Former Secretary of State, George Schultz, summed up an essential element of business success when he said, “Trust is the coin of the realm.” It’s a critical aspect of human life in general and business in particular. But it’s a lot easier — and quicker — to lose than it is to gain. This month, I explain why trust is so important and share suggestions for ensuring you continue to maintain it through your words and actions. Read more…
There are many ways to annoy and worry your lender. And while I am not suggesting you do whatever is necessary to keep your lenders happy, you would be well advised to avoid doing things that will upset the economics of the loan or cause lenders concern. With that in mind, today’s newsletter shares specific examples of what not to do. Read more…
Constraints, whether in the form of time, people, money, or something else, are a fundamental aspect of business — no organization has unlimited resources. In practice, resource constraints pose three business challenges. Today’s newsletter explains. Read more…
“Customer concentration” — a label that describes companies whose sales are concentrated in too few accounts — is problematic, both in terms of the cost of capital and, ultimately, company value. The best fix for this scenario is to avoid it entirely. Today’s newsletter offers suggestions for what to do when that is not an option. Read more…
The essence of risk is that we don’t know today, with certainty, the effect our decisions will have in the future. We try and see if it works. But while businesses must take risks to survive, judgement is required to ensure those risks are undertaken wisely. Read more…
No business owner or principal takes out a loan with the expectation of not paying it back… and no lender makes a loan with that belief. Sometimes, however, circumstances (self-inflicted or otherwise) take over. Today’s newsletter looks at what to do if you are in danger of default. Read more…