Do you feel like your business is sinking in the deep, dark depths of debt? When things start to become difficult, it can be tempting to bury your head in the sand and not think about your debt, but that is a sure-fire way to kill your business in the long run.
To take action today and make sure your business is financially sound, our tips will help you find a way to get back on track with some easy steps. Make sure to visit and subscribe to Women for the Culture for more empowering content like this!
● Review your business plan. Your business plan should be a reflection of everything that you are spending your time on. It contains the strategy you want to follow to grow and what you need to do to get there, as well as the potential pitfalls. It should also include a detailed budget of your expenses that you can track against your actuals. So if something doesn’t seem to be working for you, it might be time to review your business plan and make sure it’s still relevant and realistic. And if you don’t have one, make sure that you spend time creating one now.
● Review your debt. Do a detailed inventory of all of your debt, whether it’s money that you owe to banks, investors, or even family and friends. Consolidate the debt if you can to access better interest rates, and negotiate a realistic payment plan with creditors to achieve it.
● Turn up your revenue. Make sure that your revenue is enough to cover your business expenses and growth needs. And it’s never too late to look at new revenue streams. Are there any complementary products or upsells that you can launch? Or maybe expand into a new market?
● Tweak your pricing. Many business owners set their prices up when they launch and never look at them again. But sometimes, even small changes in your pricing can make a big difference to your revenue. Make sure you have segmented your customers, reviewed competitive price points, and come up with a game plan that offers you the best return.
● Optimize your business and tax structure. So often, there are businesses that struggle to stay afloat without realizing that they are paying more taxes than they need to. Make sure that you set up the most efficient business structure for you. Aside from figuring out how to register a company name, also consider structuring as an LLC, which has minimal paperwork and offers reduced tax rates. And if you want to make sure you’re making the most of your tax deductions, it might be worth hiring a tax specialist or a financial advisor to walk you through the options.
● Stay on top of your finances. If you struggle with numbers, you’re not alone. But being clear on your finances will make sure that you spot problems early and can really help your business flourish. Make the most of the accounting software available today that makes it easy to keep your books up-to-date. And consider taking an online accounting degree if you really struggle with the figures. With all the quality options available today, it’s easier than ever to fit it into your schedule and will make you feel a lot more confident in your plans.
We hope you found these tips to be helpful and informative. If you need more information on how to get your business out of debt, remember to contact professional advisors that can help manage your long-term financial health and help put you on the road to success.
About Brittany Fisher|Financiallywell.info
After working more than two decades as a full-time Certified Public Accountant (CPA), I decided to compile all of the knowledge I’ve accumulated about taxes, personal finances, and general financial literacy into one place: I’m writing a book! I’m thrilled to announce that my first-ever book will be released in early 2018. I hope it will help people of all backgrounds, incomes, and walks of life find success in their financial journeys.My goal in launching this site is to take that one step further by offering my knowledge in the personal finance space to anyone who may benefit from it. Not only can I help others this way, but I can further add to my own knowledge and continue to learn. As a CPA, there is no better way to understand the domestic (and even global) financial environment than by talking to people, learning their experiences, and find out where there are disconnects in public knowledge of finances. Who knows? Maybe I can help fill in some of those gaps!
Getting comfortable with carrying some debt is a natural part of running a business. But as a result of the pandemic, many businesses are and will continue to carry too much debt — in amounts that could ultimately jeopardize their ability to stay open. For more information, email Brittany at brittany@financiallywell.info.