When customers default, and business goes to $#!T.

[BillBoard]

Got notice on Friday that our biggest customer is going into bankruptcy, they make up 16% of our business.

I had planned for this contingency, yet it feels like someone knocked the wind out of me.

Luckily I am not one that is afraid to pick up the phone and prospect, so I will be quite busy seeking leads even during the Holidays.

Anyone here had a similar experience?

[Ares]

Before all this hit, I was going to go into business with a partner. He did more corporate consulting, I did more residential we were going to combine it under one roof. He had clients that were behind. One had over 10 grand in consulting charges and was over 4 months behind in paying. So suffice it to say, I stayed a wage slave as I NEED a source of revenue.

[Book]

There is a reason these guys select "Limited Liability Corporation" when they go into business.

LLC (http://www.google.com/search?hl=en&biw=1280&bih=573&q=llc&gbv=2&ie=UTF-8&sa=N&tab=iw)

;)

[Spectrism]

Got notice on Friday that our biggest customer is going into bankruptcy, they make up 16% of our business.

I had planned for this contingency, yet it feels like someone knocked the wind out of me.

Luckily I am not one that is afraid to pick up the phone and prospect, so I will be quite busy seeking leads even during the Holidays.

Anyone here had a similar experience?


In a previous job, I was working with Carrier... my biggest customer. They closed down their plant and moved some to Georgia and most to China. My boss looked me plain in the face and asked: "How are you going to make up for those lost sales?" In a marketplace that was already shrinking and no new propsects starting up, the writing had been on the wall for a long time. I left that company. Since then, his staff dropped by more than 50%. If you are in a mature business and you know all the customers already, there is not much to do. If you are just a small fish in a big pool, then you have to be innovative to steal the business from your competitors.

[BillBoard]

It is really a challenge. I guess something has to give sooner or later, you cannot have so many people unemployed without civil disturbances. I wonder if the Fed models the rate of bankruptcies they expect to happen as they shrink the economy.

[cthulu]

Money is created when banks lend it into existence. When a bank provides you with a $100,000 mortgage, it creates only the principal, which you spend and which then circulates in the economy. The bank expects you to pay back $200,000 over the next 20 years, but it doesn’t create the second $100,000 – the interest. Instead, the bank sends you out into the tough world to battle against everybody else to bring back the second $100,000.

All the banks are doing the same thing when they lend money into existence. That is why the decisions made by central banks, like the Federal Reserve in the US, are so important – increased interest costs automatically determine a larger proportion of necessary bankruptcies.

So when the bank verifies your “creditworthiness,” it is really checking whether you are capable of competing and winning against other players – able to extract the second $100,000 that was never created. And if you fail in that game, you lose your house or whatever other collateral you had to put up.

- Bernard Lietaer1

http://www.yesmagazine.org/issues/money-print-your-own/beyond-greed-and-scarcity

[Twisted Titan]

Money is created when banks lend it into existence. When a bank provides you with a $100,000 mortgage, it creates only the principal, which you spend and which then circulates in the economy. The bank expects you to pay back $200,000 over the next 20 years, but it doesn’t create the second $100,000 – the interest. Instead, the bank sends you out into the tough world to battle against everybody else to bring back the second $100,000.

All the banks are doing the same thing when they lend money into existence. That is why the decisions made by central banks, like the Federal Reserve in the US, are so important – increased interest costs automatically determine a larger proportion of necessary bankruptcies.

So when the bank verifies your “creditworthiness,” it is really checking whether you are capable of competing and winning against other players – able to extract the second $100,000 that was never created. And if you fail in that game, you lose your house or whatever other collateral you had to put up.



Now you begin to understand why the study of coin and currency is so crucial to economic survial

[BillBoard]

Money is created when banks lend it into existence. When a bank provides you with a $100,000 mortgage, it creates only the principal, which you spend and which then circulates in the economy. The bank expects you to pay back $200,000 over the next 20 years, but it doesn’t create the second $100,000 – the interest. Instead, the bank sends you out into the tough world to battle against everybody else to bring back the second $100,000.

All the banks are doing the same thing when they lend money into existence. That is why the decisions made by central banks, like the Federal Reserve in the US, are so important – increased interest costs automatically determine a larger proportion of necessary bankruptcies.

So when the bank verifies your “creditworthiness,” it is really checking whether you are capable of competing and winning against other players – able to extract the second $100,000 that was never created. And if you fail in that game, you lose your house or whatever other collateral you had to put up.



Now you begin to understand why the study of coin and currency is so crucial to economic survial


That's why you have to create alternative trade systems!

[Libertarian_Guard]

When You Were Young And Your Heart Was An Open Book
You Used To Say "Live And Let Live"
(You Know You Did, You Know You Did, You Know You Did)
But If This Ever Changing World In Which We're Livin'
Makes You Give In And Cry
Say "Live And Let Die"
"Live And Let Die"
"Live And Let Die"
"Live And Let Die"

What Does It Matter To Ya
When You Got A Job To Do
You Gotta Do It Well
You Gotta Give The Other Fellow Hell


You Used To Say "Live And Let Live"
(You Know You Did, You Know You Did, You Know You Did)
But If This Ever Changing World In Which We're Live In
Makes You Give In And Cry
Say "Live And Let Die"
"Live And Let Die"

Paul McCartney