Public Embarrassment Is Nothing To Fear In A Workout

I hear about this issue over and over, the emotional fear of public embarrassment, people believing such exposure will prevent any emergence as a viable business. “I know my banker, and do not want to screw him.” This is an emotional response that prevents the business owner from engaging in a workout, concern over hurting the banker’s job or offending him since he “trusted” you.

Small business owners confronting impossible debt service, unable to stay current when experiencing decreased revenues, must make a hard decision. It is simple, overbearing, unaffordable debt that will force you out of business. Do a workout or become a statistic. I believe this is an easy decision. Your family and your employees are depending upon your emergence, your ability to overcome the problems challenging your very existence. Public embarrassment is hardly an issue worthy of consideration. Really, you are confronting disaster.

The reality is that there is no public embarrassment surrounding a workout effort. It is a battle we are all fighting and we all understand the magnitude of the economic downturn we are confronting. This is a worldwide problem and not a reflection of your business skills. In fact, those that figure out how to survive are leaders to be followed, not failures to be scorned. It is easy for me to say this, however, I am speaking from hard, hands-on, direct experience having implemented hundreds and hundreds of workouts in the past few years and thousands over our thirty year history. I can report that this fear is emotional and not based on reality or experience. The consumer is more savvy.

Frankly, your survival and emergence is seen as a huge victory and you will become a hero amongst your peers. You survived and figured out how to win under adverse conditions. I remind you all, in 2009, 1.5 million businesses closed. Those that survived are the heroes. Your community will support you. They always do. They want you to survive and will admire your tenacity and commitment and will applaud your carefully crafted, successful plan to overcome the challenge. Your employees will spread the word and there is nothing to be embarrassed about. In fact, you are a hero.

As for your banker… really, it is not his money, it is the bank’s. You have done your best. Your implementation of a quality workout is a service to him and his bank as it delivers the most possible for the least cost and actually works for the bank as well as for you. Doing the right thing is never wrong and a workout is absolutely doing the right thing for both the defaulting borrower and the lending bank.