Turnaround Specialists Show You How to Finance Your Struggling Business
As turnaround specialists, we see firms when they are almost out of cash and can’t make payroll. This is the most difficult time to find extra money. But you must find it to survive.
Here’s the riddle that turnaround specialists face when they come into a troubled company: The company needs money, but no financier will lend or invest into a financially distressed business.
So how do turnaround specialists find financing? They must find alternative sources the CEO, CFO, management team and board would not think of or are reluctant to follow.
Before we tell you what to do, let us tell you what NOT to do. From our turnaround specialists’ experience, you are wasting your precious time looking for financing in the conventional sources such as banks, investment banks, bridge financiers and venture capitalists.
Regardless of how hard you try, how professional your presentation, or how many well-connected people you know, you will fail in getting financing from these capitalists. They will not invest in a sinking ship. Period.
We have seen so many businesses fail because their management team wasted months and months on a fruitless pursuit of conventional financing.
Here’s is what you should do to finance your business:
Look first at internal sources of financing and more cash flow. You must stretch your vendors, cut unnecessary costs and employees, sell assets and divisions. You must restructure your debt. Frankly, you will have to pull yourself up by your bootstraps. Other than turnaround specialists, no one is going to be there to help you.
If this does not produce enough money for you firm, then you will have to look at some alternative, high priced and high risk funding choices. These include factoring and dipping into your own pocket (and others on your management team and board) to find the necessary funding.
Please do not let this web page discourage you. Turnaround specialists save troubled businesses everyday using these methods to find needed capital.
The best publication on how to save your firm is the turnaround specialists handbook, The Insider Secrets to Saving Your Business: The Step-by-Step Turnaround Guide. It covers alternative financing sources in detail.