“To get out of trouble, it is important to be aware that you have problems. This isn’t easy. (…) Other people often realize this before we do.” Marc Bergeron.
According to the data of the Office of the Superintendent of Bankruptcy, 1,690 Quebec companies went bankrupt in 2014. This is more than half (54.2%) of the number of commercial bankruptcies observed in Canada. Should we be worried?
An alarming situation? Marc Bergeron’s expert opinion
For Marc Bergeron, Partner and Vice-President, Recovery & Reorganization at Raymond Chabot Grant Thornton, a guest on the Argent channel on August 12, this situation is less alarming than one might think. The expert points out that the number of business bankruptcies is relatively stable over the past few years.
Marc Bergeron also mentions several factors that could explain the importance of the proportion of Quebec bankruptcies relative to total commercial bankruptcies in Canada. “We have a lot of SMEs in our economic fabric, we have a lot of entrepreneurship, and these may be among the factors contributing to this situation, especially when we know that some startups don’t make it through the first seven years.”
Having some difficult periods doesn’t mean you won’t succeed, the expert explains. He gives examples of several business personalities who had financial difficulties, Donald Trump, Pierre Péladeau, Luc Maurice and Alexandre Taillefer.
The warning signs of a business in trouble
To maximize your chances of success, it is essential to recognize the warning signs of a business in trouble. Marc Bergeron lists several warning signs, such as repeated deficits, liquidity problems or postponing payment of taxes. Find more information on factors that may lead to financial problems for your company at RaymondChabot.com.
“To get out of trouble, it is important to be aware that you have problems. This isn’t easy. (…) Other people often realize this before we do,” Marc Bergeron explains. This is why the expert recommends that every entrepreneur work with a “mini board of directors”, which will have the critical distance to recognize alarming signs soon enough and thus prevent critical situations.
The sooner you act, the more you will be able to implement a viable solution to set your activities back on course to profitability. If you are concerned about your company’s financial health, you could start by evaluating its condition with the tools available on RaymondChabot.com.
08 Sep 2015 | Written by :