When to call for help: Ramon Puente on rescuing failing businesses

Often the difference between bankruptcy and survival is timing and guidance. Ramon Puente, who works as a business mentor for companies in crisis, says the role is to help entrepreneurs manage the emergency. Many firms are prepared to grow, but when they collapse their leaders become overwhelmed and need outside help to see options.

The moment to call for help is as soon as possible. If the company has a wound that is bleeding, it must be stopped. Once assistance is requested, the first step is a diagnosis: analyse the business model, management and debt. Within fifteen days or less the situation and the strategy should be clear, decisions must be taken, negotiations with banks begun, and a recovery timeframe set — or, if closure is unavoidable, a soft landing planned. "If you fall, at least let it be on the green side of the mountain," he says.

Common causes of failure include an inability to meet debt obligations, poor investments and faulty management. The hardest case is when the business model itself fails, because then finding solutions is difficult. Mistakes are normal, he notes, but when an error can affect the company structurally it becomes a serious problem. Decision‑makers must understand the consequences of their choices, and personal circumstances matter — an error at 20 is not the same as one at 57 with three children. Entrepreneurs need to be clear about their situation and what they can afford to lose.

Many companies do recover; often they simply need time to put their affairs in order and get on top of debts, although turnover may not return to previous levels. The most difficult part of the recovery process, Puente says, is admitting a mistake and accepting help. It can feel like the death of a family member: problems are downplayed until suppliers or employees cannot be paid, and the feelings of guilt and shame are intense. But when owners accept failure and act, they become the essential tool of the solution.

Puente draws on personal experience. His own company collapsed in 2000 after a disagreement between partners. The process was harsh, but he learned from it and was later contacted by an investment fund; having lived through the process enabled him to help others. Reliving that episode is not merely painful, he says, but provides tools to understand situations and advise. A common reaction is to blame others; his job is to help leaders accept responsibility, because only then can they improve.