When you cannot pay the rent or the financial institution needs their advance payment (or whatever catastrophe that you're facing at the moment), learn what to do next. You are the final decision making leadership. To protect the enterprise from unlawful termination suits, schedule a witness to be present with the lay off supervisor and the employee. When offering money, you must normally start at one third of the maximum that you can accept. This leads to lower growth, bad productivity and lower profits.

When you do this, you're putting financial resources at risk that you don't have to. You'll have to be creative on reducing expenditures, lowering your interest payments (again see Lessons 9 and 14), and finding ways to boost your sales number (Lesson 16). You want a definite date about when they are going to pay the invoice. You'll know that your projections and strategies are enough to restore the business if they meet these goals. While this is natural, it's not the right way to run a small company. Years from now, you will study these failureyears as the best professional experience that ever happened to you. Third, you comprehend these lay offs will economically harm your community that may moreover be struggling. You must write a weekly status report on your rebuilding progress for your workers and board. You have to break the news to your personnel and customers. Turning around your firm is the best way for your financiers to reclaim their capital and for you to repay your creditors.