Be Smarter than our Politicians…When it isn’t Working, Change Course

The entire world’s economic growth is hampered by overwhelming debt and too little revenue to support it.  Despite this obvious reality, many of our politicians think that in order to solve this problem and create new growth, we should just spend more and increase the debt load.  We all know how this will end up…..eventual default.

Your business and personal life are no different.  I had a client recently from Florida who wanted to solve his business problems like any politician would.  He wanted the bank to extend him additional credit so that he can expand his construction business and recapture his lost client base.  In a down economy, with high unemployment a stagnant housing sector, he wanted someone to extend him credit?  My client was out of touch with reality.   In addition my client would have additional debt payments on top of the ones he was already struggling to make, why would he subject himself to this?  What kind of a turnaround plan is this?  Who would ever take a chance on him anyways?  The business was simply not viable with the amount of debt is was carrying.  It took him a while to finally realize this brutal truth.

We short sold the business and negotiated an offer in compromise on his behalf saving him over a million dollars without filing for bankruptcy.  My client is now free to start a new business, go back into the workforce or do as he chooses without the shackles of the old debt weighing him down.  Instead of kicking the can down the road like our politicians, hoping for lost revenue to come back he faced the challenges straight on and swallowed a very bitter pill.  He is now much better off on the other side and wishes he had done it sooner.