May 10, 2024
Imagine being on the verge of losing everything—not just your business and all your savings you put into it, but also the livelihoods of nearly a thousand employees.
This was a reality I faced while managing a company. We were at a critical crossroads, with insolvency looming and a lender ready to pull the plug.
The financial outcome for me and other investors was clear. Our equity was lost, and the lender was taking control of the business. This was immutable.
The Pressure to Walk Away
Many of my most successful friends and advisors told me, “Move on!
Let the chips fall where they will.” “You win some, you lose some.” “You have already lost several years of your most valuable asset – time.” This gave me a lot to think about.
But what would happen next?
This was unclear. What would happen to our employees, customers, and suppliers? What would I do next? I didn’t have a plan.
All that I knew and could think about was that we had other stakeholders in our business who were innocent bystanders that would be severely impacted by the outcome.
This was the biggest leadership decision I had ever experienced.
Choosing Responsibility Over Easy Exits
I wanted to save the business and protect the team that had worked so tirelessly beside me.
I tried to find a different way forward—a way to make the most of the elements I could improve and accept the painful financial realities that I could not change.
This path wasn’t guaranteed to work and save the jobs and was fraught with risks and high stakes, including the fact that I had not operated a business like this before.
Taking Bold Action
It required a deep sense of responsibility and a belief in the potential of the people around me.
I rallied the best talent I could find, crafted a new strategy, and managed to steer through the storm.
The outcome?
We turned the company around! We had preserved a thousand jobs and secured a future for countless families!
Lessons in Leadership
I remain eternally grateful and impressed by our team’s extraordinary work.
Plus, I received outstanding mentorship from truly remarkable operators who coached me throughout this time.
Many of these lessons now define how I look at problems and opportunities.
In hindsight, while I still wish I had a time machine and could have avoided the insolvency in the first place, we ultimately made the best of a bad situation. Sometimes that is all you can do.
The Question of Legacy
Have you faced a moment in your leadership journey where the stakes were high, and the right path was not the easiest?