Financial Crisis, Turnaround Consulting

An independent business owner contacted me after reading several of my articles on business turnaround consulting and business process improvement consulting. She asked if I could help her. I asked if she would write me note about her situation. The following is her message:

Steve,

I decided to get in touch with you because I am very close to running out of cash. I don’t know how I will pay on my loan payments next month because at the moment I don’t have any funds for that.

I feel like I am really close to generating positive cash flow with my business but I am still stressed about how I will pay on all accounts/loans that I am responsible for. I feel like I just need to buy myself more time.

I am doing my best to maintain my positive attitude, faith, and belief but I am scared. I’ve applied for additional credit cards but have been denied. As a result, I’ve started to search for a job, which I know is taking my focus off of where it is I want to go.

Financially, I’ve never been where I am at the moment.

If you can help, I am grateful. Even if you are unable to,  I am still grateful.

Thank you,

————————————————–

I asked her permission to publish this on my blog as I have actually been planning to write an article about what many people are experiencing for a variety of reasons. Full disclosure: I am a business turnaround and business process improvement expert. I am not a personal financial planner, personal bankruptcy lawyer, personal financial counselor. My experience in this area are very direct and from the streets. If you would like additional support for what I about to tell you, read Bill Bartman’s book “Bailout Riches”.

Notice some very important words in this lady’s description of her situation: faith, belief, scared, “I am responsible”.  So my response is written for those who have similar feelings.

About Being Scared:

This is natural particularly since this is the first time she has found herself in this situation. The key is to acknowledge that and just move outside of yourself and observe it. This takes some practice but it can be done. Realistically, we become scared of losing our life, our “stuff”, a place to live and starving. In the worst case scenarios a woman will be not homeless. Nobody will starve to death and stuff can be replaced when the economic situation turns around. In my belief system I have learned how not to fear death. Once you no longer fear death then there is really nothing else to fear. On that topic “Home With God” by Neale Donald Walsch is a great read.

Now I know writing about fear and being scared does not make it go away. You can release these emotions. In fact you must release these emotions or you will have difficulty moving forward which is really what your intending to do. Now for the art of the practical of why you can expect:

I am going to assume she is fairly current on her payments and realizes that will change next month. My advice is to stay focused on immediate needs only while continuing to solidify cash flow from her business. Immediate needs are food, utilities and those service needed for her business. These generally include Internet service and phone service. TV service is not an essential. Car insurance is. The key is to evaluate true essential spending.

For now paying credit card debt and mortgage payments are also not essential. If you are a renter, you may have less time in your place than if you have a mortgage.

Going Forward

This lady mentioned feeling like her business is close to cash flowing. I recommend anyone who has a business ask someone else with business experience for a realistic evaluation of that feeling.  This is the number one item I work on in a business turnaround after addressing immediate cash management issues. With the confidence of how a liquidity crisis turns around you can navigate any obstacles. Now if you don’t have that confidence then you should begin pursuing plan B. She mentions looking for a job. That may not be her first choice but it may be a realistic stepping stone until she can turn her business cash flow positive. That is for her to decide.

What To Expect From Credit Card Companies and Banks

The reality is you will get a lot of phone calls. Most of these calls will be made by a computer. So it is a great idea to have a caller id phone that you can put on silence or vibrate.  You don’t want to answer a call unless you know the caller and you want to talk to them. The natural inclination is to want to talk to the representative on the phone. I don’t recommend wasting your time doing that until you can tell them you have restored your ability to pay.

Credit card companies will threaten to file suit. They won’t. Read Bartman’s book. You can become delinquent more than 90 days if it takes that long to restore cash flow. Close to the 90 day mark they will be willing to cut all kinds of deals with you. If you take one of them know that they will not reactivate your card. I know the credit card companies will accept settlement at 50% of the amount due and take that over 3-5 monthly payments. They do not want you to know that. And as soon as I write that I am sure someone will say there are even better deals than that.

I am not advocating not paying what you owe. However, the credit card companies have no problems charging very high default rates and late fees. Your responsibility is to position yourself to go forward.

Get used to the phone ringing and don’t take it personal. First a computer is dialing and then at some point when you decide to talk with someone because you have a proposed solution then recognize they are not your enemy or your friend. They are simply doing their job.

You can expect the calls to start at 8AM and end at 9PM Monday through Saturday and noon until about 8PM on Sunday.

Mortgage or Rent

Because mortgages go through a foreclosure process it can take quite some time from start to finish. Rent on the other hand is a bit more dicey depending on the market you live in. The meltdown leading to the high foreclosure rate has driven up demand for rental units. So you could be facing a situation of eviction 60 days or so past the due date.

Generally if you are able to pay a portion of what is due that will buy some time. Mortgages move from the normal mortgage service department to a foreclosure processing department. Expect notice of intent to foreclose and calls. Don’t panic you have time. But keep moving on you go forward plan. Foreclosures and evictions do happen.

Brief Summary

What I have tried to do is paint the picture of what you can expect. There are variations of course and timing can vary depending on the credit card company and bank. Ultimately you have a lot of room to negotiate just about everything related to debt. Utilities no since they will just cut you off. But debt yes. However, in order to negotiate you must have something to negotiate with. You ultimately have to have a source of cash flow to negotiate.

Help Others by Adding To This Article Using The Comment Section

Sharing with all my readers the energy of peace, happiness and abundance

Steve Pohlit, Expert Business Consulting

IR Consulting, Inc.

Email Me, Steve Pohlit to schedule A No Obligation Consultation On Building Your Business Profits.Need more customers? Let’s discuss how to use cutting edge Social Media Marketing in the revenue building cycle of your business to drive your profits sky high. If  your company is not growing revenue and profits,  if your company is not cash flow positive Click Here for more information about Turnaround Consulting Services for Business In Crisis

Follow Me and I Follow You
Join My Fan Page on Facebook  Click Here

FREE Report:
How To Increase Business Profits by 30% or More in 90 Days or Less



Busting Loose From The Business Game

In 2006, author Bob Scheinfeld published a book titled: Busting Loose From The Money Game.  I purchased the book based on the recommendation from another admired author and read it once  over the course of about a week.  I then went back and read it more closely, made notes, highlighted sections in yellow. In short I really studied this book.

I had not been exposed to most of the information in that book to that point.  I was very skeptical even after studying it in-depth. This was because the concepts were so different from anything I had imagined.  However, I found a part of me saying it made a lot of sense.

Over the subsequent three years,  I have learned that Busting Loose From The Money Game was based on what is known by scientists as the discipline of Quantum Physics.  During this time the movie The Secret was released. There has been a growing awareness of The Law of Attraction.  Quantum Physics  supports The Law of Attraction.

Here is a real life example from personal experience. If you have followed the articles published in this blog you know I have a lot of very valuable business experience.  I use this experience to  help companies improve their business performance and in some cases help them if they find themselves in a difficult situation (business turnaround consulting).

When I was near graduating from college I decided that I wanted to be a CPA and work with one of the Big 8 (at the time) firms. I visualized that experience as best I could, I interviewed with a few firms and I was not hired…then.  I ultimately relaxed that idea, but I did become a CPA and also went on to earn my MBA. Both were credentials I decided I wanted to have because one day I wanted an executive position and be in the board room running a large business. I felt those credential would help.

I was relentless on that idea. I felt certain it would happen.  Nine years after I was not offered a job with one of the Big 8, the number one firm in the world hired me . I went on to have a marvelous experience there for 10 years.  I left and went right to being a senior executive of a $360 million company.  I was in the board room with several other senior people running that company.  There is a lot more to this story including some of the near total disasters I experienced but the point is I attracted that which I was focused on consciously or otherwise.  That is The Law of Attraction.  “Like attracts like”.

Today in business and in all areas of my life I am continually creating the picture that I want to have appear.  Now if you asked my most recent client how that turned out they would say not very well.  I would say one chapter is closed and another is beginning.  Soon I will prepare another article on change and surprises. For now I say to you,  The Law of Attraction works perfectly all the time.  The problem comes in when the outcome isn’t like we thought it would be. Sometimes the outcome is much better and sometimes it isn’t.

In the situation I just finished, the bank decided it was in their best interest to liquidate the company.  There is no way on this planet in my lifetime I thought I would  understand the bank’s position given the alternative solutions presented to them. However, Bill Bartman’s latest book “Bailout Riches” offers answers.  Do you see I was asking questions and I attracted answers.  Not only that,  but I attracted  an opportunity to profit from the current conditions should I pursue what Bill suggests. I don’t think I will but you can.

I love understanding and increasing my connections with that which I intend to attract.  I love sharing what my experiences and insight on these topics.  Nearly a year ago I had an idea of how I could blend my passion for The Law of Attraction with my experience and skill set in business and particularly the consulting arena.  Shortly thereafter, a number of things began to fall in place and today I have along with my business partner have growing business based on The Law of Attraction. That business is Manifest Mastermind.  What is most important I work on what I love and some people like it enough to stay as paying members.  How cool is that?

My purpose has been to give you a glimpse as to why I immediately purchased Bob Scheinfeld’s latest book: “Busting Loose From The Business Game”  I have not read it as I just order it today.  I encourage you to order it and for transparency purposes I am not an affiliate and Bob hasn’t asked me to write this and certainly hasn’t paid me any money to do so.  For the record I am not opposed to being paid :).

I know this  book will have  as much influence on me as the first one I read and I am excited about all the possibilities.

Here is the link and if you decide to order, please tell Bob that you heard about it from Steve Pohlit.
<http://www.bustingloosefromthebusinessgame.com/opportunity.html>

Sharing with all my readers the energy of peace, happiness and abundance

Steve Pohlit, Expert Business Consulting

IR Consulting, Inc.

Email Me, Steve Pohlit to schedule A No Obligation Consultation On Building Your Business Profits.Need more customers? Let’s discuss how to use cutting edge Social Media Marketing in the revenue building cycle of your business to drive your profits sky high. If  your company is not growing revenue and profits,  if your company is not cash flow positive Click Here for more information about Turnaround Consulting Services for Business In Crisis

Follow Me and I Follow You
Join My Fan Page on Facebook  Click Here

FREE Report:
How To Increase Business Profits by 30% or More in 90 Days or Less

Newt Gingrich Writes: Once, We Would Have Called It A Scandal

In my business development consulting practice I encounter situations where filing for reorganization with protection of Chapter 11 of the Bankruptcy Code (Federal Law) seems to be an option. Consequently I follow with interest some of the more high profile cases. I am amazed at the application of this Federal Law. I was thinking it seems the rules are at times re-written for the convenience of special interests.

This email from Newt is a great report on the recent bankruptcies of Chrysler and GM. This is well worth paying attention to since the issues are not about Chrysler and GM, it is about the breakdown in our political and judicial system.
Newt’s entire email follows. Thank you Newt Gingrich.

Sharing with all my readers the energy of peace, happiness and abundance

Steve Pohlit, Expert Business Consulting

IR Consulting, Inc.

Email Me, Steve Pohlit to schedule A No Obligation ConsultationOn Building Your Business Profits.  Need more customers? Let’s discuss how to use cutting edge Social Media Marketing in the revenue building cycle of your business to drive your profits sky high. If  your company is not growing revenue and profits,  if your company is not cash flow positive Click Here for more information about Turnaround Consulting Services for Business In Crisis

Follow Me and I Follow You
Join My Fan Page on Facebook

FREE Report:
How To Increase Business Profits by 30% or More in 90 Days or Less

Once, We Would Have Called It a Scandal
by Newt Gingrich

There was a time when we would have called it a scandal.

In 1921, oil tycoon Harry Sinclair gave several prize head of cattle and around $269,000 to President Harding’s Secretary of the Interior, Albert Fall.

In return, Sinclair got the exclusive rights to drill in an oil field in Wyoming. Sinclair’s no-bid contract became the Teapot Dome scandal, the most notorious example of political corruption in America prior to Watergate.

Between 2000 and 2008, the United Auto Workers (UAW) union gave $23,675,562 to the Democratic Party and its candidates.

In 2008 alone, the UAW gave $4,161,567 to the Democratic Party, including Barack Obama.

In return, the UAW received 55 percent of Chrysler and 17.5 percent of GM, plus billions of dollars.

But nobody’s calling this a scandal. It’s time we start.

2000-2008 UAW Giving: $23.7 million to Democrats. $193,540 to Republicans

The almost $24,000,000 the UAW has given to Democrats since 2000 compares with the $193,540 the union has given to Republicans.

In the 2008 presidential election, President Obama was by far the biggest recipient of UAW contributions, raking in $27,340 compared to the $10,600 given to Hillary Clinton, the No. 2 recipient of UAW money.

And so it was no surprise to the cynical Washington political class when the payback began with the Chrysler bankruptcy.

In a rigged proceeding in which the federal government disregarded bankruptcy law in favor of the political outcome it desired, the Chrysler bankruptcy laid the predicate for the much larger General Motors bankruptcy to come. Against law and precedent, the unions were moved to the front of the line when it came to who would benefit from the bankruptcy.

The Obama Treasury Department strong-armed Chrysler’s creditors into a deal in which the UAW was given 55 percent ownership of the company while Chrysler’s secured creditors – investors who would have received priority in a non-political bankruptcy proceeding – were left with just 29 cents on the dollar.

On Monday, the Supreme Court Delayed the
Completion of the Chrysler Bankruptcy

Some of these secured creditors, led by a group of Indiana retirement funds, are fighting back. They’ve charged in court that the Chrysler bankruptcy violated the bankruptcy laws and violated their rights as senior lenders.

On Monday, the Supreme Court put a hold on the Chrysler bankruptcy to hear their case.

We don’t yet know which way the high court will rule, or if it will rule at all. But we do know what’s at stake. Indiana State Treasurer Richard Mourdock put it well:

“The issue of secured creditors’ rights is bigger than Chrysler. It’s an essential foundation of our capital markets. And fundamentally, this is about the law.”

“Never Has an American Union Done So Well At
the Expense of Shareholders and Creditors”

But the Chrysler bankruptcy was just prelude to the Obama-Administration-brokered General Motors bankruptcy deal announced last week.

The GM deal is yet another example of rank, taxpayer-financed political favoritism.

Once again, the big losers are GM’s bondholders, who include substitute teachers in Florida and retired tool and dye supervisors in Michigan. They hold $27 billion in GM debt but are receiving a 10 percent stake in the new company.

In contrast, the UAW, which is owed about $20 billion from GM, is walking away with 17.5 percent of the company and a cool $9 billion in cash.

According to one analysis, while the bondholders will be lucky if they recover 15 cents on the dollar, the UAW can expect to recover up to 60 to 70 cents on the dollar – four to five times what the bondholders will receive.

As Barron’s Magazine wrote, “Never has an American union done so well at the expense of shareholders and creditors”.

“At a Time When Some American Workers are Facing Stiff Pay Cuts, UAW Workers Gave Up Their Customary Paid Holiday on Easter Monday”

Of course, the Obama Administration has assured us that the United Auto Workers has made “substantial concessions” as part of the bankruptcies that have literally saved the union from extinction.

But as no less than the Washington Post put it, the “union concessions were ‘painful’ only by the peculiar standards of Big Three labor relations: At a time when some American workers are facing stiff pay cuts, UAW workers gave up their customary paid holiday on Easter Monday and their right to overtime pay after less than 40 hours per week. They still get health benefits that are far better than those received by many American families upon whose tax money GM jobs now depend.”

Union members also preserved their right to have six unexcused absences from work before they can even be considered to be fired.

Can you feel the pain?

The Unions Have Been Rewarded With
Ongoing Subsidization by the Taxpayers

It is a sign of the degree to which raw politics has dominated its handling of Chrysler and General Motors that the Obama Administration has a 31-year-old who has not yet graduated from law school determining the fate of two multi-billion dollar companies.


For their political support of the Democratic Party, the auto unions have been rewarded, not just with ownership stakes in two giant companies, but with ongoing protection and subsidization by the U.S. taxpayers.

The President has said repeatedly that he wants to get out of the auto business as soon as possible. But does anyone seriously believe that he would accept an arrangement in which GM becomes profitable at the expense of the union and its gold-plated benefits?

Having spent $50 billion to “save” GM and the UAW, does anyone really believe that the Obama Administration will now allow economics and not politics to dictate its future decisions?

In the GM and Chrysler bankruptcies, the Obama Administration has trampled on the rule of law.

It is using the taxpayers’ money to pay back a political group for its political contributions.

There was a time when we would have called that a scandal.

Your friend,
Newt Gingrich
Newt Gingrich

The US Govt. Agrees To Accept $68 Billion Pay Down of TARP Money.

The Treasury should be standing there with “arms wide open” to accept any of the TARP money a bank wants to pay back.  Our government charter does not extend to the bailout of private enterprise entities, bank, automotive company or any other.  However, we have allowed it and now that the funds have been disbursed, every effort should be made to get them back.  That may be the intent of our Treasury but it doesn’t feel that way based on the way it is reported.  (link to WSJ article below)

Related point: I am working a business turnaround situation with a client whose bank is a TARP bank. You would never know the bank has accepted money intended on helping business move forward.  We have a valid business moving forward plan where the bank does not even have to advance any more funds. However the cooperation of the bank is required.  They have chosen not to cooperate. I am told by other professionals  working with  companies and with TARP money banks that the attitude from the banks of not really helping is pervasive.

So the we allow the government to bail out these banks and the money is not being used to really help the economy.  Amazing.

Sharing with all my readers the energy of peace, happiness and abundance

Steve Pohlit, Expert Business Consulting

IR Consulting, Inc.

Email Me, Steve Pohlit to schedule A No Obligation ConsultationOn Building Your Business Profits.  Need more customers? Let’s discuss how to use cutting edge Social Media Marketing in the revenue building cycle of your business to drive your profits sky high. If  your company is not growing revenue and profits,  if your company is not cash flow positive Click Here for more information about Turnaround Consulting Services for Business In Crisis

Follow Me and I Follow You
Join My Fan Page on Facebook

FREE Report:
How To Increase Business Profits by 30% or More in 90 Days or Less

Here is today’s Wall Street Journal Article.

News Alert
from The Wall Street Journal
—————————-
Sponsored by NASDAQ OMX
—————————-

The Treasury Department said it will allow 10 of the nation’s largest banks to repay $68 billion in government bailout money.

The Treasury says the banks will be allowed to repay the money they received from the $700 billion Troubled Asset Relief Program funds. The banks have been eager to get out of the TARP program to escape government restrictions such as caps on executive compensation.

The Treasury Department did not name the banks involved, but Morgan Stanley said it is repaying $10 billion in TARP capital.

http://online.wsj.com/article/SB124455528999797923.html#mod=djemalertNEWS

The General Motors Bankruptcy: A Costly Solution

When a company cannot move forward with profitable operations because of accumulated debt  meaning they are not in a positive cash flow position, they must close the business and restructure. Either solution is costly. Restructuring with the protection of Chapter 11 of the US Bankruptcy code adds to the costs. 

The cost of restructuring is not because of the people working to restructure or the bankruptcy court. The costs are generally a result of mistakes in the past. General Motors has access to many of the best and brightest in the world.  With all this talent, they still managed to steer a company to bankruptcy.  That is sad.  How that happened will be guessed and reported on in many other articles and books. The purpose of this article is to give you a glimpse of what’s next. 

In GM’s case, there has been  an attempt  to negotiate a structure for moving forward prior to the filing.  An agreement was not reached.  It is my personal view from being close to a number of restructuring opportunities that in many instances a rational solution is ignored. When that happens it often is because most everybody negotiating is an employee of somebody. Consequently the number one item on the agenda is  “cover my ass.”

My turnaround and profit improvement work is often with privately held corporations where one or more people running the business are owners. Having held executive  management positions (employee) with large pubic and private companies and having the experience as a business owner, I can assure you there is a huge mindset difference.  The mindset of an owner is solution and action oriented. The mindset of an employee is “how do I get this done and protect my job”.  Of course there are exceptions and most would say my mindset has nearly always been that of an owner whether I was one or not.

If  your company is not growing revenue and profits,  if your company is not cash flow positive Click Here for more information about Turnaround Consulting Services for Business In Crisis 

Most of the restructuring of  GM led by the company’s respective employees and advisers  began prior to the bankruptcy filling p. Part of this included  the company saying to the US Government “bail us out since certainly baseball, apple pie and General Motors is protected by the US Constitution”  Our president (an employee who we hired) says OMG I can’t let the automobile industry crater. He and his subordinate employees throw a Hail Mary pass to fuel  the restructure with a lot of money…our money.  So the employees tell the owners of the money, the US citizens,  how it will be spent and the owners (us) just shrug and say “OK”.  

So the US Government steps in to the newly defined role of bailing out certain large companies and notice that the GM bailout did not avert a bankruptcy filing.  So the brain trusts that run our country decide to send billions of our money to a company that months later files bankruptcy.  Do such investments happen outside of Government bailouts? Of course.  Investment funds make decisions all the time that don’t turn out as planned. The difference is that they are not using taxpayers money.

Taxpayers’ money is not the only money at risk.  There are billions of dollars owed by GM that will never be paid back. The ripple effect of  radically changed business is huge. Thousands of companies linked to the GM supply chain will go out of business or already have, since GM will cram down the money owed these unsecured creditors.  They won’t be paid and they won’t have business fast enough to replace that lost. Of course the direct and indirect job loss is enormous.  Again, don’t blame the restructure plan or the bankruptcy process. This situation is a result of how this company has been managed for decades.

The bankruptcy is necessary since not enough people agree on the latest restructuring  plan promised to move GM to the land of profitability. So GM executives, advisers and others to benefit  we will carve out a deal using the protection of Chapter 11 of  the US Bankruptcy Code.  This is a federal law designed to offer companies the opportunity to restructure and move forward profitably. Great idea except there are a few things you may want to consider:

Who pays for the bankruptcy filing?

Who always get paid during a bankruptcy?

Where is management’s attention during a bankruptcy particularly during the early phases of uncertainty?

Answers:

The administrative (accounting, lawyer, trustee) fees associated with any bankruptcy are enormous and the people who are owed money prior to the bankruptcy are the main contributors to paying these costs.  For example, if a secured creditor is owed $10 million dollars, when the bankruptcy reorganization is filed, they may be offered 30% of the balance paid out over time  depending on how much money is projected to be available . Think of a home mortgage.  A bank holding the mortgage is secured by the value of the home.  Normally that is good protection but if the bank loaned 110% of appraised value then the value dropped 30% the security does not cover the amount of the loan. It looks as if the bailout money given to GM is at high risk of not being paid back 100%.  Time will tell. Unsecured creditors are  not likely to  get anything in a bankruptcy or pennies on the dollar. 

The company pays for the costs of the bankruptcy process including filing fees, trustee fees, attorney fees and  accounting fees. Of course paying for these costs means that money cannot be used to pay debt or suppliers. These costs are normally much larger than most people imagine.  These fees are always paid. In some cases the court will require a reduction in fees charged but usually not.

A bankruptcy filing is very disruptive to normal business operations. The attention of management and ultimately many others is on what is happening with the case. This is particularly acute in high profile cases that are covered by the press like the GM case.

If  your company is not growing revenue and profits,  if your company is not cash flow positive Click Here for more information about Turnaround Consulting  Services for Business In Crisis 

Are Their Benefits To This Process?

The company’s regular business operations are protected while the case is active meaning creditors are not able to pursue lawsuits or size secured property.

A creditor’s committee will ultimately approve a reorganization plan. This plan is usually one with fewer assets than were in place before the filing since a lot of money will have been spent on bankruptcy related expenses. Generally the plan is similar to what the company wanted to do prior to the filing but had to file because people could not agree.  Seems like once a company is in bankruptcy, employees who work for creditors are more likely to agree to a reorganization plan since they can always represent “well this is the best we could do as the company is in bankruptcy.” 

Some company’s emerge successfully from this process and go on to restoring profitable growth. In General Motor’s case time will tell.  There seems to be structural costs that will not be resolved in this case which are the labor costs driven by the union. Retirement benefits are being publicized as being a concern. Ultimately the company will determine what it is able to afford and changes will have to be made. 

Ed Koch has been retained as the turnaround expert.  His firm is very reputable and he has a number of notable turnaround successes. The one thing no one can predict with certainty is to what extent customers will want the product the company makes. The public has many choices and there may be too much resistance to this brand long term for any plan to be viable.  

The media is already reporting the estimated impact of the bankruptcy on jobs and the economy. They are missing a key point. The impact is not from the bankruptcy. The impact is from how this company has been run in the past. The consistent implementation of a profit strategy has not been in place. From the outside looking in it seems the focus has been on preserving high paying  jobs and lucrative benefits while placing secondary priority on innovation and a profitable infrastructure. If those priorities remain during and following this bankruptcy, the company will not survive.

 

Sharing with all my readers the energy of peace, happiness and abundance

Steve Pohlit, The Profit Expert

Email Me, Steve Pohlit to schedule A No Obligation ConsultationOn Building Your Business Profits.  Need more customers? Let’s discuss how to use cutting edge Social Media Marketing in the revenue building cycle of your business to drive your profits sky high. If  your company is not growing revenue and profits,  if your company is not cash flow positive Click Here for more information about Turnaround Consulting Services for Business In Crisis 

Follow Me and I Follow You
Join My Fan Page on Facebook

FREE Report:
How To Increase Business Profits by 30% or More in 90 Days or Less

The Key To Business Profits In A Difficult Economy

The phrase “cash is king” is widely recognized because it is true.  When you solidify cash flow you solidify your business.

Cash of course can be borrowed. For  many companies, traditional sources of financing are nearly non existent.  Lines of credit are being tightened and there is little or no room for  loan covenants variations.  In this and all situations, the sooner management accepts responsibility for  the state of their business, the sooner they are in a mindset for moving the business forward.  What are the primary options for restructuring a business facing these circumstances?  The primary alternatives are:

1. Secure a lending facility from a source that is not a traditional bank.

2. Negotiate a new note with your existing bank – very unlikely right now.

3. File a restructuring plan under Chapter 11 of the US Bankruptcy code – an action of last resort and very costly.

4. Sell the business: viable if your business is attractive to a strategic buyer. You will need a creative contract if you expect to get much more than having your personal guarantees removed from the debt.

5. Close the business and do something else. You may feel you may want to do that but be careful since if your business assests upon liquidation do not cover the senior debt, your personal assets may be at risk. In this environment institutions are taking homes .

You may be thinking the above is written for a business experiencing losses in market share and profits.  Companies with bright pictures being painted are experiencing the impact of banks not lending. The money channeled to banks from the government is not flowing through to  companies deserving loans.

For this reason, alternative sourcing of funds is often needed.  A lot of time and energy can be spent finding the right deal or you can select a firm with the contacts that will get this done quickly on your behalf.

Last week I was in a meeting discussing options, strategies and pricing for services. It is very common for owners to begin calculation how much money firms make when a deal closes. This money is commonly called success fees. I explained that success fees are in proportion to the solution delivered.  The right professional firms have the experience and the contacts to move quickly and get results. How valuable is that when considering the alternatives?

Sharing with all my readers the energy of peace, happiness and abundance

Steve Pohlit, The Profit Expert

Email Me, Steve Pohlit to schedule A No Obligation Consultation On Building Your Business Profits.  Need more customers? Let’s discuss how to use cutting edge Social Media Marketing in the revenue building cycle of your business to drive your profits sky high.

Follow Me and I Follow You
Join My Fan Page on Facebook

FREE Report:
How To Increase Business Profits by 30% or More in 90 Days or Less

Circuit City Files For Chapter 11 My Comments Reported in the WSJ

(Please Note: the best course of action is to take bold steps before have to file for Chapter 11 or worse a dissolution. I am experienced with crisis management, turnaround management and bankruptcy. Contact Me if you are worried about your business.)

Chapter 11 comes with a great cost including, legal, accounting and filing fees. The most significant cost is often the distraction of management’s attention from the core processes of the business. This filing raises more questions than it answers. The effectiveness of the company’s infrastructure in identifying and correcting the real reasons for losses should be under microscopic scrutiny.

Retail is won or lost one transaction at a time. It looks like Circuit City has a no profit pattern. It seems like this pattern is the core issue that should be resolved during this opportunity for reorganization. If not, the Chapter 11 reorganization will likely move to dissolution.

Ultimately, secured lenders will be fine. Vendors will be paid for new deliveries but are at great risk of not being paid in full for invoices related to deliveries prior to the filing. Landlords of closed locations can now begin to plan on what to do with that space as lease payments will be terminated during the Chapter 11 process. Other leases are likely to be renegotiated. Of course, there are large numbers of people who are now not working just as the holiday season is near for them and their families.

There is very little sunlight shining through with this picture. The glimmer of opportunity is for a structural reorganization to be defined and implemented that strengthens the core business. Should that occur, the purpose of Chapter 11 will have been fulfilled.

Steve Pohlit
http://stevepohlit.com
727-587-7871

Reorganization Under Chapter 11 of The Bankruptcy Code – A Last Resort

 

All Business Crisis Management and Business Turnaround consulting work is done with the direct involvement of Steve Pohlit, President of International Busines Consulting Resources.

I follow the five step process outlined on the main page my business crisis management site -click here. I will do everything possible to avoid a legal reorganization under the Federal Bankruptcy code. When that vehicle is necessary to protect your business, it must be a last resort. The reason is that the administrative costs of reorganization under Chapter 11 of the US Bankruptcy Code are huge. There are attorney fees, administrative fees of the court, trustee fees and professional accounting fees. All of these costs must be paid by the assets of the business or from concessions made by creditors. If your business is struggling, the sooner you call so we can begin addressing your core weaknesses the better.

My experience includes very successful business  turnarounds outside of bankruptcy court, successful turnarounds with the protection of the US Bankruptcy court and failures within the US Bankruptcy Court. I have turned around my own business that I purchased and was failing. I have worked with small and large companies, public and private. If you are concerned about the strength of your business you want someone who has personally been through the process as a business owner as well as an advisor. My business experience is extensive. If your business can be turned around, we will do it.

Steve Pohlit, President
IRConsulting, Inc

Offices:

Las Vegas:
3651 LIndell Rd., Suite D162
Las Vegas, Nevada  89103

Tampa
12233 94th St N
Largo, Florida 33773

Direct Phone Contact: 727-587-7871

Business Crisis Management by Business Turnaround Specialist

If your business is in a crisis there are several compelling reasons why you should call a Business Crisis Management Specialist. However before you do, please review the following and download your detailed report on The Exact Steps To Business Turnarounds.  It is possible you can do this yourself. However, it is likely to be in your best interest to use a business turnaround specialist.

How do you know if your company is in trouble? (For a complete presentation please visit Business Crisis Specialist )

Here are key indicators:

  • Do you worry about running out of cash?
  • Has your financing bank or lender reduced your line of credit or, even worse, called your loan?
  • Do most of your key vendors have you on COD?
  • Have any checks issued by your business bounced?
  • Are you delinquent paying taxes or benefit insurance?
  • Are revenue trends decreasing and accounts payable increasing?
  • Have your valued employees left for a “better opportunity”?
  • Are you spending all of your time fighting fires?
  • Do you wake up at night fearing you will be out of business?
  • Do you fear you will not have enough cash to meet your next payroll? What about the next?
  • Are you thinking or have been advised that a reorganization of your business under Chapter 11 of the US Bankruptcy code may be the answer?
  • Do you feel you are at or near crisis stage?

“If you answered yes to more than one of these questions, then you need to call me, Steve Pohlit,  at 727-587-7871 Right Now. That is my direct line. I will personally determine if I can help you solve your business problems or refer you to someone who can. This call will cost you nothing and may well save your company.”

Steve Pohlit, President
IR Consulting, Inc.
Turnaround Business Consulting
Restructuring, Recapitalization, Business Crisis Management

FREE Report: The Exact Steps To Turnaround Your Business
and Move From Crises To Profit

Name:
Email:

There Are Two Compelling Reasons To Consult With A Business Crisis Management or Business Turnaround Specialist:

  • An independent professional skilled in turning around business crisis situations, brings credibility to your business turnaround process which serves to quiet the companies and people fearful of not getting paid.
  • A key component of a successful business turnaround is developing and implementing a business plan for improved performance long term.  Enlisting the assistance of an independent specialist communicates to employees, creditors and the marketplace you are serious about becoming a stronger company.

One more thing – delaying can mean the difference between a successful business turnaround and having to close your business….or worse….having your assets siezed.

I will help you if at all possibe, but you need to make the next move!

Steve Pohlit, President
IR Consulting, Inc.
727-587-7871
Click Here for The Business Turnaround Consulting Practice
Restructuring, Recapitalization, Business Crisis Management

Turnaround Management, Crisis To Profits

The headlines today scream credit crunch and bank failures. There are two very important points to remember:

  • People are still spending money
  • Money is available to finance business

If your business is experiencing a profit squeeze and liquidity crunch, even those two points are not very comforting.  What you need is a laser beam focus on saving you business now.

Candidly, it takes experience, a serious but balanced posture and a clear plan that is implemented right now to save a company in trouble.  I have updated the symptoms of a business crisis situation as well as a detailed action plan  on what to do at my business turnaround site. This information is free.  If you are concerned I recommend you Click Here to visit Turnaround Management now.

Sending all my readers the energy of wellness, peace and abundance

Steve Pohlit,  www.StevePohlit.com

Network with me on Facebook: LinkedIn: Follow me on Twitter

Steve is the President of International Business Consulting Resources. His firm specializes in guiding companies to rapid increases in revenue and profits with a sustainable growth rate. Don’t miss my FREE Report: How To Make More Money With Your Business Now and Long Term I am building my practice and welcome new client inquiries. Call me for a fee consultation at 727-587-7871

This report may be freely distributed without restrictions with the original content including this resource box remaining unchanged. Author: Steve Pohlit, Business Consulting Services, Executive Coaching, please visit www.stevepohlit.com