THE SHAME THAT DARE NOT SPEAK ITS NAME
Thursday, October 17, 2013 @ 11:53 AM
How times have changed. Today we are encouraged to offload our feelings and our weaknesses. Sins once unspeakable are now accepted but there is still one that dares not speak its name; debt. Most of us will at some time look into the fiscal abyss. Why are we too embarrassed to talk about it?
The self-employed are the most vulnerable as few can predict the whims of fashion. We cannot foresee a local development or competition that negatively affects our business. Nor can we anticipate a change in the law that will impact on our cash flow. Many self-employed are owed money and are thus exposed to their client’s good or bad fortune. If you experience cash flow problems the worst thing you can do is ignore it.
The inability to pay your bills doesn’t necessarily mean the plug will be pulled on your business. However, refusing to share your problem with suppliers will likely scupper it.
In a manner of speaking your suppliers are your business partners. Chances are that they too have been in a similar position at some time of their working lives. They are best positioned to understand your situation. I can tell you from long experience that by placing your cards on the table you will receive sympathy, understanding and support.
I recall a builder who, through no faulty of his own, experienced a cash flow crisis. Biting the bullet he shared his dilemma with his suppliers. Apart from the milk of human kindness it was in their interests to assist their customer out of his crisis. On hearing of his misfortune his suppliers rallied around him. Putting his debts on hold they continued to supply him on a budget arrangement that was affordable and mutually beneficial.
When I met this builder years later he was doing well. He had in the meantime earned the undying respect of those he had at one time ‘let down.’ An interesting parting thought. According to a UK survey, self-made entrepreneurs had on average been bankrupt seven times before they made it to the top.
Michael Walsh was employed by the Federation of Master Builders and the Guild of Master Craftsmen over a twenty year period to vet and guide large and small businesses. A freelance journalist he now assists his Russian speaking wife to translate and supply advertisements to Spain’s Russian media.
www.michaelwalsh.es