Some of you may remember that I'm a partner in a small firm. I've been warned for several months that money was getting low and today I found out we won't make payroll this month. This is not a shock really. For Jan- Mar we did nearly nothing. No work came in for 3 months solid. I've been here going on 13 yrs and we have never been slow for longer than 3-4 weeks. Well that lag in work has finally caught up to us in the checkbook. We have been terribly busy for the last 3 months, but just haven't caught up yet. I don't forsee it getting worse for now, but I've got this feeling of dread that wont go away. I think I'm going to look for a part time job to keep some money coming in, but I honestly have no idea what I can do in the afternoons around here. This is not going to make paying the new mortgage any easier. Oh well, Wa wa wa. Just needing a shoulder to cry on I guess.
Bad times
- Thread starter goodal
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blybrook PE
Veteran 10k Spammer
That sucks man. All I can say is good luck.
The economy has yet to start a true recovery with the current "leadership".
Hope it turns out for the better and you can keep a shirt on yer back.
The economy has yet to start a true recovery with the current "leadership".
Hope it turns out for the better and you can keep a shirt on yer back.
"They" is sort of "me". We only have 4 people, two of us being owners. The primary owner (not sure the correct term) is not interested in getting a loan to cover payroll at this point. Of course, he is much better off than me financially. I see where he is coming from though. Getting an operating loan would solve our immediate crisis, but what if we don't come out of this. Then we are $40-$60k more in the hole. If anyone has a good argument for, or a safe way to do, an operating loan I would love to hear it, because I may have to lead the fight for one very shortly. Of course, the real answer is to get more work in here, but it just doesn't seem to be out there to be had in our neck of the woods.
Sorry to hear this Badal. you say you've been very busy for the last 3 months. Maybe some effort should be made to start collections ASAP to get the cash flow back. I hope you're successful in getting more work soon.
knight1fox3
Jedi MASTER & Friend of Capt. Solo
Sorry to hear that Badal. Hope it turns around soon.
Have you considered trying to do some marketing using social networking?
Have you considered trying to do some marketing using social networking?
EM_PS
shining like a lighter...
An operating loan to cover a 4-person firm? :huh: Think its probably time to accept reality and let people go, which in this case appears to be 2 people anyways.
I wish it where that easy. One is related to the other owner and the other one just had a baby. One is impossible to lay off and we would have to be heartless to lay the other off. Not to mention that they are both great employees.
Judowolf PE
Well-known member
Is there a way to invoice for the work you have completed on the projects you are currently busy on, or can you get an operating loan to cover those expenses knowing that there is a payday on the way once these project are finished?
Dexman PE PMP
Internationally PMP'n his PE-ness
You could always sell the corporate jet and cancel the country club membership...
J/K
Several larger engineering firms couldn't weather the economic storm as long as you have, hope things pick up and you get out of this.
J/K
Several larger engineering firms couldn't weather the economic storm as long as you have, hope things pick up and you get out of this.
Sapper PE LS
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That's a tough pill badal, sorry to hear this. I think I understand that you are a partner, but not an equal partner, as in the other guy makes the final decision. I think if I were in your shoes I would just sit down with him and try to work out a plan. I gotta be honest, the idea of not paying employees for work that has been done sounds like a very poor decision on his part. Is it that you and he are taking the cut or all four of you?
I hope it works out, but it seems to me, and I'm not trying to be negative, I'm sure you care for and respect your business partner, but it seems to me he might need to hear the voice of reason, whether that is to take out a loan or lay some folks off or start a collections effort.
Good luck brother.
I hope it works out, but it seems to me, and I'm not trying to be negative, I'm sure you care for and respect your business partner, but it seems to me he might need to hear the voice of reason, whether that is to take out a loan or lay some folks off or start a collections effort.
Good luck brother.
csb
Well-known member
That sucks.
Folding is not in the cards, at this point. We have been busy lately and the future looks reasonable good, just very low on funding now. Accounts receivable is also pretty low. I know others have done this routinely to stay afloat, but this is uncharted ground for our firm. No we are not equal partners. I am working up to that, but I do have a say in what we do and how we do it. I think the idea is for he and I to not take a paycheck this month. Hopefully, everyone else will get paid.
This topic sucks.
This topic sucks.
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