I want this to be a message of hope, not another doom-and-gloom editorial. But we have to be honest with ourselves. Times are tough. From all sides, we hear about the lack of capital, the number of great brands winding down, the ever-increasing business costs, and it’s not bullshit. It’s hard out there. But as I said at the outset, this is a message of hope. You’re at a crossroads, and you can turn things around. You can reimagine your business. 

Before I go any further, I want to have a heart-to-heart conversation. Choosing the path of entrepreneurship comes with hardships. It takes a toll on you financially, emotionally, and on your relationships. I’ve had a few conversations recently where it was evident that the founder was drained and ready to move on but was blocked from doing so out of fear of letting people down and being seen as an unsuccessful entrepreneur. Letting go is okay if you have genuinely taken things as far as possible, if the impact on you financially, emotionally, and relationally is too significant. There is no shame; it is not a failure, and you owe no one more than you can give. If you continue to fight the fight, please ensure you are doing so for the right reasons and not out of a false obligation. 

Okay, moving on. 

The rules have changed. To use a sports metaphor, imagine being in the locker room, putting on your shoulder pads and helmet, and then running out of the tunnel only to find out you are no longer on a football field but instead standing on a baseball diamond. It is that seismic a change. The good news is that you can toss the playbook out the window and call an audible. All right, that’s all for the sports metaphors. 

For the past decade, the expectation for building a CPG business has been topline growth, driving velocity, distribution, and channel expansion. You raise money early, push the accelerator down, raise money again, rinse, and repeat until you achieve an exit. Here is the rub. Even in the best of times, this didn’t work for most. For years, we have hovered around an 85% two-year fail rate. Since the rules have changed, you can forget the above. There is very little early money. The cost of driving topline, velocity, and distribution growth is high. Strategics are waiting longer to make acquisitions. It’s time for you to reimagine your business. 

I get it. You have little to no cash, investors who invested under the old rules, vendors to pay, and customers you have to serve. What the hell do you do? Refer to my earlier heart-to-heart conversation and answer that question first. If you’ve decided that you still believe you’ve got something that consumers want and still have the drive and desire to build, then it is time to rethink your entire business. Your new mantra is profit before growth and cash before everything. You need a new plan. You’ll have tough conversations with current investors and vendors to negotiate a viable path forward. You’ll walk away from some unprofitable customers and make hard decisions about employees and service providers. To put it bluntly, it’s going to suck. But you can do it with honesty, transparency, and a well-designed plan.  

To stick with the straight talk, the above is not always possible. Don’t wind down your business because you think you have no choice. Get some help. Sit down with someone who can help you assess your position and provide options. 

I want to help those of you in this situation. I am offering one-on-one coaching sessions. We will review your financial situation, critically examine your business, prepare you for investor, vendor, and customer negotiations, and determine the path forward. Reach out to me directly or click here to learn more. 

It is possible to reimagine your business by doing a Tardigrade Turnaround. The rules have changed, opening a window of opportunity. Now, it’s up to you.