A revealing message from a long-time client, a 67-year-old business owner employing nearly 2,000 Filipinos, sparked a critical conversation about the state of entrepreneurship as we head into 2026. Late last quarter, he sent a simple but heavy text: "Prof, do you know anyone who might want to buy our business? Margins are gone. Cash is tight. I’m exhausted. I just want out."
The Real Problem: Leadership, Not Viability
This was not a story of failure or extravagance. This entrepreneur had spent decades navigating inflation, rising interest rates, labor turnover, and supply chain issues. The current climate, however, is shaped by deeper structural uncertainty. Global signals, from Donald Trump's talk on protectionism to Xi Jinping's stance on Taiwan, tell markets one thing: volatility is now a permanent feature.
Instead of answering his question about buyers, the response challenged his perspective: "This may not be a selling problem—it may be a leadership and metrics problem." Under pressure, owners chase revenue, but many fail due to misaligned cost structures and poor capital discipline. It's possible to grow sales while burning through cash.
Five Critical Questions for Every Business Owner
Before considering an exit, every founder must confront these five questions:
1. Are you chasing sales while ignoring cost ratios? Revenue feels good, but margins determine survival. What is your payroll percentage? Is your team sized for productivity or comfort? Many struggling firms are not under-selling; they are over-staffed.
2. Are fixed costs designed for resilience or prestige? Office space and facilities feel permanent until revenue drops. If income falls by 20%, can you operate without distress? In volatile times, fixed overhead is a silent threat.
3. Is marketing measured by cash return or habit? Marketing must deliver clarity, not hope. Which initiatives actually generate cash? Growth without financial discipline is just postponed pain.
4. Is debt supporting your strategy—or consuming it? Debt isn't inherently bad, but unmanaged leverage is unforgiving. What's your debt-to-equity ratio? Are loans funding expansion or sustaining inefficiencies? If rates rise again, do you have strategic flexibility?
5. Are decisions being made—or deferred? Indecision has a hidden cost. What critical choice have you delayed for months? In emerging markets like the Philippines, delay is often more damaging than a wrong call.
From Exit Strategy to Honest Reset
When the business owner later met for a discussion, the conversation transformed. He realized his exhaustion stemmed not from an unviable business, but from operating without clear metrics, allowing fundamentals to erode. The talk shifted from finding buyers to confronting the truth.
This scenario is increasingly common across Asia. Founders and CEOs face a convergence of geopolitical risk, financial tightening, and leadership fatigue. To address this, a CEO Leadership webinar is scheduled for January 24, 2026, at 10 a.m. It will focus on navigating the geopolitical and economic realities of 2026, emphasizing clarity, resilience, and disciplined decision-making.
The initiative includes a social component, with part of the proceeds directed to selected hospital wards. To book slots, contact Christine at +6317-3247216. More information is available through the WB Advisory website.
Sometimes, a business doesn't need an exit. It needs an honest reset. And that always begins with leadership willing to confront reality.
