t get their salaries, get no real notice and get very little in compensation

• the business owner really has to ’start throughout again’ because no-one wants to touch him or his business because of how he let them down

so, i guess my message to the business owner who is taking into account this path of ‘recovery’ is to use a healthful balance of good business sense and being compassionate to the parties involved. I realise that occasionally business owners have to take drastic measures to save their businesses, but my only wish is that they engage their laborers in the move and be more empathetic to the affect it has on them and the creditors too.

i may be naive, but i do think that outstanding business leaders consider everybody of their activenesses before they take them and step forwards in the most skillful way to lead others carefully to the other side of inconvenient and troublesome situations.