Owner To Owner Podcast
Richard Shrapnel, leading business strategist, outlines his 7 step plan for business owners dealing with financial distress.
Episode Summary
Richard Shrapnel has just released his third edition of Going Broke Staying Sane, a practical workbook. In this episode he talks through the 7 key steps small business owners need to take to deal with and overcome financial distress.
Episode Notes
@RichardShrapnel is a #BusinessStrategist and has deep experience working with the owners of #SmallMediumBusinesses. His strength is looking at how businesses are performing and where they are going. He has recently updated and published a third edition (to take account of #covid19) of Going Broke Staying Sane, a workbook to help owners facing #financialdistress to work their way through those problems.
The workbook outlines a 7-step process to help when things don't go as expected - when #cashflows dry up or when you're aksing yourself "What do I do?".
It's especially relevant now following the covid-19 lockdowns and the likelihood that so many #SMEs have been hit hard.
In our discussion we talk about;
- finding a way through but expecting scars
- the many types of businesses that have been impacted #restaurants #tourism #hospitality
- the apparently low number of #insolvencies to date and the potential for numbers to escalate when business people stop hanging on
- the sneaking, slow, gradual pathway to #financialdistress
- #DeathByAThousandCuts
- #hardquestions;
- how much do I dig into my reserves?
- How much do I increase the debt which I'm carrying?
- How much do I pull out for my superannuation to try and keep the business alive?
- How much do I allow the outstanding commercial rents to grow?
- the natural tendency for small business people to lock themselves down and not share the difficulties with their family because they don't want to take the burdens of the business at home
- the importance of #connectingwithpeople around you, of #sharingtheburden
- the #sevensteps
- Accept - it's not about saying it's okay, it's about accepting
- Clarify - getting the facts on the table - so what are my losses? Where are my assets? Where are my liabilities? Whose name is on the line? Who were site guarantees? Whose assets are exposed? What are the opportunities?
- Action - what are my options? What can I do? What is the exposure? How do I mitigate that exposure? What can I save?
- Champions - the people going to have your back. They believe in you, they want you to succeed. They have some business sense. They're honest and they'll cord as they see it
- Be Real - do not surrender your values. Just compare the actions and decisions you take against what is important to you
- Care - maintain your emotional, mental, and physical fitness.
- A Light - you need to look for that by creating something, that light at the end of that tunnel, which you can hang onto and pull yourself out
@kerrcapital