I was speaking with a friend of mine this weekend. His situation is as follows:
- He runs a business that a year ago was doing 3MM in revenue with almost 500K in ebida. The business was growing 15+% per year.
- He bought a big commercial building for 4MM and has 2.5MM in debt on the building.
In the last six months:
- His business has been cut in half and ebida has been cut more than 50%.
- He hasn't been able to rent the commercial building and is using (more) debt to keep current on payments for the building
- Each month that goes by, he is risking bankruptcy (of one form or another).
My advice to him was as follows:
- Meet with 3 people whom you respect and present your business plan for dealing with your personal financial crisis
- After you get feedback, devise a plan and be aggressive in attempting to renegotiate debt with all lenders.
- Sitting back and waiting for solutions to appear is not a good strategy ....(Nor is waiting for a tenant to rent the space)
Sound familiar to anyone you know?