Financial advisors, avoiding BK(corp). Layin it out there, not pretty. - Page 6

motion · 11-19-2007, 01:38 PM

Wow, a hundred responses... you are really blessed to have this kind of support from some very knowledgeable people.

Len... its too late for you to start learning how to be a salesperson. The answer to your situation is to increase your sales. You need a heavy-hitter NOW to hit the ground running and starting busting down the doors. You need a FULL SCALE marketing ATTACK from all angles. It seems simple: go find a very successful salesperson who already has the contacts and knows your biz. Offer him a reason to come on board with your company. Let him do his thing, while you back him up with professional collateral and support. Seems like if you have the right person or people selling your products, and your customers are paying on time, your problems are solved.

lendaddy · 11-19-2007, 01:57 PM

Quote:

Originally Posted by motion

Wow, a hundred responses... you are really blessed to have this kind of support from some very knowledgeable people.

Len... its too late for you to start learning how to be a salesperson. The answer to your situation is to increase your sales. You need a heavy-hitter NOW to hit the ground running and starting busting down the doors. You need a FULL SCALE marketing ATTACK from all angles. It seems simple: go find a very successful salesperson who already has the contacts and knows your biz. Offer him a reason to come on board with your company. Let him do his thing, while you back him up with professional collateral and support. Seems like if you have the right person or people selling your products, and your customers are paying on time, your problems are solved.

I am extremely thankful for all the support and guidance.

Motion, I see where you're coming from and we're contemplating taking on a partner for this purpose. I can't afford to pay a salesman ( a good one anyway) so I need a different carrot.

PBH, in regard to cash flow, we are negative which is why the lines have been growing. Or are you looking for my monthly expenses vs my previously stated sales?

My break even is 65k-75k a month in sales and we're at 40k - 60k right now.

lendaddy · 11-19-2007, 02:02 PM

One more thing Motion,

I may have given the wrong impression on my experience. I have been selling for years, I've just never gone on the road. I know the two are very different, but I'm not completely green.

motion · 11-19-2007, 02:02 PM

How about taking on the right person for a reduced monthly salary, but a small percentage of the company?

lendaddy · 11-19-2007, 02:20 PM

Quote:

Originally Posted by motion

How about taking on the right person for a reduced monthly salary, but a small percentage of the company?

This is absolutely a possibility. I have a guy in mind but it would take some convincing.

motion · 12-10-2007, 06:44 PM

Any updates? How are you holding up?

lendaddy · 12-10-2007, 06:55 PM

Thanks for your concern. I'm not great but it could always be worse.

I have three potential big deals up in the air that could really save us but time is not exactly on our side. That's really the difficult part, know when to hold em..know when to fold em. How far do you go chasing the out?

It's a ballet of conflicting emotions and rationale. I can make perfectly good arguments for the path I'm on and equally powerful arguments that I'm a fool. Imagine a situation where you know you have to make a move but you feel stuck in glue. I know that sounds cheesy as hell but it's a pretty accurate description of my mental state.

Shaun @ Tru6 · 12-10-2007, 07:01 PM

not cheesy at all. that was G9Girl for a year. we always had small grand moments, but couldn't carry the momentum, but could justify continuing with great arguments. the big deals (Macy's) never came through. problem is there was always another savior on the horizon.

Lost over 6 figures doing that because I never set limits.

Set a hard limit.

lendaddy · 07:08 PM

Quote:

Originally Posted by Shaun 84 Targa

not cheesy at all. that was G9Girl for a year. we always had small grand moments, but couldn't carry the momentum, but could justify continuing with great arguments. the big deals (Macy's) never came through. problem is there was always another savior on the horizon.

Lost over 6 figures doing that because I never set limits.

Set a hard limit.

Indeed. For those that never get the privilege of going through this it's quite surreal. You reach mental "places" you never would have imagined you could live in/with. The stress gets so strong it almost fades into the background, it's weird.

Regarding limits...as I'm sure you know you reach a point where part of you feels you've potentially lost so much that there's no sense in not going all the way. I'm not saying that's always the case but the thoughts get to you.

Shaun @ Tru6 · 12-10-2007, 07:17 PM

Joel, I've been ALL the way down this road, and I mean to the hard bitter end where you are literally left with nothing but a ton of debt and a 69E in a 1,000 pieces that is your own personal version of an addiction. Surreal is the only way to describe what is impossible to translate in terms of mental places.

Set a rationale hard limit with someone outside of the situation. you really don't want to see what's at the end of the road.

Wish I could share a bottle of JW to really fill you in.

lendaddy · 12-10-2007, 07:20 PM

Thanks Shaun, I spend as much time as I can just thinking. The time that I'm here is decompression and thought.

Moneyguy1 · 12-11-2007, 12:31 PM

George Eastman, when starting his company (KODAK) could not pay good help. He promised everyone a stake in the company. Ever wonder where all the millionaires in upstate New York came from? Also...look up and see if you have a SCORE office in your area. It is comprised of retired executives who assist companies having troubles.....

MRM · 12-11-2007, 02:18 PM

Moneyguy's right. Also call your local colleges for their small business centers. Most have business studebts who take on projects like this for credit.

5axis · 12-11-2007, 06:12 PM

A little good news
http://www.pbs.org/newshour/bb/business/july-dec07/globalization_11-29.html

Hang in there! We are seeing things coming back to us at last. The weak $ and continuous eff-ups, big and small on outsourced jobs are helping.

HardDrive · 12-11-2007, 11:22 PM

Where is your website?

If you do not have a website, then please send me a PM.

lendaddy · 04:51 AM

Thanks guys, I was busy last night so I apologize for the delayed response.

I am already working with an adviser from a local college. He is a retired business owner himself and is working fotr the MIBTDC (Michigan Small Business & Technology Development Center).

In addition we have been working with two Congressmen and a Senator (two of whom met with us here at my plant on Friday). They have been pretty helpful but they don't have magic wands either.

Our website exists but it's not...how you say..."good?"

lendaddy · 12-12-2007, 04:54 AM

Quote:

Originally Posted by Wayne at Pelican Parts

After our conversation, it sounded like you were more putting out fires than planning ahead.

You can be the best driver in the world, but if your race car is broken, you're not going to win any races...

-Wayne

Ain't that the truth, man what a trap that is. Putting out fires gives instant feedback so it feels like you're being productive when in reality you're ignoring the inferno behind them. I struggle with this a lot.

JeremyD · JeremyD's Garage

Anyway you can shorten those receivables to 30 days and lengthen the payable to 60 days? that might give you a little more breathing room - and it's basically "free money".

Sorry if this has been mentioned before - I did not read the whole thread... but as motion said - your fixed costs are pretty fixed - If I were you I'd alot 3 undisturbed hours a day to focus on sales efforts. flyers, mail outs, phone calls - smiling and dialing - bid out any job you can, no matter how small - they can lead to bigger jobs....

don't get into a pissing match on price - push quality and quick turn around - your job is just to find those jobs that need those two qualities...

JeremyD · JeremyD's Garage

OK - just read through the whole thing -

And a couple more observations - #1 as a few others have mentioned - try to keep the business going as long as possible -

#2 - Try and get your father retired - and secured out.

#3 - Anyway you can change the ownership without tax obligations? The reason I say that is because if you can put the business 51% in your wife's name - then you qualify as a women owned business. If not, maybe you can get a partner on board that is a minority, woman, whatever - and now those purchasing folks have some motivation for dealing with you (especially if they have government contracts).

Then start targeting some of these buinesses that are building ethanol plants and get a piece of those.

lendaddy · 12-18-2007, 11:15 AM

Just wanted to update a little good news. I just landed a $200k annual deal! This may not sound like a lot, but we're small so one more of these and we're back in business. This project will not require any additional costs on my end and there are no materials required.

This is the first positive thing to happen here in a long time and it really hasn't sunk in yet.