Guest post by Brittany Fisher of financiallywell.info
So, your business is going through the wringer. Your financial circumstances are untenable. Perhaps you’re in the early stages of accumulating substantial debt, approaching bankruptcy, or on the verge of losing your company altogether.
There aren’t many worse feelings than being in debt, especially when it’s business debt. Fortunately, however, all hope may not be lost. If you take action now and come up with realistic strategies, you can right the ship and set your business on a path to future growth. VR Business Brokers of the Triangle want to share some practical tips for how you can get there:
Hire a Consultant
One of the first things to consider doing to improve your company’s financial situation is to bring in a consultant. We know, we’re talking about getting out of debt and then telling you to spend money on professional services! However, working with a financial or business consultant can quickly pay off. This type of professional will come at your situation with an objective perspective, help you strategize debt reduction, and walk you through the journey to financial health.
Strengthen Your Prospects
One thing that will help your business and improve your financial standing is to ensure that you have the knowledge and skills necessary to provide superb products and/or services, as well as effectively manage your company. If you haven’t done so already, consider pursuing an MBA to strengthen your abilities in accounting, marketing, strategic planning, human capital management, and other areas. By choosing an online program, you can gain plenty of flexibility to benefit your work-life balance.
Spend Time With Your Budget
One of the most common reasons for entrepreneurs and business owners accumulating substantial debt is the lack of a workable budget. If it’s been a while since you’ve revisited your budget, or if you’ve never created one, carve out some time to do it.
Your budget should include all of your fixed and variable expenses, and help you to identify all of your income sources. Ideally, you’ll use your budget to spur business growth, pay down debt, and leave room for unexpected costs.
This may sound like a simple tip, but it may be the hardest on the list to execute. After looking at your budget, figure out if there are any operating costs or excess expenditures that you don’t absolutely need.
For example, are you getting your money’s worth from those professional memberships? Do you even use the subscriptions you’re paying for? Figure out ways to reduce your costs, and it will arm you with more money to pay towards debt.
Ramp Up Revenue
If you want to expedite the process of reducing your business debt, determine how you can generate more cash. For instance, are there ways to diversify your offerings, such as adding a product or service? Can you expand your target market to reach more customers? Also, see if it’s time to raise prices; if it seems like a good idea, communicate with your existing customers about the increase beforehand.
Another option is to lower your prices in an effort to boost customer loyalty and sales. This can be done by marking down certain merchandise or offering discounts on services. If you go this route, make sure it’s only temporary, and be cognizant of not lowering prices so much that it will put your business in a more precarious situation.
Being in debt as a business owner is not a good feeling. If you want to change course and put your company in a better position for growth, consider the tips above. And keep researching other strategies that can help you eliminate (or at least manage) your debt and lay a solid foundation for maximizing opportunities ahead.
Would you like to read more helpful content or learn about how our brokerage services can benefit your entrepreneurial journey? Contact us today for a confidential conversation!
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