Toughen up

Not long ago a group wanted a keynote speaker for their event where several hundred CEO’s would attend and the subject was “How to survive in tough economic times”. The booking agency for speakers called and asked me if I would be interested in addressing them. I asked how much they paid and she replied that it was in the thirty thousand dollar range. Hmmm The first thing I would recommend in my lecture would be that if they want to survive tough economic times, don’t make their situation tougher by paying someone to speak to them for less than an hour and pay them thirty thousand dollars.

I have survived some tough times both personally and as a businessman and I do have a better than average understanding of what it takes not only to survive tough times, but to thrive. As a young businessman with woefully inadequate controls on my business, I had an enormous amount of money embezzled from me and found myself $278K overdrawn at the bank, $900K in hard debt, my inventory for my mail order distribution company had been systematically stolen and reduced to a fraction of what I needed, my financial records had been destroyed by the thieves to cover up their tracks, and I had to reduce my workforce from 65 employees to 19 in three days in order to keep the doors open. Dark times indeed and all of the advice I received from every advisor including my attorney, bankers, and CPA was to take Chapter 11 bankruptcy and call it a day.

Call me bull-headed, but I chose to reject their advice and give it the old college try and try my utmost to make a go of things. I wrote all of my creditors and informed them of what had happened. I asked them to give me extra time in paying back my debts and warned them that if they sued me they would receive pennies on the dollar, (if that), because it would force me into bankruptcy. I refused to pay penalties or interest and held firm in all negotiations especially with the banks. I maintained that I was a victim in this matter and I was not going to pay an endless stream of interest and penalties. I told them that I would pay them “something” each month and in some cases “weekly”, even if it did not approach a normal payment. I vowed to keep them informed and I did, writing a weekly update and religiously sending it out. As things improved I would pay them more and more until they were repaid in full. They did not like it, but the prospects of getting something versus nothing was the more appealing of bad choices.

It was a difficult time and virtually every phone call I received was an angry person threatening to sue me, but none of them did. In fact I repaid every penny of that money and built a cash reserve. I learned how to budget and did not spend one “penny” that I did not have to spend. I rebuilt the business to exceed its revenue, and more importantly profit position prior to the theft, with a fraction of the employees that I really needed, meaning we all had to work exceedingly hard and long hours. It was tough, but we were tougher.

My thoughts and advice to you as I watch our economy continue its melt-down are to prepare for tough times and get tough yourself. Don’t sit around worrying about what might have been, or worse “poor little old me” thoughts, and instead work hard to succeed in spite of bad news and events. Times like these offer enormous opportunity for those who have not given up. Look for your opportunities. Watch every dime that you spend and treasure your cash, you are going to need it in the years ahead. Don’t buy what you cannot afford.

Perhaps the best advice I could offer is to keep in mind that material things are not what is important in life. God promised to provide us with everything that we “need” and instructed us to look to a simple sparrow. If God takes care of the needs of a little sparrow, surely He will take care of us for whom He sent His Son to die on a cross for our behalves.

We will get through these tough times and will be better off because of it; (I attribute the embezzlement event as one of the best educational events of my career and is where I earned my PHD in budgeting). Look to your God, to your family, and to your friends for support and rest if you must, but don’t you quit.

Matt. 10:29
Are not two sparrows sold for
a copper coin? And not one of them
falls to the ground apart from your
Father’s will.
But the very hairs of your head
are all numbered.
Do not fear therefore; you are
of more value than many sparrows.