Part 3/8:
Jose’s journey down the debt spiral began when he expanded his business too rapidly without ensuring a solid financial foundation. The pressure of meeting payroll, coupled with sluggish sales over several months, led to significant losses. The harsh truth is that his lack of effective financial management resulted in a "snowball effect"; he found himself unable to keep up with payments, ultimately leading to an overwhelming sum of debt.
He shared that expenses averaged around $20,000 monthly, while his revenue could not consistently support that overhead. This discrepancy created a dangerous cycle where each financial misstep required more borrowing to stabilize the failing enterprise, leading to increased financial strain.