Category Archives: Turnaround Consulting

Success Mastery: The Basic Structure For Business Success

Success Mastery Success Mastery: The Basic Structure For Business Success This Basis Structure Applies To Every Business

Clear Definition of Your Business – I use the phrase Executive Summary. Elevator Pitch is also very common. What is not taught very well is how to structure this for maximum retention by the listener and optimum value for your business. This area is supported by your business name and your domain name. Note: I do not focus on legal structure at this point unless you already have a level of experience with your business.

Why – So you have structured and are able to present your Executive Summary. Great now what is your Why for doing it? If your why is not big and bold enough you are will lose interest and focus. If you Why is because that is how you want to make money and your Why then is all about the money, your focus on what is required will wane and you will not achieve your business goals.

Results Guaranteed 300x227 Success Mastery: The Basic Structure For Business SuccessNote: Each of these points for the foundation of my Results Guaranteed Coaching Program

Clearly Defined Outcome – This is always stated in measurable terms meaning revenue and profit if you are marketing products or services. If you are a real estate investor this is defined as business income – what you deposit in the bank from your deals that you can spend. The time line for this measurement varies depending on the business. However is almost always at least a year.

Define The Organization Structure Required When Your Business Is Fully Operational – Yes this is done in the early stages of the coaching program because business owners and entrepreneurs need to have a vision of what they are building plus the “Org Board” serves as a goal for building the team of people including outside resources that will help the owner or CEO achieve the intended results. This step in terms of the scope and detail that I know teach is actually new in the last 18 months.

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Time Phased Income Goals – What this means is we take defined outcome goal which we previously said is normally defined as an annual goal and roll that back until we have agreed upon monthly targets and in many cases weekly and daily targets. We set this up on a proprietary program so you see the numbers and a graph of the numbers. This is the start of the process where you cannot fail if you follow it.

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Gold Formula 300x180 Success Mastery: The Basic Structure For Business SuccessTime Phased Action Plans – Similar in principle to time phased income goals, I am sure you understand that income is an effect, action is the cause. However not every action results in income. So I spend a lot of time with clients on prioritizing actions and measuring the effect of those actions.  We use the same program where we set targets, measure actual statistics against the targets, graph both and use what the graphs are telling us as to the adjustments the actions that need to be made.  This is the implementation of The Gold Formula tm

This is the basic infrastructure of Building Business Profits Fast   the title of my first book. My next book is taking this foundation and going deeper into Building Real Estate Investment Business Profits Fast.  Again if your are on my email list you will be receiving excerpts from my books and more.

Intellectual Understanding Does Not Mean You Will Implement 

One of my clients this morning told me the number one benefit of the coaching program was keeping them focused on what is important.  In my experience people make a lot of progress during coaching and lose momentum if they interrupt the coaching process.

For a Free Coaching Consultation Click Here  

May Your Success Exceed All Your Dreams and Desires

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Steve Pohlit, International Business
Turnaround and Real Estate Investment Coach, Real Estate Investor

Steve Pohlit
727-587-7871
Email 

 

Success Mastery – Simple Actions To Jump Start The Profit Performance of Your Business

Build Business Profits Success Mastery   Simple Actions To Jump Start The Profit Performance of Your BusinessOne of the simplest and most valuable things to do is look at your business from the perspective of your customer. If you have a retail store, shop it or hire a mystery shopper. If you have a customer service center, call them. If you develop information products that you sell on line, ask your customers 90 days later how they have benefited from the product and what else they would like to have seen included. If you have a membership program, and someone drops out, stay in touch to find out what it takes to get them back.

Recently I discontinued a membership program where I was paying a lot of money each month – much more than $100. I have not received one call or even one email asking me why. This is really amazing considering how much money it takes to get a person to sign up for the basic plan yet alone the plan I was in.

Here is another very valuable suggestion.   Follow Your Instincts! I have said this before and will be saying it in many articles in the future. Every client I have worked with knew the fundamental solutions to the issues they asked me to help them with. For a whole host of reasons they didn’t act and accepted inertia. In nearly every case the solutions were obvious and intellectually simple.

Right now list the top 3 issues that are holding you back from making breakthrough profits in your business. Then start devoting at least 80% of your time solving those three issues. Once solved, do it again and keep doing it. Simple stuff.

For Your Success!
Steve Pohlit, Managing Partner
Steve Pohlit International LLC

Ph 727-587-7871
Email 

Trump e1345082132859 Success Mastery   Simple Actions To Jump Start The Profit Performance of Your Business

Steve Pohlit, International Business
Turnaround and Real Estate Investment Coach

PS Be sure to check my Results Guaranteed Coaching program.

Tampa Florida Business and Real Estate Coaching and Consulting Firm – Guaranteed Results!

Hello and thank you for your interest in my Guaranteed Results Coaching Program. Coaching and Consulting services are offered by my firm Steve Pohlit International. Most of the work is delivered by me personally. At times certain details are completed under my direction.

Take This For A Test Drive – FREE Coaching Session Click Here

Guaranteed Results Is A Bold Statement.

Let me be even more clear. We will agree on a financial performance target in the next 3- 12 months and you will hit it. If you don’t then we keep working until you do or you say stop and I will refund your money.

For Example:

You have a business with many employees and while you are working night and day your personal income is shrinking. No Problem
You are an entrepreneur and you want to get off to a fast start – maybe (I know God forbid) you are excited about MLM No Problem
You are an international company with many complex issues. No Problem
You are a real estate investor who has been taught by all of the Gurus and you are having difficulty finding or getting a deal done. I can offer a special program for you in Tampa Bay and Chicago where we guarantee you will do a deal and make money.
You are looking to buy a business or thinking of selling one. You will be well served by talking with me. I have a lot of experience in both sides of the transaction.
Send me an example of your situation and I will confirm I can help you or not.

I Understand The Weak Promises and Guarantees In The Market

They are offered with so many conditions that there is very little chance of you receiving your money back WHEN you are not happy. I have only two conditions:

1. We jointly agree on the daily weekly targets that will absolutely be measured
2. You complete the agreed upon work.

If you do these two things, you cannot fail. To start I need information from you so I can determine if you qualify. Part of the qualification process is a complimentary coaching session. During that session you will receive 1-3 ideas and tools that will instantly mean a huge difference in results. So if we are not a good match, you will still have my most powerful tool for getting results. Please Click Here to start

The Only Thing That Matters Is Your Success

Contact Steve Pohlit
Email
Click Here To Prepare for Complimentary Coaching Session
Phone 727-587-7871

Trump Tampa Florida Business and Real Estate Coaching and Consulting Firm   Guaranteed Results!

Steve Pohlit, International Business Turnaround, Real Estate Investment and Life Coach

Why The Genius Tour Is Important for Your Success and What Cities Is The Event Being Held

We Are Teaching

What determines income – it is not what you think

The precise way to expand your business and life – you will be amazed to discover if you follow the processes you cannot fail.

Exchange In Abundance and many other principles that likely you do not know and are essential for your prosperity in your work and in your life.


What Is Exchange In Abundance?

You will learn at The Genius Tour there are four kinds of exchange. Exchange in Abundance is one of them and is the most important. Exchange In Abundance is behind all success. It simply means doing more than what is expected. For example, in business when someone buys your offer you give them more than what they paid for.

Where Are The Events and How Do We Deliver Exchange In Abundance?

First – How The Genius Tour Delivers Exchange In Abundance

1. Valuable content for two days – no pitch fest.
2. You are paid the entry fee of $99 for every person you bring. Bring one registered person and the payment to you for this person covers your cost of registration. Use this as a money maker by bringing more people.
3. You become an instant partner in the business model of Guaranteed Prosperity which is the parent for The Genius Tour. This is significant and I will explain in more detail when we meet at an upcoming event.

The Genius Tour with Meir Ezra is unlike any other event or seminar you have ever attended because it will expand your knowledge in way that you have likely never experienced.

Coming To A City Near You All Events Start At 9AM

Toronto October 11 and 12
Atlanta October 19 and 20
Phoenix October 26 and 27
Dallas November 2 and 3
San Antonio November 9 and 10
Portland November 16 and 17
Houston November 23 and 24
Las Vegas December 7 and 8
Ft. Lauderdale December 14 and 15

Meet Our Teacher, Mentor, Coach and Friend Meir Ezra

Do You Have Question – Would You Like More Information?

Contact Me

Steve Pohlit
727-587-7871
Email

Author of: Building Business Profits Fast
Meir Ezra Div4 Exec Including:
International Business Turnaround and Development Consulting
Real Estate Investment Consulting
Executive Coach

Success Mastery: Meir Ezra and Robots – Can You Handle The Truth

Without Google or a dictionary define:

responsibility

organization

strategy

I am confident that your definition is not accurate and if you are then you have training that is serving you very well. As a very experienced person in business, when faced with challenge of defining these and many other commonly used words in business I could only kinda of explain them and not really define them.

awe inspiringFinal 300x200 Success Mastery: Meir Ezra and Robots    Can You Handle The TruthWelcome to the world of learning how to grow a business, how to achieve your ideal scene. Be prepared for an amazing experience. The only way to describe one of his events is – well I cannot. I will tell you this – you will leave in better mental and physical shape then when you arrived.

Why Did I Use Robots In the Title?

We have become a society of robots. What does that mean? It means “do do do ” and not “think do expand” I have been traveling with Meir and expanding. Meir is in over 20 cities in the next 3 months or so. I will be there with him and his growing team. We will be sharing amazing success stories, lessons and more. You will experience the energy of Meir Ezra – he will teach, entertain and surprise you. He will also challenge your thinking.

Here is the link.(Click Here Now). Don’t share it!!!

Of course you could and that would be wonderful. Here is why I suggest not sharing it:

When you visit the site and register for any event (it doesn’t matter which city and it doesn’t matter if you know you cannot attend) you will receive your link. When you receive your link you are a partner. So let’s say you live in Minneapolis and have friends in Houston. Encourage the to go to the Houston event and when you do with your link you begin to receive amazing Partner benefits.

Meir teaches the principle of FSM as part of Division 6 for rapid growth. With that I will let you discover this and many other tools at an event with Meir or maybe I will share with you in a future report. For now, follow the steps in this report and let’s expand together.

Trump e1345082132859 Success Mastery: Meir Ezra and Robots    Can You Handle The Truth

Steve Pohlit, International Business
Turnaround and Real Estate Investment Coach

For Your Success
Steve

Brain Surgery Time Management

Time Management for Optimum Results

There is a complete time management and efficiency system I have been developing from the experiences I have working with George Ross (Celebrity Apprentice), Wayne Allyn Root and from my own business experience. I have used several

Steve Speaks Brain Surgery Time Management

International Business and Real Estate Investment Coach

labels for this system in coaching clients including the 80:20 Time Management System. This is an idea that developed from working with George who is a major advocate and teacher of the 80:20 rule for achieving extraordinary results.

Why Brain Surgery Time Management

On a call recently I asked the question “do you think brain surgeons leverage their time?” The discussion included the response that since brain surgery is so specialized there is no leverage. I explained that brain surgery may be the best example of optimal leverage. Nearly everything in advance of, during and following brain surgery is done by others. The brain surgeon evaluates the patient and concludes on the procedure only after a huge number of preliminary steps are taken. Then the actual procedure takes place when all the facilities, equipment and support staff are ready. When ready the surgeon uses his or her specialized skill and then turns most of the rest of the process over to support.

Critical Path

What makes the most difference? All the support before, during and after brain surgery is irrelevant without the surgeon using her or his skills and successfully operating. The surgeon is trained to work with all the support for a successful procedure. In business many people do all the steps themselves. This is why I am completely focused on identifying with clients the actions that make the most difference in achieving their business performance goals.

George Ross reminds us that 20% of what we do result in 80% of the income we earn. Wayne Allyn Root advises on a system of positive addictions with focus on actions that are directly related to goal achievement.

The scope of this topic including how to implement Brain Surgery Time Management is much bigger than what can be covered in an article. However, this presents the key foundation points and if you need help then….

Contact me now.

Steve Pohlit

International Business Development Consulting
Real Estate Investment Consulting
Executive Coach

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Steve Pohlit is a CPA,MBA and has been the CFO of several major domestic and international companies. Today Steve is an expert business consultant focused on helping companies improve their business performance including growing profits, revenues and customers. For a FREE 6 week mini course where you will receive 10 easy to implement action steps guaranteed to increase business revenue and profits by at least 30% in the next 90 days, please visit www.StevePohlit.com  All articles published by Steve unless specifically restricted may be freely published with this resource information.

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The Secret To Beating Business Profit Plans

“Steve, I am so grateful for how you have helped me understand my business and how to achieve profitable growth. “

…This comment is direct from one of my clients whose 2010 profits are on track to exceed plan by at least 50%. Exceeding plan by 50% is worth nearly $350,000. This is one very happy client and there are many more.

What is the one component that every successful client says is the reason they are achieving business profit goals?

The answer is consistently taking action on those areas of their business that make the most difference in growing business revenue and profits.

How do successful business owners and managers consistently guide their companies to outstanding profit performance?

Most have a business coach/mentor who guides them on remaining focused and holds them accountable for taking the right action.

When I look at the difference in business performance among the clients I coach it always comes down to taking directed action or not.

What does directed action mean?

Directed action is a sequential path of steps that achieves business revenue and profit goals.  It is common for business owners to actually be experienced in what to do but are not consistently implementing.  In other cases, they are taught what to do and always held accountable for taking action.

As a business consultant and executive coach with very valuable experience running companies owned by others as well as my own companies (click here for my resume) I know what works and even more importantly I know the mistakes most  make.

What is the number one mistake made by business owners and managers?

That mistake is thinking they are the only one who can do what needs to be done.  I am always working on the mindset with the people I coach of leveraging tasks that must be done and training them on effective leveraging of those tasks.  I address the mindset of the person running the company. In the case of businesses working with employees or contractors, we are consistently looking at ways to have everyone become more valuable by leveraging tasks to less costly people or technology.  Systems, meaning the way people work and the tools they use are the key to effective leveraging.

A Program That Fits Most Budgets

If you want to be successful with any business, work with an experienced business consultant/coach who will guide you to building business profits faster than you ever imagined.  I am an expert business consultant/coach. I have a program that will fit most budgets. Email me now and tell me about your business. Include your complete contact information and I will schedule a 20 minute complimentary call to determine how we can work together for the benefit of your business.

Steve Pohlit

Business Consulting, Executive Coach
Turnaround/Crisis Management
Temporary CEO, CFO, Controller Services

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About: Steve Pohlit CPA,MBA has been the CFO and COO of  major domestic and international companies.  Steve has extensive business ownership experience having purchased and started off line and on line businesses.  Steve offers his  business building experience to companies and entrepreneurs with business coaching and business consulting.  His  focus is on building business  profits and net asset value at above average rates.   All articles published by Steve unless specifically restricted may be freely published with this resource information.

BP Oil Spill Business Losses:How Claims Will Be Calculated

There are an increasing number of headlines speculating about the extent of damage and related litigation stemming from the  BP oil spill.

There are three parts to a claim for business losses.  There is the physical loss say in the case of a fire and then lost profits due to business interruption. In addition, there are punitive damage awards. This is where a business is awarded compensation over and above actual losses.   These are called punitive damages and are typically for pain and suffering. Normally in the case of a accidental fire or damage from weather (natural cause)  there would be no basis for punitive damages. The BP oil spill falls into the category of an event that likely has the basis for punitive damage awards.

Consider a seafood restaurant on a coast line that has been family owned for generations. It has a great reputation and has been consistently profitable.  Within weeks of the BP oil spill on the news sales began dropping, continued to drop  get worse. For example, say the restaurant has been doing $2.0 million in sales and earning $200,000 profit before tax. Sales and profit  growth rate has averaged 8% per year for the last five years..

Where there is physical damage and business is interrupted, there is the predicable loss of profits from business that would have continued had the business not been damaged. However, when the supply chain is interrupted because people no longer have confidence in the food or where the fish supply is greatly reduced resulting in much higher prices, that is a different story.

Assume sales drop to where it is not possible to remain in business. There are a multitude of issues. It is unlikely the restaurant can be sold as a restaurant since the market has lost confidence in the quality and availability of the product. What about alternative use for the property. Eventually there is always an alternative use. However, the business or buyer having an alternative use in mind is likely looking to acquire the property at a distressed price.

Bottom line… any outcome other than the sale of the business as a viable going concern with a predictable cash flow based on verifiable results is going to be a distressed sale.  Losses in this situation will be future earnings plus diminished value of the property plus punitive damages for pain and suffering.

What would I recommend to a client whose business is destroyed or severely damaged by he BP Oil Spill?

1. Hire the best lawyer possible with a contingency fee arrangement. The best lawyer is one who has experience with business interruption loss experience and a track record of winning awards beyond physical losses. I would research lawyers who have won similar cases. The BP oil spill is not the first one.

2. Be sure to have a business expert as part of your professional resource team. This may seem self serving. It is not. You need a business professional to work with your attorney on a practical strategy that will hold up in court. The stronger your position the more likely for a quick equitable solution outside of court.  In settlement you want a balance of business and legal advice.

I welcome and encourage all comments from attorneys, business valuation experts and those whose businesses are potentially affected by the BP oil spill.

Steve Pohlit

Business Consulting, Executive Coach
Turnaround/Crisis Management
Temporary CEO, CFO, Controller Services
International Business Resources

Social Media Services
New Digital Media, Inc.

Twitter

Facebook

Linked in

MySpace

727-587-7871

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About: Steve Pohlit is a CPA,MBA and has been the CFO of several major domestic and international companies.   He is  an expert business coach and consultant focused on building business  profits and net asset value at above average rates.   All articles published by Steve unless specifically restricted may be freely published with this resource information.

How Successful Retailers Earn Customer Loyalty

Mark Albright, staff writer for the St. Petersburg Times published an article in the Sunday paper a while back on retailers struggling to win back customers. He does an excellent job at identifying the key issues customers face when shopping in many stores. In summary, customers know what they want from their shopping experience and they don’t get what they want most of the time.

Two charts were provided in the article. One showed that 68.4% of those responding to a recent poll said knowledgeable, helpful, friendly staff was the most important criteria for a positive shopping experience. The other chart reported that 50% of the people surveyed reported retail service has gotten worse.

Shoppers have always wanted a friendly environment with knowledgeable staff. What is most alarming is how poorly retailers continue to meet the expectations of their customers. With almost 70% of the customers ranking knowledgeable, friendly staff as most important, why is it that so many retailers continue to be obsessed with having compelling price? Studies have consistently shown and Mark points this out in his article as well, that less than 10% of the shoppers name price as the most important reason they shop a store.

Let’s examine pricing and promotion a bit deeper. The paper that Mark Albright writes for has a daily circulation of about 1 million. On Sunday, like all large metropolitan areas, the paper is thick. Most of it is advertising circulars. Most have between 4 – 20 or more color glossy pages and this format is used by most of the major retail chains. Stores attempt to show items attractive to the largest number of people and offer special buys or sale pricing. The goal is to drive traffic to the stores.

Normally on a store by store basis, retailers are able to tell how effective a particular circular was by measuring customer count (customers that actually buy), average sale and items sold. Most retailers have these statistics, but there is one critical piece of information they do not have. They do not know who it was that purchased something. They do not know their physical address, they do not know their email address and do not know their customer’s phone number. There are exceptions and I will address those shortly. However, in general, large and small retailers spend huge amounts of money on print advertising to drive customers into their stores and they don’t even know who their customer is. Consequently, they are unable to thank the buyers, hear their comments and suggestions and they are not able to personally invite them back.

Even more serious: with the development of preferred buying programs, membership programs like those used by Sam’s Club and Costco and even those retailers that have captured customer information, the way that data is used is pathetic.

Here is a brief summary of the issues so far: consumers want knowledgeable and friendly sales staff and over 90% of them place importance on knowledge and friendliness over price. On the other hand, retailers spend a lot of resources developing promotions based on price to drive traffic to their stores. When the customer gets there, not just the price shopper but the loyal customers as well, the retailer is not properly staffed and the staff that is working is not properly trained and managed. I call this a mismatch in expectations and delivery. The result of that formula is a high rate of retail business failure with stores that fail being replaced by new ones that operate the same way. You know what you get when you keep doing things the same way. What is the solution? Keep reading.

When the subject of price in retailing is mentioned, Wal-Mart’s name always comes up. Here are just a couple of things I noticed about Wal-Mart recently. First they are increasing the number of more upscale items offered. Why are they doing this? It is because they understand that appealing just to the low price crowd long term is a risky business model. No retail chain founded on the low price model has ever survived long term. None. What else have I noticed? The other day I noticed a Wal-Mart banner on the front page of Yahoo.com This particular ad was what is known in the Internet Marketing circles and Direct Response Marketing circles as a lead generation ad. I followed it through and noticed interesting “bribes” to get you to register for on line information. You could even categorize the information you were interested in receiving. Wal-Mart promised to give you advance notice of their best deals for the store closest to you. Notice I said store closest to you. When you entered your information they asked for your zip code so they could match you with relevant regional promotion.

Wal-Mart is taking the lead again in building their customer data base. I don’t think they have taken this to the store level, which where it really needs to be implemented. But they are headed in the right direction.

Do you need to have Wal-Mart’s system to implement a similar program? Last September I was testing the implementation of program with a small retailer in a small market. We used incentives as a motivator to provide their contact information. This program was hugely successful in a short period of time and confirmed the value of capturing the contact information of your customers and communicating with them. That is the first step in bridging the gap between what customers want and what retailers deliver. Note: if you are a grocery store, restaurant, nightclub, shoe repair store, dry cleaner or any business that has customers, this applies to you.

If you are a local or regional chain of stores, outsourcing this customer contact program is the most cost effective approach. If you are not sure that is a true statement Email Me and I will prove it to you. National Chains should outsource this program in the test phase and then it is likely that in-house technology will be needed long term. Regardless, it is easy to build your customer list, easy to communicate with them and this communication builds loyalty and value. This communication process is the critical link that breaks down when this process is managed internally. In summary, outsource this entire program initially; bring the technology piece in house if and when that makes sense but keep the communication program outsourced. Does this sound like Direct Response Marketing 101? Yes ..well that is because it is and you know what…basic blocking and tackling work all the time.

Does all of this solve the problem of bridging the gap of what the customer wants and what the retailer delivers? Absolutely not! All of the fundamentals successful retailers are paying attention to today must continue. Having the right product in the right place at the right time is a good goal. Having staff properly trained and managed is a great goal.

But this is the planet earth folks. When all the best logistical systems and human resource development processes fail .. and they will from time to time, a strong binding relationship with your customer will overcome any isolated execution failures.

Are there any examples of anyone doing this more right than wrong? I remember in 1996 when I was in my second year of operating an Internet Service Provider company that I founded. I was focusing on industries likely to benefit a lot quickly from using the tools of the Internet. One of them was mail order. I knew there would be huge benefits to catalog retailers from using the internet. Of course when I contacted many of them and they had no idea in 1996 what I was talking about. So I let it slide instead of pursuing that idea along with a number of other billion dollar ideas I had in the early days of the commercial Internet.

Today there are numerous examples of catalog retailers doing a great job of communicating with their customer base. Now the big gains are coming from the “brick and mortar” companies who are communicating like catalog retailers. Who are they? Circuit City gets a vote. Circuit City sends me wonderful emails in addition to their weekly print advertising circulars. Wal-Mart used to do a good job now that I am on their list but not any longer. In the catalog retail business, one of the best is Fredericks of Hollywood. There are other catalog retailers that have an effective communication program in place. In fact if you order on line from any catalog company and give them your email address, I would bet you start getting information from them. Even if you don’t order, sign up for some of these lists to see what they send you.

The biggest mistake made by companies that have you in their data base, is dropping your contact information when you have not purchased for awhile. I know of one very popular retailer with a huge mail order division that sends me tons of catalogs but not one email. When asked about this I was told I no longer receive emails because I am not a current buyer. But they continue sending me expensive to print and mail catalogs. Go figure! Recently.

In summary, study the companies that are doing this well. Look at your own business. If you are not sure what I am advising you to do will work, call or email me and let’s “kick it around”.  All contact information is at the end of the article.

Sharing with all my readers the energy of peace, happiness and abundance

Steve Pohlit, Expert Business Consulting

Email Me, Steve Pohlit to schedule A No Obligation Consultation On Building Your Business Profits.Need more customers? Let’s discuss how to use cutting edge Social Media Marketing in the revenue building cycle of your business to drive your profits sky high. If  your company is not growing revenue and profits,  if your company is not cash flow positive Click Here for more information about Turnaround Consulting Services for Business In Crisis

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About: Steve Pohlit is a CPA,MBA and has been the CFO of several major domestic and international companies.  Steve is business owner and an expert business consultant, direct response and social media marketing  and social networking security expert . Steve is  focused on helping companies improve their business performance. All articles published by Steve unless specifically restricted may be freely published with this resource information.

Financial Crisis, Turnaround Consulting

An independent business owner contacted me after reading several of my articles on business turnaround consulting and business process improvement consulting. She asked if I could help her. I asked if she would write me note about her situation. The following is her message:

Steve,

I decided to get in touch with you because I am very close to running out of cash. I don’t know how I will pay on my loan payments next month because at the moment I don’t have any funds for that.

I feel like I am really close to generating positive cash flow with my business but I am still stressed about how I will pay on all accounts/loans that I am responsible for. I feel like I just need to buy myself more time.

I am doing my best to maintain my positive attitude, faith, and belief but I am scared. I’ve applied for additional credit cards but have been denied. As a result, I’ve started to search for a job, which I know is taking my focus off of where it is I want to go.

Financially, I’ve never been where I am at the moment.

If you can help, I am grateful. Even if you are unable to,  I am still grateful.

Thank you,

————————————————–

I asked her permission to publish this on my blog as I have actually been planning to write an article about what many people are experiencing for a variety of reasons. Full disclosure: I am a business turnaround and business process improvement expert. I am not a personal financial planner, personal bankruptcy lawyer, personal financial counselor. My experience in this area are very direct and from the streets. If you would like additional support for what I about to tell you, read Bill Bartman’s book “Bailout Riches”.

Notice some very important words in this lady’s description of her situation: faith, belief, scared, “I am responsible”.  So my response is written for those who have similar feelings.

About Being Scared:

This is natural particularly since this is the first time she has found herself in this situation. The key is to acknowledge that and just move outside of yourself and observe it. This takes some practice but it can be done. Realistically, we become scared of losing our life, our “stuff”, a place to live and starving. In the worst case scenarios a woman will be not homeless. Nobody will starve to death and stuff can be replaced when the economic situation turns around. In my belief system I have learned how not to fear death. Once you no longer fear death then there is really nothing else to fear. On that topic “Home With God” by Neale Donald Walsch is a great read.

Now I know writing about fear and being scared does not make it go away. You can release these emotions. In fact you must release these emotions or you will have difficulty moving forward which is really what your intending to do. Now for the art of the practical of why you can expect:

I am going to assume she is fairly current on her payments and realizes that will change next month. My advice is to stay focused on immediate needs only while continuing to solidify cash flow from her business. Immediate needs are food, utilities and those service needed for her business. These generally include Internet service and phone service. TV service is not an essential. Car insurance is. The key is to evaluate true essential spending.

For now paying credit card debt and mortgage payments are also not essential. If you are a renter, you may have less time in your place than if you have a mortgage.

Going Forward

This lady mentioned feeling like her business is close to cash flowing. I recommend anyone who has a business ask someone else with business experience for a realistic evaluation of that feeling.  This is the number one item I work on in a business turnaround after addressing immediate cash management issues. With the confidence of how a liquidity crisis turns around you can navigate any obstacles. Now if you don’t have that confidence then you should begin pursuing plan B. She mentions looking for a job. That may not be her first choice but it may be a realistic stepping stone until she can turn her business cash flow positive. That is for her to decide.

What To Expect From Credit Card Companies and Banks

The reality is you will get a lot of phone calls. Most of these calls will be made by a computer. So it is a great idea to have a caller id phone that you can put on silence or vibrate.  You don’t want to answer a call unless you know the caller and you want to talk to them. The natural inclination is to want to talk to the representative on the phone. I don’t recommend wasting your time doing that until you can tell them you have restored your ability to pay.

Credit card companies will threaten to file suit. They won’t. Read Bartman’s book. You can become delinquent more than 90 days if it takes that long to restore cash flow. Close to the 90 day mark they will be willing to cut all kinds of deals with you. If you take one of them know that they will not reactivate your card. I know the credit card companies will accept settlement at 50% of the amount due and take that over 3-5 monthly payments. They do not want you to know that. And as soon as I write that I am sure someone will say there are even better deals than that.

I am not advocating not paying what you owe. However, the credit card companies have no problems charging very high default rates and late fees. Your responsibility is to position yourself to go forward.

Get used to the phone ringing and don’t take it personal. First a computer is dialing and then at some point when you decide to talk with someone because you have a proposed solution then recognize they are not your enemy or your friend. They are simply doing their job.

You can expect the calls to start at 8AM and end at 9PM Monday through Saturday and noon until about 8PM on Sunday.

Mortgage or Rent

Because mortgages go through a foreclosure process it can take quite some time from start to finish. Rent on the other hand is a bit more dicey depending on the market you live in. The meltdown leading to the high foreclosure rate has driven up demand for rental units. So you could be facing a situation of eviction 60 days or so past the due date.

Generally if you are able to pay a portion of what is due that will buy some time. Mortgages move from the normal mortgage service department to a foreclosure processing department. Expect notice of intent to foreclose and calls. Don’t panic you have time. But keep moving on you go forward plan. Foreclosures and evictions do happen.

Brief Summary

What I have tried to do is paint the picture of what you can expect. There are variations of course and timing can vary depending on the credit card company and bank. Ultimately you have a lot of room to negotiate just about everything related to debt. Utilities no since they will just cut you off. But debt yes. However, in order to negotiate you must have something to negotiate with. You ultimately have to have a source of cash flow to negotiate.

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Sharing with all my readers the energy of peace, happiness and abundance

Steve Pohlit, Expert Business Consulting

IR Consulting, Inc.

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