How I Almost Grew Myself Broke – And the 6 Rules That Saved My Business

Many business owners think growth automatically means more profit — but without the right financial strategy, it can lead to dangerous cash flow issues. Bob’s story is a powerful reminder that understanding how money moves through your business is just as critical as making sales.

“Hi, I’m Bob Negen. I owned independent toy and kite stores for almost 20 years, and during that journey, I learned just about every lesson a store owner can learn — some the easy way, most the hard way.

 One of the hardest? I almost grew myself broke.

Growth eats cash, and as the business started growing like crazy, that fact became very clear. Then, a few things outside my control didn’t go my way, and suddenly we had mountains of bills and a ton of debt. I’d been staring at the financial statements for weeks and just didn’t know what to do.

 One morning, walking my dog, I was contemplating the gut-wrenching decision to pull the plug on the business I loved. As I walked back into the house, my wife handed me the phone and on the line was an experienced, multi-business owner that my financial advisor suggested I talk to. After a few pointed questions, he said six words that changed everything…

 ‘I think we can save this business.’

His advice — counterintuitive but absolutely right — saved us. Here’s what I learned about surviving a cash-flow crisis:

 1. Always pay your taxes first. Fall behind with the IRS, and the penalties will crush you. Keep taxes current, even if you have to work out a payment plan.

 2. Pay your employees next. You can’t sell without a loyal, motivated team. Never ask them to delay cashing a paycheck.

 3. Cover occupancy costs. No store, no business. Negotiate with your landlord and keep your doors open. They want you to stay in business, too!

 4. Pay lenders with secured assets — and yourself. If a loan is personally guaranteed, default can mean losing your home, car, and savings. Protect yourself by taking some money out in cash.

 5. Vendors and unsecured creditors come last. Rank them A, B, and C by importance. Pay your A vendors enough to keep goods coming. Your B’s and C’s may have to wait. It’s not personal — it’s business.

 6. Through it all, act. Don’t freeze in stress. Make the (uncomfortable) calls, plan low-cost, high-impact promotions, connect even more closely with your customers, and keep moving forward. My mantra was: “We’ll never have a successful business if we’re not in business.”

 That dark season made me stronger, smarter, and more resilient. If you’re facing the same fear, know this: you can make it past your cash flow crunch. Focus your cash where it matters most, protect yourself, and keep moving.

 I did it. So can you.” - written by Retail Expert and WhizBang! Retail Training Co-founder, Bob Negen.

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