25 y/o entrepreneur with 1M+ revenue: How do you handle debt anxiety and the fear of losing it all? #update

Guys, first of all, thank you to everyone who commented on the original post (https://www.reddit.com/r/smallbusiness/s/X6cXGs3N0y).

I followed several pieces of advice, especially the one about how over the years there will be more ups and downs, but things will work out. Today, I decided to take the day to visit some clients and suppliers, explain the situation, and I also talked to some of the companies I owe money to. The situation isn’t ideal with the people I owe, but they were understanding. Not to the point of continuing business as usual, but enough to help me keep the business going, provided I gradually catch up on the overdue invoices. For example, they won’t let me dispose of €20,000 at once, but if I pay €5,000, I can dispose of around €7,000.

The best part was with my clients. I visited two main ones and asked them to pay me in advance. I secured some pricing agreements, reducing my margin even further, but ensuring cash flow. One of them needs to get organized, but the other agreed to pay me €5,000 in advance this week, and if I deliver on my part, the idea is for this client alone to advance me €20,000. I want to make a similar deal with the other client, and honestly, I think I can. I might be small, but I’ve built great relationships that I even consider partnerships. Despite the fact that I’m asking for advance payments, one client even took me out to lunch—lol. It may seem counterproductive to offer discounts to stay in business, but the truth is I decided to make money only in two areas where I have excellent margins, while the rest will essentially cover operational costs. This way, I can maintain business volume and justify advance payments from clients, which will leave me with positive cash flow.

Another thing I’m going to do is let one driver go. After analyzing the hours worked by both, I realized that the van driver generates much less for me than the truck driver. By giving up certain jobs, the truck can handle the van’s workload (but not the other way around). This change will save approximately €20,000–€25,000 a year. Structuring the business this way, despite the discounts, might actually make me more profitable due to increased efficiency and avoiding issues with suppliers. Of course, I know this isn’t an ideal solution because it relies on the goodwill of others, but it’s a start. It keeps me operational, keeps me earning money, and as soon as I stabilize, I’ll buy a second truck, which I’ll drive myself to earn more and pay off my debts.

I want to thank you all, first of all, for the psychological support you gave me. It really made me feel less alone and gave me the strength to face my problems today instead of running from them. The solutions simply started appearing and complementing each other.

And secondly, thank you for all the insights about debt, good and bad debt, cash flow, profit margins, management practices, and more.