All business operations involve some degree of risk...and sometimes that risk turns on you and your company faces serious financial problems. It happens. Many owners, officers, and managers often overreact, act in haste, or make one of these 5 major mistakes because they: Refuse to radically reduce overhead. (Over-paid staff, unprofitable “ventures”...get rid of them now.) Fail to understand and act upon financial reporting. (Control cash-on-hand, take care of creditors always, know and understand your P&L and balance sheets.) Give creditors additional collateral in company’s property or Accounts Receivable. (Unwittingly making your creditors your partner can hamstring your ability to effectively deal with any future lienholder.) Lie to creditors. (If you opt for bankruptcy, lack of transparency can haunt you in front of a judge.) Refuse to open your eyes and deal with reality. (If the company is hurting, face the facts, make drastic changes, and get professional help.) You may own and operate a business successfully in “good times”, but that doesn’t mean you actually have the skillset to navigate through stormy weather when it comes. It takes experience, training, and genuine knowledge of your options to make the absolute right choices in times of trouble. If you spend more time juggling creditors, going over “the books”, and fighting to keep customers than you do in actually operating and growing your business, it’s time to get professional help.