Updated: Jul 11, 2020
If Revenues are Falling while Costs Are Rising or Staying the Same, it's Time to Act.
Right now almost no one in California is doing very well. Unless you sell canned vegetables, toilet paper, groceries, medical services, masks, or prozac, I'm not sure there's a lot of people willing to risk leaving the house to buy your products. But your landlord, utilities, suppliers, and the IRS all still want to be paid on the first of the month. What is a business to do.
“If you owe the bank $100,000 and you can't pay, that's your problem. If you owe the bank $100,000,000, that's the bank's problem.”
The first thing you should do is start making decisions and taking action before things get to the crisis point. If you're drowning in red ink and things aren't getting better, don't presume it's just going to change on its own.
Think About What You Can Change
COVID has taught a lot of people that there are things they never thought they could go without that don't really matter. Myriad professional services companies have foregone business space. Workplaces have become more casual, so uniforms may no longer be necessary or expected.
There's an old saying: If you owe the bank $100,000, and you can't pay, that's your problem. If you owe the bank $100,000,000 and you can't pay, that's the bank's problem. Right now a lot of businesses are failing. This means that there are a lot of business properties going fallow and a lot of business landlords looking for tenants. There aren't a lot of people looking to open new businesses or start new leases, and there won't be for a while, so if you have the resources to relocate, you might be able to renegotiate a lease. We have helped clients renegotiate leases and have helped clients redraft leases after negotiations. We can help you
Thanks for reading.