crisis

Tag: crisis

Key Elements When Seeking Financing

This past week, one of my clients met with a banker to develop a new banking relationship. He hands the banker the company’s financial statements, expecting the banker to look at the income statement. Instead, the banker flips to the back of the financial statements to look over the balance sheet. As the coach, I

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Business Advisory System

You may be familiar with the advisory system (pictured at right) formerly used by the Department of Homeland Security to disseminate information regarding the risk of terrorist acts.  Despite its being replaced by a new system in 2011, most of us remember the color-coded warning system that came in the wake of September 11. But,

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How long can a company lose money without running out of cash?

Only when the tide goes out do you discover who’s been swimming naked. – Warren Buffet Is the Houston economy’s metaphorical “tide” going out?  It’s hard to say, but some businesses are definitely feeling a bit “naked” these days.  They may not even realize the peril they’re in because they still have positive cash flow despite the fact they’re losing money.  This begs

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Black Swan Events

You may have heard the term “Black Swan Event“, particularly recently.  But what exactly is a black swan event and what can, and should, we learn from them? The notion of black swan events was first set forth by Nassim Nicholas Taleb. Taleb, a finance professor and former Wall Street trader, wrote about this concept

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5 Stages of Business Grief

Do companies experience stages of business grief? No college psychology class would be complete without a discussion of the 5 stages of grief outlined by Elisabeth Kubler-Ross in her 1969 book On Death and Dying. The Stages of Business Grief For those of you who skipped (or slept through) the lecture, the 5 stages are:

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The 5 Stages of Business Grief

In her 1969 book On Death and Dying, Elisabeth Kubler-Ross outlines the five stages of grief individuals experience when faced with catastrophic personal loss. The five stages are as follows: Denial Anger Bargaining Depression Acceptance The 5 Stages of Business Grief In one form or another, businesses too experience these five stages when faced with

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If They Will Buy, Then I Will Sell!

If they will buy, then I will sell! Or stated another way, if I can sell it then buyer beware! That seems to have been the motto for the sub prime mortgage industry. Over the past five years a looming crisis has been in the making. Mortgage brokers would originate the loan then immediately pass

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