Guest post by Brittany Fisher at financiallywell.info
Debt: Everyone has it but no one likes to talk about it — especially when their business is in debt and that debt is starting to cause major stress and headaches. But in truth, the first rule of getting your business out of debt is to talk about it and to be honest about it. From there, you can use these expert-backed finance and business tips from Calkins Law Firm to resolve your debt issues and get your business back on the path to success.
Beef Up Your Business Knowledge
You don’t necessarily need a degree to run a successful business, but having one certainly doesn’t hurt. For example, if you were to enroll in an online MBA program, you could pick up the skills and know-how you need to get your business out of debt and avoid future problems. Those skills include, but are not limited to, financial management, accounting, marketing, and more.
Financial management is especially key for alleviating debt, and earning an MBA will give you the tools you need to get it right for your business. Of course, you may be concerned about costs but online programs tend to be less expensive and you may qualify for financial aid.
Get Professional Help With Your Finances
Understanding the basics when it comes to financial management and accounting is essential for any business owner. Even so, finances can be tricky to master on your own — so can figuring out the best options for getting rid of debt and getting your business back on track for success.
Separate Your Bad Debt vs. Good Debt
When you have a mountain of debt, this tip is key. You may be tempted to throw all of your resources at every single debt you have, but the thing is that you actually need some debt in order to maintain good financial health. That debt is what’s known as “good debt.”
How can you tell the difference between “good” and “bad” debt? It’s actually pretty simple. Debt is considered good or beneficial when that debt:
● Helps to increase the value or net worth of yourself or your business.
● Is low-interest debt that will not cost you too much to pay over time.
On the other hand, bad debt tends to come with higher interest rates and makes achieving financial freedom difficult. It should also be noted that too much of any sort of debt is never a positive. For businesses, calculating your debt-to-assets ratio is also essential.
Put Your Business Above Your Pride
Honestly, this tip could be at the top of the list. That’s because realizing your business is in debt and in trouble, as a result, can carry a certain amount of shame. Embarrassment and shame over financial issues can keep many folks from reaching out for the extra support they need, which can cause them even more stress, anxiety, and financial strife.
The first thing to realize is that most individuals and nearly all businesses have some level of debt. They may not talk about it, but even successful people have had experiences with debt. The next step is to realize that no good will come from ignoring debt. You need to be able to set your pride aside to successfully negotiate with creditors and, ultimately, save your business.
Debt may be a four-letter word, but that doesn’t mean you should avoid using it or talking about it. Instead of focusing on how overwhelming your debt is, try focusing on practical ways to reduce it and changing the behaviors that caused it in the first place.
If you decide it’s in your best interest to sell your business, connect with Calkins Law Firm. We have worked with hundreds of clients to successfully sell their companies, and we’re confident we can guide you through this process. For more information, reach out for a free consultation.
Photo Credit: Pexels
Debt may be a four-letter word, but that doesn’t mean you should avoid using it or talking about it.
The options for outsourcing are almost limitless. Whether you need help with your accounting, marketing, or customer service needs, there’s likely an expert out there who can do the job better and more efficiently than you ever could on your own.