In Times of Trouble

By Bruce Firestone | Uncategorized

Nov 28

If your business or organization gets in trouble, where can you go for help?

I have advised many firms facing a cash crunch and these are the folks they go to for help (in descending order of priority):

a. Mentors/coaches/trusted peer–  advice, support
b. Sponsors, advertisers, strategic partners/investors– increased investment, ads, sponsorships
c. Suppliers– extended terms and cash
d. Clients– additional orders, cash advances, deposits, progress payments on existing orders

e. Shareholders, Directors, friends and family– personal savings, home equity, shareholder loans, director advances, share purchases (from treasury)

f. Competitors– orders, loans, overflow contracts, key partnerships

g. Employees– ESOP (Employee Stock Ownership Program)
h. Asset sales/inventory liquidation– turn assets into cash
i. Bank/other lender/receivables factor/vulture lender/lender of last resort– higher credit limit, extended terms
j. Bankruptcy trustee– protection from creditors, orderly rearrangement of affairs
These stakeholders want you to survive (but for different reasons). You must appeal to their self interest; get them to see why supporting your company is in their best interests.
Prof Bruce
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About the Author

Bruce is an entrepreneur/real estate broker/developer/coach/urban guru/keynote speaker/Sens founder/novelist/columnist/peerless husband/dad.