Many people that will claim to know a lot of things about businesses. If you happen to meet any of these, and in the during their lecture about startups and business management, they do not tell you about how crucial the concept of loan and debt management is to business startups, run away from them. When you succeed in making your business debt free, you will see your business blossom.
You have to start by making sure you settle all the existing loans and interests first. The best way to achieve this is to sort these according to the volume of the interest to be paid and the amount for monthly payment. For all your business credit cards, business loans and other lines of credit, you need to make a list. In this list, prioritize the ones that you should tackle first and those that come after. This way, you can repay all the loans within 12 months of starting the business.
Cut the Cost of Running the Business
This should come after you must have taken are of all the existing loans. Start by eliminating everything that is not a need. Sell off those office supplies and equipment that are not imperative. You can even sell off the brand new equipment in your possession and get fairly used ones or get them on lease when you need them. The little money you save will go a long way. You may also have to downsize. This will include getting a smaller office space with a reduced rent and utility cost. You can choose a co-working space too. You can also reduce the number of employees you have, employ people on part time basis or share employees for maximum efficiency and reduced cost.
Work On Making More Sales
Of course, boosting sales should be the priority of any business man as posted in www.debtfreelife.co.uk. But when you have something driving you in this direction, it would be an added force. When you have prioritized your debts, how to repay them will be your concern, and you can only achieve this when you boost sales. Start customer rewards or loyalty plans, use the social media to market goods, present bonuses and promotional offers, offer discounts and many others. With these, you sell more.
You should also manage old debts well. For those debts you think you can’t repay in full, use consolidation or refinancing on them. Put different loans together into a new single loan and also change some from variable to fixed loans. These will help you.