Regardless of whether you bring in outside business training for your team or not, unless you really learn how to play the finance game, you can do some serious damage to your business. It has been my experience that, compared to the mainstream banking institutions, alarm industry "inside" lenders seem to be more reasonable and more willing to work with alarm dealers when some of the adverse change criteria get close to the cut-off line of breaking the rules. Still, you might consider having an experienced attorney fully explain the covenants in your loan documents before you sign anything. As for borrowing money, it's usually best to pay down your debt as quickly and efficiently as you can. The finance game has clearly helped many businesses in our industry in many profound ways. It can however become a double-edged sword unless you take the time to really learn how to play it, and how to protect yourself when things change.
About the author: Bob Harris is managing director for The Attrition Busters. With over 30 years in the alarm industry, he provides seminars, business consulting, and workshops to help great companies become even better. Bob can be reached at (818) 730-4690 or by email at firstname.lastname@example.org. Learn more about The Attrition Busters at www.attritionbusters.com.