Las Pupusas 

When Rene Salas approached the Alaska Small Business Development Center, his restaurant had just experienced its second year of growth in revenues, but for some reason its cash position was moving in the wrong direction.

So Salas sought out an Alaska SBDC business advisor. Working together the two worked to form a clear picture of the company’s financial situation.

What they discovered was that by making some critical adjustments to the company’s debt structure – matching asset life to the appropriate debt term – they would be able to improve its cash position almost immediately.

With this plan in place, Salas was able to consolidate and restructure his debt, which freed up enough cash to invest in some minor improvements that would make the business attractive to a potential buyer.

In early 2010, that potential buyer literally walked through his front door: A Laotian family hoping to start a restaurant of their own.

“After just a few questions we came to an agreement, and they bought it right then and there”, Salas said.

And so ends the story of one restaurant and the beginning of another. As for Rene, he is back to scouting for his next business opportunity.

“Many thanks to the Alaska SBDC” Salas wrote recently. “Without their help I could have lost everything”.