The Downturn Will Continue So Do Your Workout Now
Small business owners heed this warning: The downturn will continue.
Yes, some areas of the country are experiencing some improvement in various industries. Even real estate is demonstrating some improvement in certain locations. But do not be fooled by this. The issues are deep and remain totally unsolved, in fact are even exacerbated, made worse by this illusionary “fix” recently perpetuated by our government leaders. The debt remains unserviceable and spending is way out of control while jobs are still disappearing.
We are not in recovery. We will fall deeper in to the hole as our economy continues to shrink.
The simple answer is that is you must do your debt workouts and remove the unaffordable debt service yoke from your business so it can survive further downturn. Failure to do this will result in further stress and certain downfall. Why now? Because you are stronger today than you will be tomorrow and thus are more capable of handling the requirements of a debt workout. You probably have more capital today than you will next week – that is the nature of a downturning spiral, faster and deeper decline each day.
You can always implement a debt workout, however, the sooner you do it the more resources you will have and the more successful it will be. There is nothing to wait for and there is no upside to delaying the inevitable, there will only be a greater loss.
