GREAT 16 IDEA: Know When to Reach Out for Help

Every business hits a rocky patch once in a while; it's nothing to be ashamed of. But if you are worried about your business, please don't be afraid to reach out for help. If you don't set your ego aside, you could jeopardize everything—your business, your family, and your reputation.

This checklist will help you take the pulse of your business:

1. Are vendors or suppliers calling you and demanding to be paid immediately? YES NO
2. Has your banker reduced your credit line or demanded full payment of a loan? YES NO
3. Are you having trouble meeting your payroll? YES NO
4. Are you dipping into personal savings to pay your bills? YES NO
5. Are customer complaints increasing? YES NO
6. Do you have trouble sleeping and feel out of control? YES NO

If you checked more than one “yes,” you need help ASAP. Ask whether your current advisers can help you sort things out. Your accountant may be able to suggest ways to boost your cash flow. Your attorney can send collection letters, which might help you get paid faster. You need to eliminate nonessential expenses, but consider hiring a freelance marketing consultant to create a low-cost, short-term promotion aimed at bringing in new sales.

If you feel your business is in serious jeopardy, consider hiring a professional turnaround consultant. These highly skilled and experienced experts step into your shoes and take charge. They work quickly to negotiate deals with creditors and vendors to keep them at bay. They deal with your banker, your suppliers, and your landlord, convincing them to give you more time to sort things out.

Bringing in an outsider to rescue your company is a dramatic measure, but it tells the world that you care enough about your business to step aside—at least temporarily. Turnaround consultants are not cheap. A good one may cost thousands of dollars that you probably don't have. Often, your bank will force you to bring in professional help.

One turnaround consultant I know told me he found $60,000 worth of checks tucked inside the desk drawer of a panicked controller. The moral of that story is: when your business is spinning out of control, it's tough to think clearly.

One caution: If you hire a turnaround consultant, you will have to relinquish day-to-day control. You can't disappear, though. You have to be available to answer questions and provide information.

For less severe problems, schedule some free or low-cost counseling at a Small Business Development Center (SBDC). There are about 1,000 centers around the country, jointly funded by the U.S. Small Business Administration and private organizations, usually colleges or universities. You can find the closest SBDC by visiting www.sba.gov.

And don't forget the free help offered by the Service Corps of Retired Executives (SCORE). SCORE has thousands of experienced businesspeople available to help you sort out any problems in person or online. Their services are free and their workshops affordable. Find a counselor who knows your industry at www.score.org.

Ignoring your problems is a sure way to kill your business. Send up a flare and save your company before it's too late. (Check the resource section at the end of the book for more ways to get help.)