How to Get Past Debt and Hit the Road to Business Success

Entrepreneurs dealing with business debt have several options to choose from when it comes to boosting their company’s financial health.

And this is something you should deal with as soon as possible so you can start focusing on making your company more profitable instead of putting all your energy into keeping your head above water.

Strategies that can help relieve you of excess debt also happen to align with many best practices of financial management, too. So while you work to eliminate debt, you are also mastering habits that will set you up for greater financial wellness, later on down the road.

Start with a budget overhaul

Some debt is normal and even healthy. But if you are deep in debt, clearly something is amiss. Sometimes this may be due to factors beyond your control such as illness, accidents, or having to close your business due to public health concerns.

But other times, excessive debt is a sign of inadequate financial planning, poor budgeting, or overspending.

Go over your business budget step by step with your accountant or a financial consultant to pinpoint where the problem might be. Are you paying more than you can afford in overhead?

Are customers not paying you on time? Is your marketing ineffective? Figure out where your money is going, and this will help you concoct a plan to slow the outflow.

See where you can cut expenses

Once you have gone over your budget and know just where your money is going, see whether any of these expenses can be whittled down or even eliminated entirely. Even small amounts can add up, so look at entries like payments for subscriptions or standing orders for products you don’t really need.

Figure out if you can eliminate any memberships you may be paying into, and determine which of your advertising campaigns might not be paying for themselves. It may even be possible to negotiate with suppliers and wholesalers to see if you can save money on bulk orders.

Try to boost your income.

If you’ve fallen into debt because of insufficient income, this should be a powerful incentive for figuring out how to make your business more profitable. Of course, if your income loss is due to extenuating circumstances, it may simply be a matter of getting back to business as usual but with added dedication and energy.

If business as usual wasn’t working for you, however, see what changes you can make to bring in more profits. Do you need to expand the digital face of your company or perhaps add digital products and services?

How can you update your products to appeal to the demands of your clientele right now? Other ways you may be able to get your hands on extra cash include selling unused products or surplus inventory or even raising your prices a little.

Reduce the amount you owe.

It might be possible for you to reduce or eliminate some of your debt by consolidating your different loans into one with a lower interest rate. A similar option might be to transfer your debt to a credit card with a low APR.

You may even be able to negotiate with lenders to see if they will be willing to lower your interest rates, especially if you have paid on time consistently.

Improve your financial management skills.

One valuable and sustainable way you can deal with debt now and aim for better outcomes in the future is to seek training and education that can help you oversee your finances more efficiently.

If you can fit it into your schedule, consider pursuing a business degree online to hone your existing skills or develop new ones. A degree in marketing, business administration, or accounting could provide you with the training and knowledge you need to take your business management to the next level.

It’s easy to get frustrated and second-guess yourself if you’re buried in debt with no clear solution in sight. This is why crafting a plan, or even several plans, for debt management, can be so empowering.

Take it step by step and you’ll find yourself recovering the sense of excitement of running your own business. If you are running your own business as a ghostwriter, Ghostwriters & Co can help you in your pursuit of increased sales and notable results. Get in touch!

About the author

After working more than two decades as a full-time Certified Public Accountant (CPA), Brittnay decided to compile all of the knowledge she accumulated about taxes, personal finances, and general financial literacy into one place: she’s wrote a book!

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. Visit Brittany at Financially Well today for more advice on money and budgeting