Why Does Business Structure Matter When Shocks Hit? #shorts #business #finance

When you're in a position where you're structured properly and tailored to you, options are so much more open. And again, you're not scrambling in all of that haphazard mess that you just recovered from one thing and then you get knocked again. So you're not wound dizzy. And what I kind of wanted to share was just a really quick visual on looking at it. So I'm just going to try whiteboarding it. If you imagine you have 2 ladders, so this side I would call it the unstructured. And when somebody's unstructured, we'll have these rungs on your ladder here. And when these policy shocks happen, What most owners will experience is each of these rungs start breaking down. How far does it fall into your business? That's going to be based on how your ladder is structured. Well, on the structured ladder then comes adding all these bolsters around so you can protect your multiple, you can protect your EBITDA, you can start protecting needing to go to credit. You'll have readily access to liquidity, and that's when you're installing a really good tool inside your business to withstand some of these shocks so that when you're climbing this ladder, you don't face the challenges of potentially one of these rungs breaking under your feet. So structure isn't paperwork, it's shock absorption.