This year 3 clients have contacted me in situations where they are out of money and things do not look promising. It is important to note that they are not new businesses and have been around for awhile, have a customer base and provide a product or service to the market. So how did they run out of money? Unforeseen circumstances (like not being paid on large invoices), unbudgeted costs (like a software fix), slow down in sales leading to cash flow gaps are all reasons and each of them are unique in their own right.
So what do you do if you are the owner? I suggest pulling off the band-aid and to stop drinking the kool-aid. What I mean is that it is better to work with what you have instead of working with what you think you will have. For example, one of the businesses I chatted with has an investor that is looking for this money back and the business owner has not shared with his investor that they have limited inventory from which to generate revenue from. Worse than that is if all the inventory was sold there may not be enough cash left over to repay the investor. The business owner is holding out hope that things will work out and somehow the inventory value will go up and maybe the investor will get their money back.
So here is an interesting question: what do you hope in? As a Christian, my hope is in God and that He is in control of circumstances and I am not. You might agree that we are not in control of circumstances, but then you have to ask – who (or what) is? We all hope in something. You either hope in yourself or you hope in something else – what is it for you?
I remember Chris Sacca (a venture capitalist) say something along the lines of “we look at ourselves when we experience success and we look at the market when we experience failure” when in reality it’s the reverse. We are lucky when we experience success and when we fail it is our fault. Some go further to say that the “luck” strikes those that work the hardest but don’t get trapped thinking that circumstances are the cause of your failure. You can adjust and respond and it is more productive to pull off the band-aid and to stop drinking the kool-aid so that you can deal with reality which ultimately speaks to your integrity.
If you think you need some help with your debts, a mortgage or a loan, feel free to get in touch with us. We’d be happy to help.
“A fool thinks himself to be wise, but a wise man knows himself to be a fool.” – William Shakespeare
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