Running a business — big or small — is no easy feat, as some Maryland residents know. Business owners have to find a way to sell their product or service, pay their employees and their landlord, adhere to federal and state regulations, manage day-to-day operations, and still make a profit. Running a business, however, is not about simply maintaining an operation. Business owners have to constantly be looking for innovative ways to improve and keep their product or service on the cutting edge. When consumers constantly change their minds about what they want, this can be very difficult.
Iconic camera maker Kodak spent the last several years feeling the pressure of consumer demand. While film cameras used to be the norm — and some still swear by them — consumers have dramatically shifted their preference toward digital film. As Kodak struggled to keep up, executives eventually decided to file for Chapter 11 bankruptcy. Now, is starting over with all new products.
Last week, Kodak emerged from bankruptcy. Along with a new financial start, the company announced it will be taking its business in a new direction. Now, it will focus on providing personal printing technology for consumers as well as document imaging for businesses. Executives believe that the company could become an industry leader with its new model.
As Kodak’s experience shows, when a business gets too deep in debt, sometimes Chapter 11 bankruptcy is a viable way out. In addition to wiping out some debts while reorganizing others, Chapter 11 allows a business to stay open and perhaps refocus its efforts to allow for a fresh start after bankruptcy.
Source: The Inquirer, “Kodak exists bankruptcy selling digital and personal imaging business,” Carly Page, Sept. 4, 2013