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…
Despite best efforts to communicate direction and hire well, many organizations struggle to achieve their goals. Often, the problem is one of internal bureaucracy, which prevents employees from completing tasks effectively. An “enabled organization” empowers individuals by ensuring they clearly understand their objectives, have the time and resources to achieve them, and the authority to make decisions. This month, I explain the five necessary characteristics of an empowered organization. Read more…