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Guest Post: Grow Your Long-Term Financial Health

Guest Post from Across the Pond: Get your business out of debt and grow your long-term financial  health – by Ted James

 

Vibrant business ecosystems, disruptive technologies, and global competition have created a perfect storm for American businesses. According to the SBA (Small Business Administration), an estimated 50 percent of small businesses don’t make it past their fifth year.

To succeed in this environment, businesses need to adopt new strategies and build stronger financial foundations. Fortunately, there are plenty of small business ideas that can help entrepreneurs get out of debt, increase revenue, and develop a healthy cash flow for the future.

 

First Things First: Create a Budget

 

Without a budget, you have no way of determining where your money goes every month. You need a complete, concise, and accurate system for managing your expenses, and a budget will provide you with this data.

From there, you can work towards reducing your debt. To achieve this successfully, you need to start prioritizing your spending. Once you have determined what bills and expenses are essential, you can start cutting things that you don’t need or can do without.
If you need help budgeting, seek out an accountant or a financial coach. Their expertise can provide the guidance and direction you need to sort out your business expenses.

 

Offset Business Debts With Personal Loans

 

When you run a small business, it’s easy to get caught up in the day-to-day operations of the company. That’s why it’s important to stay focused on the future as much as possible.

If your company is taking on too much debt, personal loans are a great way to handle these types of business debts. They can help you alleviate some of the financial pressure you’re feeling.

Keep in mind, though, that a personal loan is a short-term, high-interest loan that you obtain from a bank, credit union, or another lender. While personal loans are typically used to fund personal spending, they can also be used to fund small business expenses.

For example, if you want to purchase inventory or equipment but your business’ finances are tight, a personal loan may be a good option.
It’s true that you will be paying back more for the loan in the long run, which may seem counterproductive for long-term financial health. But if used for the right purposes, you can use the loan to strengthen your business, which can help increase your bottom line.

 

Embrace Data-Based Decision Making

 

The best way to make informed business decisions is to embrace data-based decision-making. This will allow you to avoid making costly mistakes while hiring the right people and diversifying your business.

 

Convert Your Business to an LLC

 

Converting your business to an LLC offers your business several benefits, including the ability to protect your valuable assets, secure future capital investment, and operate with legal impunity.

Without an LLC, you will be personally liable for any and all debts incurred by your business. Converting to an LLC offers your business legal protection and a shield from personal liability.

But before you make the decision to convert, consider consulting with an LLC formation service. More affordable than expensive lawyers, these services handle the legwork for you so that you can focus on your business endeavors.

 

Make a Habit out of Investing

 

One of the best ways to get your business out of debt is to start investing. This is because it’s one of the quickest ways to make your money work for you. By contributing to an investment plan that’s approved by the government, you’re benefiting from the tax breaks that come with it.

 

Contact Ted here >

 

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