Don’t run and hide
“Don’t run and hide. Keep talking and look for a win:win solution.”
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Don’t run and hide
I received an email today from an entrepreneur whose business faces foreclosure. The business has failed to pay their rent and the landlord has locked them out and is holding the assets as collateral. Rental debt continues to pile up and things are getting worse by the day.
When times are tough like this it’s very easy to fall into panic mode, avoid taking calls and to hide away from the inevitable. But hiding your head doesn’t make the problem go away, it takes you deeper into disaster.
My single most important piece of advice in a situation like this is to keep talking, talk more, not less. These 6 tips have been tried and tested – for landlords and other creditors:
- DO talk to your landlord and keep them updated with your challenges. No landlord likes to have empty premises and as good tenants are difficult to find, be the one that goes the extra mile to be trustworthy, open and honest. CALL THEM before they call you!
- DO look for win:win solutions – perhaps you could consider exchanging your outstanding debt for equity in the business? Perhaps you can find a trade exchange solution or get them to help you to expand your client network? REMEMBER – most landlords want you to succeed just as much as you do.
- DON’T promise what you cannot deliver. Don’t say you will pay in full on the 30th and then disappear without trace when you can’t. DO what you say you will, every time.
- DO cut back on all unnecessary expenses and look for alternative revenue if your business is struggling. Now is the time to hustle and perhaps pivot into a new market?
- DO address the problem swiftly – be the best tenant when times are good and start to plan before it happens if you can see the future is looking bleak.
And lastly,
- DO reach out for emotional and business support – chat to your family, a mentor, a business friend, coach or therapist.
Financial worries can quickly become a crippling fear. When we are in panic mode our intelligence drops, so we make poor decisions or become so paralysed we can’t make decisions at all.
Yet every single entrepreneur across the world has faced similar fearful, tricky and potentially devastating situations at one time or another. Those who succeed have a strategy to recognise and swiftly deal with the problem so they can recover and build back stronger. You can too!
