Mike Giannulis every business witness’s business debt at one point in time! It provides the option to finance the business requirements, expand service offerings, and buy more items. However, business debt has its dark side. After a while, a business house or a company might find the debt overwhelming. When your business doesn’t cater to the sales projections, the debt can move out of line and start to pull your business down. Is your business debt becoming challenging? If yes, it’s best to stop it right at the source to save your business.
Mike Giannulis’s three tactics to get out of business debt
Seeking business debt relief is an excellent way to walk towards a debt-free business. Mike Giannulis, an expert entrepreneur who studies and takes a keen interest in business finance management and business continuity, suggests three tactics.
- Maximize the revenue
Companies require cash to pay away the debts! And to get more money, you have to increase the revenue. Make use of all the ways to maximize business revenue. Set up promotions to create an interest in the customers. You can have a discount sale and also share coupons. Business promotions can motivate people to purchase more from your company.
It would be best if you also increase your costs. Check the margins, and when you have reduced margins, go and improve them. The increasing cost might make you lose a few customers. However, if you up the product/service quality, you will gain and invite more customers. Also, you might think of freeing up a part of the business inventory
2. Try and prioritize the debt
Prioritize the debts that you should pay first and find out how to go about it. When you don’t pay the critical debts, it might destroy your business. It would be best if you considered the debts that will impact business relationships. It will make you lose out on essential vendors and ruin your scope to do business with them in the future.
As you prioritize debts make sure to consider the penalties and interest rates. Take time to pay all the loans which have increased penalties and interest rates associated with it. Focus on any business collateral that you can lose out on, just in case there’s a loan default. There is no perfect way to prioritize the debt. Business owners need to weigh and assess the methods and decide better
3. Minimize expenses
If your business debt is less, chances are you are spending on necessary things. However, if you have a tremendous amount of business debt, then there might be a problem. You can minimize the spending if you make a better plan. During a crisis time, it is essential to assess your business plan and streamline your budget. You might find that things you are investing in, you can do without it. Cutting on business costs can happen in many ways. You can either cut down on a considerable investment or make multiple cuts.
Several business houses and organizations are often opt-in for debt consolidation loans to gradually move out of business debt. However, each business requirement varies. It would be best if you chose the tactic that works best for you.