I was talking to some friends of mine this week. We share stories about our respective businesses. Sometimes we laugh until we’re ready to cry. Other times, we laugh because it’s better than crying
This week they told me about a problem. It’s such a great problem I want to share it with you. My friends have so much potential business coming at them, they don’t know how to grab hold of it all!
My friends are smart, smart people. They saw the writing on the wall a couple of years ago, and liquidated their real estate holdings. Then they sat on a mountain of cash, looking for a good business opportunity that suited their skills and made them excited about getting up in the morning. And, when they thought they’d found it, they worked hard, doing the due diligence to make sure it was a good business opportunity before jumping in, making sure they had the cash reserves in place to get through the lean times … and prepared their plan for future growth.
But what they didn’t count on were some carefully hidden problems that their due diligence didn’t turn up. The problems are fixable – many of them are already fixed – but it was an expensive time, and their cash reserves are dipping lower and lower. The turnaround is coming, but it will still be a couple of months before things ease up.
Credit could be one answer, however with our current economic situation new credit isn’t that easy to come by. Heck, even existing credit is under attack. We’ve been talking on the Forum for the past few weeks about credit card providers reducing limits without warning, effectively hamstringing business owners and individuals alike who look at their high-limit cards as an alternative source of financing.
All of this is happening at the same time new opportunities are flooding into their business. I think what’s making my friends truly nutty is that with their diminished cash reserves they aren’t able to act on many of these new opportunities. They just can’t expand fast enough to cope with the volume of new business trying to come their way.
Personally, I think that’s a great problem to have. It says to me that not all businesses are down and out. The smart, adaptable businesses are finding a way to profit, even in times when others all around are failing. And I find it interesting that my friends aren’t the only business owners I know in this situation. That’s pretty neat, too. I feel privileged to be in such good company!