Never promise something if you may not deliver it

Much as you want a crisis to be over, please don't promise what you cannot deliver.

2017... we read all about new begins, turning over a new leaf, a plethora of advice, motivational goal setting, and more. Targets revised, companies supposedly taking stock of expansion, downsizing, restructuring, innovation and the like. So, where do you figure in this?
Is the business you are involved in facing hurdles? Have you been effected by the downturn? Are your services, products no longer in demand? Are you still relevant in this market and can you sustain the slowdown because this is a cycle as we all know and only a matter of time or in the case of a business the timing.
The question to you, the business owner, does it make good business sense to go, stay or leave, restructure, trim down, cash in or cash out?
How long can you sustain your business without taking on more liability and financial strain? Equally important are the legal implications in not being able to honour commitments with counterparties or staff.
How much has your credibility suffered in the market - not meeting financial commitments overheads, not delivery products or services on time? How is this effecting your personal finances (assuming you have separated the company money from your personal money)? Are you behind on rent, credit cards, car/personal loan payments?
I came across some businesses that continued to struggle to survive till they were forced to take dramatic steps. Two stand out as they made some painful decisions and are happier for that both had different issues and yet were similar in many ways.
Company 1: An executive search company riding on the momentum of excellent service and reputable clients.
Induction of managers, turnover of staff led to downturn in morale, putting extra trust in some employees led to betrayals, relationships took precedence over competence. A combination of these led to a lower level of service which resulted in lower inflow of cash and a struggle to meet commitments which led to retrenchments. The owner who has a high sense of moral commitment chugged along to meet the financial commitments to the company. This led to personal savings used to make up the shortfall.
All other funding was closed off. Banks would not lend, even a personal loan. Owner then lost heart and started searching for other avenues of business but, however, continued to rent and maintain large office space with no income in the hope that new business venture will take off soon. Today, 15 years later, no personal savings, maxed out credit cards, downscaled personal/family lifestyle, intermittent income, limping back to normalcy, business still eating up all earnings.
Company 2: High-level professional corporate services. Expensive office based on location and accessibility - need to show HNI status, large floor space expansive offices and boardroom, latest electronic and communication devices and connectivity, high-quality stationery, appearance of being affluent, visitors served gourmet teas/coffees/snacks top of the line cutlery, spent over Dh750,000 on finishing and fittings from cash (received from a successfully-closed deal) in addition to rent establishment of company fees, etc. Consultation and other fees high. Low profile due to the confidential nature of business. Depending on word of mouth and HNI referrals. No business plan. No marketing plan. No strategy at all just depending on personal and professional credibility.
Result: Large amounts earned but vanished to pay massive overheads. Savings used to sustain office and family commitments. Owner resisted advice to downsize matter of prestige, ego, emotional attachment and the opinions of others.
As business owner, be honest with yourself: instead of facing the present situation, are you choosing to live in the past because in the past, happy memories are there to comfort you? You live in a delusion and you try to fool yourself into thinking that everything will work out in the end, even though every fibre in your being knows that it's not.
Change is natural; learn to accept it and improvise, adapt and overcome challenges with regard to your business.
Much as you want a crisis to be over, please don't promise what you cannot deliver. Family, business, your credibility and self-respect is at stake, so be careful how you proceed.
Sandi Saksena is a Dubai-based financial counsellor. Views expressed are her own and do not reflect the newspaper's policy.