Lately I’ve been hearing from many businesses that are saddled with debt. Not just your typical operating cash-flow debt, big debt.
Big debt is dangerous and constrictive. The guys who get rich have cash during the worst of times. They go shopping. Those who fail float their businesses on a sea of red ink.
The economy is very, very tough for most businesses. If your business is operating in the red, bleeding, you had better make a serious correction quickly.
It may even be time to quit.
Where to start.
You must forget about yesterday. You must forget about what you have sunk into the business. You must look only at what you can do today. Looking back at the pile of money being left behind will cause you to drive into a wall. Look ahead. What’s done is done.
Build your margin. Raise prices. Let sales decline. Reduce overhead. Get to the black. THEN you can start re-building sales.
If you have no sales?
Maybe it’s time to quit.
How to know when it’s time to quit? Consider what you have put on the table. Is your home double mortgaged? Credit cards maxed out? Family ties a little strained? If yes, you are too deep. Consider trying something new. Consider folding up. Going deeper into debt will not make you a hero.
Changing direction isn’t quitting.
Don’t know which direction to go?
Read a book. Call an expert. Take a class.