Zombie businesses are out there, and whilst they aren’t exactly coming to eat your brains, it takes brains to avoid sharing their fate. Your small business may even already be a zombie business — or slowly becoming one, without you even knowing it! If that doesn’t sound healthy, that’s because it isn’t.
What Is A Zombie Business?
A zombie company is a business entity that barely manages to stay operational. It may earn just enough to keep running or may rely heavily on lenders to stay afloat, but isn’t earning enough to pay for its own growth, or to reduce its debts. That often puts it just one unlucky event away from collapse — making it a high-risk proposition for investors.
To be fair, most businesses start like that.… Read the rest