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Small Businesses: Stop Ignoring the Whale in the Room

I had a client with the following issues:

  1. A lawsuit that could bankrupt them,
  2. Employees stealing from the company,
  3. Severe cash flow issues.

 Their strategy seemed to be to:

  1. Create new corporate entities, transfer assets and let the existing legal entity go bankrupt,
  2. Ignore the personnel issues,
  3. Keep working for free for a client who was not paying them,
  4. Dream up new ventures,
  5. Ask for money.

After many discussions we convinced them to:

  1. Stop working on the program in dispute; instead work to resolve the issue.
  2. Stop the legal shenanigans.
  3. Focus on the markets where they could sell their expertise.
  4. If it makes sense to bring in an outside investor to help finance one specific new initiative, do it. Otherwise, forget it.
  5. Manage their cash.
  6. Change their culture.

Address the big issues first. Don’t be afraid to wait to ask for help like this company did. Visit our website to learn more. Follow us on Twitter.