Why I Love Work

“I need to work. It’s the one time my thoughts will cooperate with me.”

― Dan Groat, Monarchs and Mendicants

As a teenager whenever I misbehaved, which was quite often, I would get hands on my throat, or a belt or metal ruler across my butt and legs from my dad.  There were times I left the scene of a lashing with swollen, bloody legs.  And there were times when I thought my dad wanted to kill me. 

To escape the turmoil of life in a dysfunctional home, I fell in love with work.

I worked throughout my childhood from age 12 and up, even though it was still illegal to hire kids under 16 at the time in Texas. 

I worked at baseball concession stands as a cook and cashier, McDonalds, Subway, the grocery store as a shelf stocker, and at Lexon Medical as a file clerk. 

I routinely received employee of the month awards, and felt that I was a good, honest, hard worker, always looking for opportunities to make others’ jobs easier by going the extra mile.  

Work was and still is a form of therapy for me.

Though work may not be an economic necessity, work, and the inner vitality and value that comes with it, is and always has been a spiritual necessity. 

I love work.  

That said, I felt school work was mostly trite and trivial.  I graduated high school in the bottom 3% of my class with the equivalent of a D-average. I just didn’t care. I spent most of my days in class daydreaming of being elsewhere, as I was for the majority of my school experiences, a small boy who seemed to attract bullies and fights for whatever reason. 

Some of the bullies I still remember by name would come up to me and punch me in the face for no reason at all, other than to prove that I wouldn’t fight back.

Others would spit on me, or pick me up and run me into a wall or try to shove me into a locker, or trip me or push me to the ground.  

I did occasionally deserve the licking I got, as I had a quick wit and a sharp tongue.  But my insults against others were typically minimal, as they led to fights I’d almost always lose on account of my small size. 

That was, until I was introduced to boxing.

And then my love for work was channeled into a whole new path.

But that's a story for another day.

Increasing Power Thru Family Ties

"The family is a link to our past, and a bridge to our future.” – Alex Haley

I was born in Provo, Utah in December of 1976.  

My given name was Kent Burton, named after my father, Kent.

My parents were both young, newly married, and attending Brigham Young University in Provo Utah.  They were far from the home they grew up in, and from parents and family, most of whom still lived in Louisiana.

They never completed their college education, and I learned later in life that both struggled with severe depression.  Both contemplated suicide when I was a toddler, and my dad confessed in later years to nearly pulling it off with a loaded gun to his head up in the mountains.  

I’ll admit that I grew up in fear of my dad, and our relationship was often strained, if not explosive.  He believed in being firm, since he felt his dad, McKay Burton, was too soft. 

And although they were extremely devout in their LDS faith, my grandparents, McKay and Rene Burton and their 7 children and grandchildren have on the whole struggled with great tragedies in life, as their children or grandchildren have had numerous incidents of divorce, abuse, poverty, and crime.  My dad and us children were one of the exceptions, comparatively, in many respects, or so it may seem.. 

McKay and Rene Burton’s ancestors both have deep roots that trace back to the early members of the Church, including direct ties to Anson Call and Joseph Fielding.  Many of these early LDS church pioneers were beaten, tortured, raped and in some instances killed; almost all of the early pioneers had their property stolen from them, on account of mob violence and persecution against the early Church.  

My mom’s parents, Moses, who was Lebanese, and Barbara who was mostly Scottish, were much more firm and disciplined with their children.  Each of their 6 children have had relative success and happiness in their lives.

Many of Moses’ ancestors, the Attayas and the Salibees, fled from Lebanon due to Muslim persecution and hostility against them due to their Christian faith. 

McKay Burton

May 21, 1924 ~ May 24, 2021 (age 97)

Moses Attaya

NOVEMBER 7, 1922 – JUNE 4, 2019 (age 96)

Both of my grandfathers were named after prophets. McKay being named after latter-day prophet David O. McKay, a close friend of the family when he was young, and Moses being named after the ancient prophet who helped deliver Israel from slavery in Egypt.

They both fought in World War II as pilots and suffered through the great depression in their youth. Both were very strong in their Christian faith, and believed in and fought for the freedoms it would seem we Americans take for granted today. I believe their generation was and is the greatest generation our country has ever seen.

On both sides of my family, my LDS-Christian father’s side, and my Methodist-Christian mother’s side, fleeing cruel and unfair opposition (even opposition sponsored by the government) is in our roots.

And so, my opinion of the government and its overbearing role in people’s lives - especially when imposing itself unfairly upon individual rights, or freedoms of worship or speech or commerce, isn’t very favorable. 

For many more reasons which I’ll elaborate on in more detail later on, besides just my own upbringing and family history, I’m a Christian and a conservative libertarian.

This conservative libertarianism value system for me is defined as one who believes in the advocacy of economic and legal principles such as fiscal discipline, respect for contracts, defense of private property and free markets; fewer laws banning minor crimes, and the traditional conservative stress on self-help and freedom of choice under a laissez-faire and economically liberal capitalist society with social tenets such as the importance of religion and the value of religious morality through a framework of limited, constitutional, representative government.

Always remember that there is great strength in knowing our ancestors and great power in honoring the legacy of our forefathers.

Keep Fighting

"Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no hope at all." - Dale Carnegie

I’ve been beaten, broke, and bankrupt.

As a teenager, I ran away from home and for a while I lived out of my car, and ate out of trash cans.

I was raised in fear, living in an abusive home with a dad that would beat, choke and threaten me.

I’ve been diagnosed as manic with severe depression, and told by the professionals that I would be on lithium and other hard-core medication’s for the rest of my life.

I dropped out of high school for a year before graduating in the bottom 3% of my class with mostly D’s.

I’ve lost a best friend to suicide.

I dated 823 girls over a near 10-year period in an attempt to find the one I was to marry and raise a family with, having my heart broken dozens of times in the process. 

 

I’ve been down to my last $3.87 just days before Christmas with a wife and a baby girl and no presents to give under the tree.

I’ve lost millions of dollars in bad investments involving frauds and crooks.

And I’ve made it back again.

Fast forward to today. 

I graduated from Brigham Young University with a degree in Business and Management Information Systems shortly after completing a 2-year mission sharing my testimony of  the gospel to the good people in New Jersey.

I have a supportive and loving wife and four amazing children, ages 7-12.

Although I still have hard days and feel at times weighed down, I’m not on any antidepressants. 

I’ve also obtained some measure of wealth.

My point in sharing this is that it doesn’t matter where you come from, or what you’ve done, or how many times you’ve failed.  

There’s always hope.

The sun really does come out tomorrow if we move forward in faith.

Keep Fighting.

Corruption, Abuse of Power, and More Fake News and Defamation from a Government Agency

 In 2019, my wife and I were arrested in front of our four children, without a warrant, on 23 fabricated, trumped-up felony charges, that were all dismissed as being without any probable cause.

The Court examined all of the evidence against us, and ruled that we had committed no crime whatsoever.  

The judge actually reprimanded the prosecutor for bringing such a "ridiculous" case to her courtroom, and she further stated that this was the "worst" offence by a government agency she'd seen "in all [her] years as a judge", as she put it.

There was no probable cause of our arrest, and we were properly released.

During my time in jail, I asked the officers why they had arrested us.  

"Who had we ever wronged?" I asked.

"You should have settled with [defendant]" the officer told me.  

The reality is that we had settled with the defendant, but had to sue them again for their not abiding by the terms of our settlement agreement.

The alleged "victims" cited by the officers of the law were none other than defendants in several civil lawsuits.  

In each of these lawsuits, we were the Plaintiffs, suing these people for bad conduct and damages they had caused us.  

Not the other way around.

But our adversaries were not having much success with defending our claims against them in the civil courts. 

So they appealed to several law enforcement agencies, including the Mesa and Chandler police as well as the Attorney General.  They even tried to get my Real Estate Brokers license revoked by filing a complaint against my license.  

But each of these government agencies correctly concluded and told our adversaries that the matter was/is a civil matter, to be dealt with in the civil courts.

But then, one agency known as the Department of Public Safety ("DPS) with personal ties to one of the defendants we were suing was willing to seek to turn our civil dispute into a criminal case against my wife and me.

Six weeks after the wrongful arrest my wife and I endured, and after the Court found and ruled that there was no probable cause for any of the alleged crimes we were accused of by the prosecutor and the DPS, the DPS decided to "get back" at us by writing several completely untrue statements about my wife and me on their government press-release website. 

While it's true that we were wrongfully arrested for the charges DPS accused us of, they fail to accurately report that there was no warrant for the arrest, and that all of the charges were thrown out by the Court (see below):

In spite of what has been inaccurately reported by our adversaries and DPS - and by extension the press and other media outlets that picked up on the inaccurate story - we are honest and we do what we agreed to do in each of our contracts with which we are bound by. 

There is absolutely no legitimate finding of fact, or any basis of truth whatsoever for any of the things this corrupt DPS has accused us of. 

The Arizona DPS is an agency with a very long list of internal corruption and internal arrests due to officer misconduct. 

In fact, during the time of our wrongful arrest, the DPS website reported more internal arrests against its own corrupt agents than they even had against any external/public wrongdoers, suggesting a very serious and systemic corruption within the DPS.

(A small sampling of the DPS's long list of corruption and criminal acts are here - just 5 examples 1, 2, 3, 4, 5.)

Although Colonel Frank Milstead of DPS has stated that “Every employee with the Department is held to the highest standards and levels of public trust. This department will not accept any employee’s breach of that trust and will take swift action to ensure those employees are dealt with appropriately,” that doesn't appear to be the case with the DPS agent assigned to investigate our case who has lied several times under oath and has sought to destroy our reputation by posting the knowingly false statements about us online.

Although we may rub people the wrong way with our personalities or the conservative and religious views we hold to, or the fact that we occasionally have to sue bad businesses for their misconduct or breaches against us, we have always sought to be honest and fair in all of our dealings with our fellowmen. 

We hope and pray that in time DPS will do what their own attorney advised them to do: take down the knowingly-inaccurate post.  

We also hope for relief from the Courts as the wrongs we've suffered by having our reputation damaged by the lies spewed by an overzealous DPS officer has been emotionally and financially devastating to our family.

Advise to an Introverted Entrepreneur Struggling with the Fear of Leading People

Advise given to a young entrepreneur named Jamal, who reached out to me yesterday, seeking advise from me struggling with recruiting and leading a team due to fear and feelings of being an introvert and not qualified.

Jamal,

Happy to help!

Have you taken the Meyer Briggs test by chance? I'm sometimes an ENTJ (extrovert) and other times I've taken it, an INTJ (introvert). So in a sense, I know how you feel...sometimes.

I would suggest 3 things:

1) join another nonprofit (other than the one you're trying to build currently) and volunteer to lead a committee - this will force you out of your comfort zone.

2) Spend 15-30 mins per day, first thing in the morning, visualizing the process of enthusiastically enjoying interacting with, and leading and recruiting people. Do this for 30-45 days (or however long it takes) consistently, and you should have no inner struggles.

3) In your heart, be willing to do EVERY job required in your company, but seek to hire skilled professionals to do the activities you either hate the most, or that you're not good at.

Hope this helps!

6 Common Mistakes Business Owners Make When Trying to Sell Their Companies

You want to sell your company.  You're ready to retire, or move on to the next venture.  How do you prepare your company for sale?  Six common mistakes business owners make when trying to sell their companies are: 

1. Not Knowing Your Industry's Standards - You don't want to find out after you've decided to sell that your company's working capital ratios, customer diversity, or average aging accounts receivables, are below industry standards.  Better to know your the typical ratios and discover your weaknesses in advance, so you can reverse these into neutrals or strengths.

2. Holding Your Company's Assets in Less-Effective Legal Structures - I've met many owners who've made the mistake of holding their real estate in and through their Corporation.  Others have made the mistake of owning their business in and through a C-corp when an S-corp (or visa-versa) would have served them better from either a tax-strategy standpoint, or in courting the ideal buyer upon exiting.  

3. Improper Accounting Practices (Small & Easy Fixes) - Improper accounting practices are the number-one deal-killer.  A common and sometimes minor issue is improperly accounting for certain expenses.  For example, giving customers rebates upon delivery and then mistakenly accounting for the difference between the original sales price and the actual deliver price as a bad-debt write off.  Doing so would make any novice buyer mistakenly assume the company has too much bad debt as a percentage of sales.  

4. Improper Accounting Practices (Big & Nasty Problems) -   Some accounting practices like those above are easy to fix.  Others are deal-killers for almost any buyer.  For example, it was recently discovered during due diligence that one of the businesses we had an offer on had unreported income to the I.R.S. of close to $2,000,000 per year for the past several years.  Unlike tax avoidance using the maximum deductions allowable, some owners practice tax evasion by not reporting the income they've earned.  The former if prudently applied will make you wealthy.  The latter will almost certainly cost you more than you ever thought you saved and will likely put you in jail.   

5. Unreported Off-Balance-Sheet Liabilities - Not all liabilities or potential liabilities show up on the balance sheet.  For example, as a buyer I've found during due diligence that some companies have over-billed on government contracts.  In another case a seller was liable for damages connected to a breached contract that occurred some time ago, but hadn't yet converted to formal litigation.  In this case the statute of limitations for the breach of contract is 6 years, and so the off-balance sheet risk is a liability that must be factored in until the 6 years has run its course.

6. Waiting for Mr. Right - The perfect buyer or the perfect price and terms, are like the perfect spouse: they're a myth.  One owner I know has been wanting to sell and retire for many years, but is still "married" to a price offered to him  years ago, from a prospective buyer who has long-since lost interest and recently passed away.  Since then, the business continues to deteriorate in value because the owner isn't emotionally committed.  He wants to sell but is unwilling to settle for a fair price based upon today's valuation.  When your heart is not in your business, time is your enemy.  Waiting for the perfect buyer, or waiting for a better offer when you have a fair and reasonable offer on the table, is a mistake that has cost many businesses their entire nest egg.

Work On the Business, More than You Work In the Business

In his book, E-Myth, author Michael Gerber warns that most entrepreneurs get caught up in working in the business, rather than working on the business. 

There’s nothing wrong with working the 40-80 hours per week – so long as you’re working on building marketing channels, hiring and developing and mentoring your team, innovating and coming up with new products or services, or seeking additional working capital to grow.  All of these activities qualify as working on your business. 

But the sad reality is that most business owners work in their businesses and become a cog in the wheel, basically creating their own self-made prison. 

Hopefully you became a business owner because you valued freedom.  If you’re the company’s top salesperson, or the only one capable of fixing this or that, then in those moments you’re no longer an entrepreneur/business owner working on the business as an independent object.  You’ve become a technician or a manager working in the business. 

As you prepare to sell your business, you’ll want to be sure that you’re building the business, working on the business, and not just in it.  Sure there will be times when you need to roll up your sleeves, set an example, and scrub the toilets.  But the systems and the people working within those systems, need to be built and developed by you. 

Entrepreneurs: The Greatest Force for Good in the World

 "...people throw rocks at things that shine..."  -- Taylor Swift


Entrepreneurs are the greatest force for good in the world. 

Not the well-meaning politicians. 

Not the scientists or the artists. 

Nor the educators, athletes or celebrities.
 
And sure as all hell not the blood-sucking lawyers.

By definition, an entrepreneur is one who identifies unmet needs in the market, and then finds a way - typically against the odds of habit, naysayers and his own empty pockets - to forge ahead anyway to fulfill those needs. 

Being an entrepreneur is therefore the most selfless and self-sacrificing voyage one could endeavour upon. 

The stigma in society is just the opposite: namely that greed drives entrepreneurs. 

Entrepreneurs are therefore the target of much ridicule and protest by the masses of mediocre, day-dreaming, lottery-playing socialists.

Thank goodness for the few establishments that still embrace the mantra and mission of the entrepreneur.  Thank goodness for the few who hold up the entrepreneur as one worth emulating and learning from, rather than targeting him for his follies and missteps. 

It's an unfortunate truth that being in the limelight of success after coming through the hard-fought, lonely, less-traveled road of the entrepreneur makes one a more attractive target for attackers and critics.

Let us celebrate the spirit and the role of the entrepreneur.

My Favorite Books from 2013's Readings

My recommended reading list from my 2013 reads:



The Fountainhead, by Ayn Rand

Fiction.  This book is woven with Rand's philosophy that the human spirit and the power of the one - the individual - eventually triumphs over the jealous masses and faceless institutions.  Written half a century ago, it's still a timeless classic with a message that shows that the independent mind - the one who's truly made up his mind and set his course, cannot be deterred in spite of the mindless masses of jealous souls who look up with awe and greed.  The book's message is more relevant now than ever. 

The Slight Edge, by Jeff Olsen

Nonfiction.  A personal development book with the philosophical mind-set to "start with a penny" in every aspect of life.  Small, daily disciplines -- applied consistently -- win out over the big leaps every time.  Inch by inch, life is a cinch, yard by yard is very hard.  A reminder to show up, be consistent, be patient, measure your progress, and to let compounding do its magic over a long period of time.  


Lonesome Dove, by Larry McMurtry

Fiction.  A 1985 Pulitzer Prize-winning novel (also a wonderful mini-series staring Tommy Lee Jones and Robert Duvall).  The book explores the characters Captain Call and Gus McCray and their difficult journey herding cattle from Texas to Montana during the 1800's.  The two cowboys are complete contrasts, yet the best of friends.  McCray is lighthearted, a wrangler and a joker who tends to enjoy life no matter how difficult the circumstances may be.  Captain Call is a workaholic plowhorse with an uncanny ability to persevere and press forward with a single focus.  I love the characters in this book - which explores the heartache and challenges of the early "entrepreneurial" cowboys of the young America.

How Will You Measure Your Life?  By Clayton Christensen


Nonfiction.  I checked this one out after hearing Christensen give a lecture on the topic during a TED talk.  The Harvard Professor and author of bestselling "Innovator's Dilemma" explores the reasons why those who've so often found "success" as defined by the world's standards, end up miserable after several years or decades.  Filled with personal examples and analogies, Christensen gives us some clues as to what's really important and how we might consider re-framing and measuring our life in the context of the things that really matter.


The Cure for the Common Life: Living in your sweet spot, By Max Lucado

Nonfiction.  Not sure about the dogs on the couch cover, but a good read nonetheless.  Using a gospel perspective with references to the Scriptures, Max shows the reader how to live the life God meant for each of us to live.  



The Last Lecture, By Randy Pausch

Nonfiction.  This book is based upon Professor Pausch's last lecture that he gave to students before he was lost to cancer.  There are many gems of wisdom in each of his various chapters that help us to get a glimpse into the fragility of life and the things that really matter in this world.


Loosing My Virginity, By Richard Branson

Nonfiction.  This autobiography by Branson takes us on an entrepreneurial adventure.  I really enjoyed learning more about the way this multi-billionaire, serial-entrepreneur developed his daredevil philosophy to try everything at least once.  Funny and crazy stories of a guy who truly lives life on the edge. 

Are You Growing Grain...or Growing Men?

If you want a year of prosperity, grow grain. 

If you want ten years of prosperity, grow trees. 

If you want a hundred years of prosperity, grow men 

-- Chinese Proverb

At times, it may seem I'm not very involved with the various businesses that I own.  I'm not what some would call an "owner-operator" in most cases.

I believe my work isn't specifically the technical or process-oriented tasks involved in running a company.  My role is to find good men or women to build my companies, and then build them.

The only way to grow people is to:

1. Allow them autonomy and some freedom to make decisions,

2. Ask more questions, to pull out, rather than dictate and push down orders,

3. Recognize in them the goodness that is inherit in all people,

4. Recognize in them the specific talents and abilities that they alone bring to the enterprise.

I love the people I'm helping to grow. 

And I love them, not just because they help build the companies I own, but because I'm truly vested in and investing into their development and personal growth.

In most situations, if you're investing into someone or something, it's because you believe in the prospects.

I believe in my people, and so I invest in them by empowering them to find the solutions to the problems they'll invariably face as operators of a company.

 want 100 years of prosperity, grow people. - See more at: http://quotationsbook.com/quote/32845/#sthash.wilIqW8g.dpuf

oblem, craft a solution and sell that solution to others. As an interesting side note, it’s a common misconception that the word crisis and opportunity mean the same thing in the ancient Chinese language. This misconception initially gained momentum when John F. Kennedy incorrectly cited it in a sp - See more at: http://juniorbiz.com/40-chinese-proverbs-for-entrepreneurship#sthash.NYz8y1xq.dpuf

oblem, craft a solution and sell that solution to others. As an interesting side note, it’s a common misconception that the word crisis and opportunity mean the same thing in the ancient Chinese language. This misconception initially gained momentum when John F. Kennedy incorrectly cited it in a sp - See more at: http://juniorbiz.com/40-chinese-proverbs-for-entrepreneurship#sthash.NYz8y1xq.dpuf

oblem, craft a solution and sell that solution to others. As an interesting side note, it’s a common misconception that the word crisis and opportunity mean the same thing in the ancient Chinese language. This misconception initially gained momentum when John F. Kennedy incorrectly cited it in a sp - See more at: http://juniorbiz.com/40-chinese-proverbs-for-entrepreneurship#sthash.NYz8y1xq.dpuf

oblem, craft a solution and sell that solution to others. As an interesting side note, it’s a common misconception that the word crisis and opportunity mean the same thing in the ancient Chinese language. This misconception initially gained momentum when John F. Kennedy incorrectly cited it in a sp - See more at: http://juniorbiz.com/40-chinese-proverbs-for-entrepreneurship#sthash.NYz8y1xq.dpuf

oblem, craft a solution and sell that solution to others. As an interesting side note, it’s a common misconception that the word crisis and opportunity mean the same thing in the ancient Chinese language. This misconception initially gained momentum when John F. Kennedy incorrectly cited it in a sp - See more at: http://juniorbiz.com/40-chinese-proverbs-for-entrepreneurship#sthash.NYz8y1xq.dpuf

oblem, craft a solution and sell that solution to others. As an interesting side note, it’s a common misconception that the word crisis and opportunity mean the same thing in the ancient Chinese language. This misconception initially gained momentum when John F. Kennedy incorrectly cited it in a sp - See more at: http://juniorbiz.com/40-chinese-proverbs-for-entrepreneurship#sthash.NYz8y1xq.dpuf

oblem, craft a solution and sell that solution to others. As an interesting side note, it’s a common misconception that the word crisis and opportunity mean the same thing in the ancient Chinese language. This misconception initially gained momentum when John F. Kennedy incorrectly cited it in a sp - See more at: http://juniorbiz.com/40-chinese-proverbs-for-entrepreneurship#sthash.NYz8y1xq.dpuf

If you want one year of prosperity, grow grain. If you want ten years of prosperity, grow trees. If you want one hundred years of prosperity, gr - See more at: http://juniorbiz.com/40-chinese-proverbs-for-entrepreneurship#sthash.NYz8y1xq.dpuf

“If you want one year of prosperity, grow grain. If you want ten years of prosperity, grow trees. If you want one hundred years of prosperity, grow p - See more at: http://juniorbiz.com/40-chinese-proverbs-for-entrepreneurship#sthash.NYz8y1xq.dpuf

“If you want one year of prosperity, grow grain. If you want ten years of prosperity, grow trees. If you want one hundred years of prosperity, grow p - See more at: http://juniorbiz.com/40-chinese-proverbs-for-entrepreneurship#sthash.NYz8y1xq.dpuf

7 Strategies For Turnarounds

When evaluating the business opportunity, know in advance what your exit will be, and what improvements you will be implementing in the company.

There are 7 ways to turn a company around, in order below from most-preferred and profitable to the least preferred and least profitable.

1. Resurrect – Make changes to the company from within: a new sales contract or perhaps re-calibrating the marketing campaign, or a new innovation or disruptive technology. It’s easier said than done.  If you can improve the company from the resources within the company, you’re more likely to successfully turn the company around under your own terms.  When considering any business purchase, consider what opportunities are within the company that aren’t being tapped into or could use further development and attention.  With personnel for example, often the expertise and ability you’re looking for already exists within the company.  Peter Drucker famously stated,  “Because its purpose is to create a customer, your business has two purposes and two purposes only: Marketing and Innovation. Marketing and innovation make you money, generate sales, produce profit. Everything else is an expense...”.  Keep in mind that Innovation may come in spurts and with flashes of insightful breakthroughs.  But Marketing requires steady, consistent application of conveying a cohesive message often.  Have something good to say, say it well, and say it often.

2. 2.  Recruit – Similar to a resurrection, if you’re recruiting top-talent from the market or from competitors, who have the experience and domain knowledge you’re needing for the company, you can often dictate the terms and conditions under which those talent-infusions come on board.  Whenever you consider buying a company, also look at the competing environment to find out who you might be able to recruit away and re-insert them into the company you’re looking to purchase.  The biggest challenge with recruiting or promoting from the outside, especially in top-level positions, is that these individuals will not have the specific cultural upbringing as those already inside the company. Still, if the company is struggling, it likely needs help from the outside, including new ownership, new management, and new employees.

3. Refinance --  Often times the target company is encumbered with debt that can be refinanced under a new loan.  The new loan may offer a lower rate or a longer amortization period.  Taking out the old loan with a new loan is another way to make the company cash positive. 

4. Re-equitize – Similar to a refinance, only you’re employing equity instead of debt capital.  Equity can come from existing managers or employees, recruited, to-be-hired managing partners, the broker involved in the deal, friends and family, private equity groups, wealthy individuals, investors, or your own pocket book.

5. Re-amortize – This typically involves changing the amount owed or the timing of the payments to the creditors.  Often, if the company is struggling or encumbered with debt, the creditors will take a voluntary haircut on the amount due, or will stretch out the payments or lower the rate, if they know there’s a plan.  In the extreme cases, if the company has been more or less forced into bankruptcy, the bankruptcy judge can actually force the creditors to take a cram-down on the debt, which basically means the creditor takes a substantial haircut on the debt to align more realistically with the underlying assets’ actual, current valuation. 

6. Re-sell – Selling the business as a going concern is far preferable than simply shutting it down or liquidating the assets of the business in a forced manner.  If you find that you’ve purchased a business that you’re not cut out for, or you simply aren’t driving the business like it needs to be driven, it’s far better to put it in the hands of someone who can and is willing to make it work.  If the company has value in the hands of someone else, sell it.  If the company is doomed to failure, (for example a flawed or no-longer relevant business model) do not sell it: it’s better to shut it down and pull the plug than to sell a broken, can’t-be-fixed business to someone else.  Refuse to sell refuse. 

7. 7. Refuse – If the company you bought cannot or should not be sold as a going concern, if there’s simply no way the company can be saved as it is now, begin selling whatever assets you can that have real value.  In one of the biggest mistakes I made, I bought a company that was similar to another successful business I’d bought in the past.  I had made 10x my investment on the previous one, and thought this one would be similar.  I was overconfident.  I hadn’t done my due diligence as thoroughly as I should and after 3 months of owning this company decided it was actually better to shut it down completely rather than try to sell it to someone else or try to fix it (it was not a ‘fixable’ company by the time I bought it; and it would have been wrong for me to try to sell it to someone else as a going concern business).  When you buy a company, it’s easy to get sucked into the cashflows from the income statements and not take a good hard look at the balance sheet – the assets that can be sold should something go south.  As Warren Buffet says, the first rule of investing is don’t loose money.  Easier said than done, but a good follow up rule to this is to make sure your purchasing enough hard assets that you can cover your downside should the business go south.  One of the biggest problems I see buyers make is they buy too much goodwill and not enough hard assets.