One of the biggest mistakes you can make when cash gets tight is to do something really stupid. Sadly, it happens all the time in business.
It's amazing how our physical and mental reactions to money problems seem to be hardwired in our brain. I've felt it when my own money was at stake in a business. I've even felt the same fear-based emotions and reactions in my consulting work with companies, even when I didn't have any money at stake in the deal at all.
If you are in the middle of a cash crisis, get some counsel from people you trust who are not as emotionally involved in the business as you are. Ask them to be brutally honest with you when you share with them what you are doing to deal with the cash flow problem.
The last thing you want to do is take a financial problem and turn it into something much more serious.
- No hiding cash
- No lying
- No providing false financial information
- Make sure the government gets paid
It's not against the law to allow certain bills to go unpaid while you work through a cash flow problem. It is against the law to steal or commit fraud.