Top 7 Ways To Get Your Company Out Of Debt Fast
By Christopher M. Knight
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- STOP the hemorrhage through better information. Don't allow your financial position to bleed to death, while you blindly don't even know you're going under. Get P&L's/Bal sheets and other economic indicators monthly, so you can take corrective action.
- THINK YOUR WAY OUT. The thinking that put you in debt, can not get you out of your current debt. Be outrageous and change your approach and change your actions, today...now. Go. get started.
- FOCUS on it. Put your current debt on paper, and put up a ticker with this headline: Destroy Debt. And then list your current Debt (you do know that number, right ;-) and list the 10 best ways or strategies you can use to get it to zero.
- IDENTIFY the top profit leaks, and plug the holes or sell them off, before you are forced to, by default or failure.
- INCREASE YOUR SALES: Every problem you have can be solved by raising your sales. Focusing on destroying debt is not enough; You must also focus on increasing your sales. How much more sales will you need, to end debt free in 12 months? Set your course for that goal.
- INCREASE YOUR POSITIVE CASH FLOW. Profit or not, business is a "live or die" by cash flow. If you have good profit, but negative cash flow, you will never get out of debt fast enough. Positive cash flow happens when sell something and get the money from your customer faster than you have to pay the cost of goods sold expenses. Make sense?
- IDENTIFY which debt is at the highest interest rate or includes huge penalties. Prioritizing your destroying of debt, by getting rid of credit card debt first, and any other high interest debt next.
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Article Submitted On: June 11, 1998