Most Debt Reducing Plans target business debt. Yes, debts and expenses have to be slashed, but why should businesses be the main target?
I see many of my clients cancelling business related expenses, to bring “ overheads under control”. Killing the marketing budget, or reducing the telephone bill.Expenses that are business related could be you biggest mistake.
How are you going to generate more leads/cash, if you don’t market? If the business phone is barred your leads are also going to dry up.
Most debt ridden business owners go for the business, and reluctantly forgo their household luxuries. If a comparison had to be made betwwen household and small business debt, especially closely held companies or sole proprietorships, the household debts would invariably be higher.
Look at it this way; We set up businesses to improve our lives, the business helps in attaining that house, car, expensive clothes etc. When we fall into debt we turn our sights towards the business, not the high mortgage or car repayments( funded by the business).
Can we name one expensive item in the house that brings in money? Household expenses consume wealth, and Business expenses builds wealth.
Be careful when you work out your budgets. Don’t kill the goose that lays the golden egg..
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