Can’t pay your bills on time?

Can’t pay your bills on time? Have you looked at your profitability recently?

I spoke with someone this week that was looking to sell me their business because they were at a crossroads and they were in a dark place.

As is common with small family-run businesses, expenses kept creeping up, the number of jobs was about the same, but for some reason, they were getting behind on their payments. Vendors, IRS, you name it things were getting delayed because they just didn’t have enough money in the bank.

That’s why they contacted me. They wanted a short-term loan.

Many times adding more capital to the business is not the correct long-term solution.

We are living in a time where there is a lot of stealth inflation that gets overlooked. We may be hearing the only thing that matters is the CPI numbers but for a recent example, I noticed the box size of my favorite cereal was getting smaller while the price stayed the same.

That’s inflation and it’s a bigger problem than most currently realize. This is the classic frog boiling metaphor and it happens to both suppliers and consumers.

So if you are running into problems paying your bills and your revenue hasn’t taken a significant hit, the next thing I would check is your profit margins. Are they shrinking?

Sometimes raising your prices a few percent is the trick to get you back in the black.

Sometimes when you’re in a pickle, the hardest thing to do is ask for help. If you have a specific question about your business let me know below or PM me, and I would love to see how I can help you.