It is a common reaction when a small business is in trouble for the owner/MD to hope the problem will resolve itself.
Indeed most owners and MDs live with pressure every day and have seen it all before, the cash has been found to settle creditors, They toughed it out last time so why not this time.
Cash flow pressure and the prospect of insolvency threaten the loss of a business which has involved a lot of passion, energy and money where like any loss can lead to feelings of anxiety or fear, even of grief.
It is hardly an ideal state of mind in which to address the causes of the problem and very often the initial reaction is denial. This can lead to a number of feelings such as anger, blame and despair all of which get in the way when trying to think logically and rationally.
But the longer the delay the more overwhelming, and dangerous, the situation becomes.
Behaviour is normally instinctive and directed by an emotional reaction rather than logical thinking.
Saving a business however requires rational and logical thinking so that decisions can be made and implemented.
This is where trusted colleagues and friends or professional advisers are key to providing the support needed to help make the right decisions which all too often can be personally painful. A form of tough love. Especially when change to a business is needed to both save it and prevent the problem recurring.
Please feel free to let us know about such painful decisions you have made.
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