I have a client who recently has been seeking medical treatment for stress-related issues. His issues have come from the tidal wave of problems that have washed up over his business and, as a result, personal life. Unfortunately, his story is not uncommon.

Some sobering statistics: Each year 1 out of 4 new small businesses will fail within their 1^st year, while another 1 out of 4 will fail within the next 2 years. Each year, for every new small business that opens its doors another small business will be shutting down (1).

Each business starts with the best of hope and intentions to succeed. What happens to each of these businesses during their life cycle is a reflection of their effort, their choices, and luck. Unfortunately, a business can do a lot of things the right way and still not succeed due to circumstances that are largely out of their control.

The client mentioned above fell victim to circumstances, some out of his control, that lead to an unraveling of his company at which he worked so hard to build. For him, it started with a shift in the business climate. As a member of the fashion industry, change moves quickly and learning to adapt is essential, particularly in the online world of today. Changes in this world hit my client and his business particularly hard and it happened very fast.

Signs were there, some smaller companies with whom he had minor dealings went bankrupt. They seemed to disappear overnight. However, it wasn’t until his largest client, a sizable presence in the industry, teetered and then eventually went bankrupt that his world swiftly changed.

It’s not hard to imagine what happened next. His company’s largest source of revenue was now gone which, of course, has reverberations throughout the business. My clients’ operating cycle slowed considerably. The ability for him to pay vendors slowed and then became increasingly problematic.

What happens to a business that has trouble making payments? What can be done when revenues begin to slow and a company’s debt gets unmanageable? The country is filled with collection companies that will work for the creditor. Who helps the debtor who wants only to get out of the situation in which they find themselves?

Creditors can be relentless. Phone calls on a daily basis, emails and/or snail mail letters demanding payment. Sometimes it feels like it will never end. The constant hounding makes it increasingly difficult to focus on the main task at hand, getting back to that which made your business successful in the first place.

If you find yourself in this situation, wouldn’t it be nice to turn off all that outside noise and get back to the task of bringing your company back to profitability? If, for a moment, wouldn’t it be nice to be able to turn off the creditor calls and the constant demands for money? Even better, what if those debts could become manageable again?

This was the state in which I found my client. Many clients, in fact, have faced or are facing mild to severe cash flow problems; constant haranguing from creditors; and/or unmanageable debt, when we first meet.

My company, Pacific Capital Consulting, is a small LA-based company that approaches our work like we are one large community. After all, isn’t that what we are? As mentioned previously, the statistics are sobering when it comes to the failure rate of small businesses. At Pacific Capital we have a passion for helping our clients get back on their feet because our belief is that each small business we save is actually a wife or husband; mother or father; new or experienced entrepreneur looking to make a difference.

We are experts at working on your behalf, with your creditors, to mediate and/or restructure your debt. Our objective is to reach a renegotiated amount with your creditor(s) that you can afford and that allows your company to remain a viable entity. We do this by restructuring your debt, often by 30% – 70% or more.

We believe so strongly in what we do that we will not charge you a penny unless there is a satisfactory resolution. As for my client? He’s not out of the woods yet, however, he has made progress and continues to work towards solving his company’s major problems. He’s been freed of the burden of dealing with creditors and has continued to work towards profitability. He’s also feeling better and plans to be in business for at least another year.

1. “Research on Small Businesses” – Moya K. Mason. Moyak.com.