If you own or operate a small to medium-sized business, you realize that you have many different constituents you must keep happy to be successful. But how do you deal with those various groups when the economy or your business suffers?
We are often surprised when our clients don’t fully realize the existence or importance of various groups to the success of their business. Of course, you have to keep the customers happy. And the tax authorities. And your employees, trade vendors, regulators, insurers, etc. While this can be challenging enough in good times, when there’s not enough money to keep everyone happy, what can you do?
This is an area where negotiation skills, backed up with knowledge about all the options, come into play. What will happen if your company has to file bankruptcy or shut its doors? Which constituents will be harmed the most, and what deals might be struck to have everyone share some of the financial pain instead of having the business fail with one or two groups bearing the brunt of the harm?
Our team can evaluate not only what options are available to the business, but how those options might play out for the various constituents. Then we use the results of that analysis to persuade those groups why sharing the financial load can actually be in their best interest. This often involves an analysis of what would likely happen if the business filed for bankruptcy, and has proven to be an effective way to avoid taking that path for many of our clients.