The number one problem is not seeking help soon enough.
Okay, now that we’ve gotten over that. The other number one problem is cashflow.
If you don’t have money on hand to pay your employees, to buy merchandise, to buy goods. If you’re a restaurant… to buy the product you need to serve your customers that fresh food they want, you’re out of business.
Cashflow is everything. You need cash coming in the door in order to keep the business open.
And when you get professionals in to help you through this process, you’re going to hear about the 13-week budget. And that 13-week budget is all about cashflow. It’s about how much cash do you have on hand in order to meet your obligations.
Cash is King.
Your lenders want to know how they’re going to get paid back, and they want to know how you’re going to stay in business without an infusion of cash coming from them.
Without cash coming in, it’s impossible to stay in business. You need to be able to pay your employees. You need to be able to buy product. You need to be able to service your customers.
Cashflow is everything. Lenders don’t want to fund a business that they view as being in distress.
So, cashflow is the number one issue you’re going to be facing. And you need to focus on it now. It’s not about EBIDA. It’s not about what you can do three years from now. It’s about how your business can be self-sufficient today, and how the lender can get repaid in the relatively near future. We’re talking three months, maybe six months, not much more than that.
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