When General Motors and Chrysler were facing bankruptcy our government stepped in, handed both companies a ton of our money to reward them for failing, and then allowed them to pay back these “loans” with money obtained through a different tax payer funded scheme.
There is another way companies can void bankruptcy and it doesn’t involve stealing money from the tax payers. This method, although hardly known, is to produce a better product. A recent story I came across talks about Rovio, the makers Angry Birds. It seems before publishing their title that everybody and their grandmother has probably played they were facing bankruptcy:
First they had to save a company in crisis: at the beginning of 2009, Rovio was close to bankruptcy. Then they had to create the perfect game, do every other little thing exactly right, and keep on doing it.
Now the company has something like $50 million on hand. What an amazing concept, a failing business bringing itself back from the brink by offering a product or service that people want. It’s such a novel concept.