Was It Time for a Wakeup Call?

I have recently been hearing about organizations that are under “financial duress.” According to reports, they have been losing money for over 10 years and just recently decided to make some adjustments… Of course, there were plenty of “excuses.” First there was COVID, then we couldn’t hire sufficient help, then we saw inflation, the Fed raised interest rates, and, alas, now we are being subjected to tariffs…

As I said, they have now decided to make serious adjustments and develop a plan. Actually, their lenders likely decided that the company needed a plan for change. They may have been reaching a scary point on their “Burn Rate.” This is the amount of time a company has left, given their current rate of losses, before all their equity is gone. For example, if we have $1,000,000 of equity and lose $200,000 per year, we have five years left before all our equity is gone, assuming nothing changes.

This is not a fun position to be in. I also recently learned of a Homeowners Association that plans to assess each of their homeowners $25,000 to compensate for “deferred maintenance” in their community. This is a prime example of how past decisions, or lack thereof, can hurt future generations, because eventually the “toll will get paid…”

It reminds me of the old Sunoco gasoline commercials, where the mechanic suggested that we should be using their high-quality gasoline to minimize engine repairs later. While it was more expensive per gallon, he stated that you can “Pay me now or pay me later.”

I have one question for you to consider. Are there decisions or actions that you have been deferring into the future? Given the current economic situation that has resulted from COVID, hiring challenges, inflation, higher interest rates and/or tariffs, do you need to rethink how & when you might address some challenges in your life or business? If so, start to address them today. The future success of your family, the availability of necessary financing, or your organization’s very survival will be dependent upon it!

As I stated in my last blog, you will be better prepared for success, i.e. “Ready for the Big Dance” when better times arrive, instead of sitting on the sidelines, wishing you were more prepared. If I can assist you with this process, please let me know. It’s what I do best!

“All you need is the plan, the road map, and the courage to press on to your destination.”

                                                            Earl Nightingale

Let’s take your business to the Next Level!