It can be terrifying to experience your company running out of cash, with revenues down and creditors foaming at the mouth.
But what do you do about it? If you're like a lot of business people in this situation, you won't be able to take it.
You'll give up, often with the blessing of your trusted attorney and accountant.
Only a small fraction of new business start-ups last for five years.
Those that disappear take dreams, savings, jobs and creditors' money with them.
Your competitors are hoping that you don't know how to effectively market your products and services.
Chances are, you can take a few simple and inexpensive measures to significantly increase revenues.
Your firm could likely benefit from effective help in this area.
But to get to that point you will need to come up with a debt management strategy to limit the damage done and to bring your payment commitments into line.
This strategy involves cutting deals with creditors now and in the months to come, so that you meet the twin goals of immediately minimizing cash outflow while reducing total business liabilities over time.
This means you have to:

• Categorize your company's payables into three groups and deal with these creditors accordingly:

o "A" group - Keep current, to permit you to stay in business o "B" group - Either keep current or delay payment, according to your budget o "C" group - Delay payment, to resolve later

• Keep close to your banker, especially in today's economic environment, where many are operating on hair triggers.
  Loan officers can be your greatest allies if dealt with properly.
  You might be able to reduce monthly payments, depending on the type of loan and your specific situation.
  Do everything you can to articulate your goals, intentions and requirements in writing.
  

• Work out a deal with your landlord.
  Rent is likely to be amongst your highest monthly costs and anything you can do to reduce this outflow will go a long way to help.
  You might want to:

o negotiate rent relief, to give you a rent-free period, or o negotiate rent abatement, to make a lower monthly payment than called for in your lease, or o get out of the lease and move to cheaper quarters.

• Build bullet-proof armor around your company and its officers, to the extent possible in your particular situation.
  This can protect against any unsecured creditor who may want to file suit in the intent of getting a judgment, before you have the time and ability to work out a business debt relief settlement with them.
  

A debt management strategy can effectively stem the bleeding - now and into the future.
The challenge for you is to design and execute the plan while doing what it takes to increase revenues.
If your business is already in crisis, this is likely too much to expect.
It's far better to give the business debt relief assignment to an experienced specialist who is motivated to produce the results you need.
You and your team will then gain the peace of mind and the confidence needed to start rebuilding your business.