Some Of You Are Holding On To Your Businesses Way Too Long
You must be realistic. If it doesn’t work, kill it!
We have the time-tested and proven strategies that are capable of removing debt and preserving assets. In fact, we can give you a second chance for your business to succeed.
This sounds too good to be true but it is nonetheless true. We do it routinely every single day.
The problem is that some business owners are too emotionally committed to their business to make the right decision and the right decision may actually be to liquidate the business and close the doors. The allure of operating a business with no debt is very compelling. Yet, the reality is that the business in question may already be operating without paying on their debt and is still not breaking even. Thus, removing the debt load provides the business with no cash flow benefit. The business will still not run successfully or profitably. So, why continue it?
Some business owners will sit tight hoping that things will turn around, that things will get better soon, that revenues will return and that if they simply wait long enough they will prosper… especially since they have no debt. Other business owners are simply too emotionally attached to their business and don’t want to kill their dream.
A rationalization that I frequently hear is the desire to recapture a large cash investment already made that will be lost completely if the business is shut down. Another common excuse is to stay open in order to protect the jobs; good people are depending upon the business for their livelihood and the owner has an obligation to continue. By this time, in a failing small business, the owner is probably not even taking a check but continues to want to fight the battle.
It all makes little sense, emotions seldom do. Regardless, it’s all too frequently the reality we confront. In a word, ego is what prevents the right decision from being made and for a variety of bad reasons.
The challenge is an effective and responsible evaluation of the business model. If it cannot earn a profit on the current revenue without paying debt service then the business is simply not worthy of saving. This also includes the owner taking a reasonable paycheck and still making and retaining a profit.
If you’re not, then kill the business. Change the model, sell the assets but do not continue to operate as you are even if we can strip the debt away.
Yes! We can remove the debt and free a business to operate successfully. However, successful operation AFTER debt reduction is the real issue. So, if you can’t do it, get out. If it doesn’t work, kill it.
