We Have Met the Enemy and He is Us!

Yes, once again, we are our own worst enemy.

We are in a deep dark recession, revenues are down 20-80% depending upon many factors, yet you take huge losses instead of responding as you should. You do not downsize quickly enough or deep enough and as a result you tank yourselves.

I met with a potential client who drove up from NYC to talk, meet and enter into a contract. After much discussion about his issues, he lamented that he did not downsize fast enough or deep enough. He reported that six of his employees whom he believed he needed, had little to do and eventually began to under perform even for what they did have to do. Their attitudes got defensive and argumentative as everyone covered up the reality, they were not needed and they eventually looked for and found other jobs and quit or were laid off.

Further as his revenues plummeted from $5 million to $1.5 million he continued to allocate larger and larger amounts to debt service of notes he could not possibly afford, wasting vast amounts of capital rather than supporting his business appropriately and effectively.

The score? He computes he wasted approximately $500,000 on these two mistakes, almost costing him his business, and would have, had he not met up with us.

We can stop the waste of cash now, but the damage has been done and now he has a darker and larger hole to climb out of... for no good reason... he did it to himself.

The moral of this story has been repeated throughout my blog. We are in a semi permanent down turn. Downsize deeply and immediately... now. Workout your debt today.

If you need help, call and we will arrange a no obligation teleconference for us to discuss your options.