Building your author brand is a part of launching your author business. It’s all too easy to fall into debt when you’re getting your author business off the ground. After all, you have lots of startup costs to cover and very little revenue coming in. By implementing strategies to reduce your expenses while increasing your profits, you can pay off your debts and stay solvent. With contributions from Ann Writes Inspiration, you’ll be able to scale your business with your content strategy! Here’s how to start tackling your business debt.
Seek Professional Guidance
Don’t overlook the value of professional insight when it comes to paying off your business debts. New business owners have a lot to learn, so turning to an expert never hurts. Fundera recommends hiring a financial advisor who is a fiduciary, meaning they are legally obligated to put your interests first. You could also hire a business consultant for advice on new initiatives to grow sustainably.
Create a Strict Budget
Whether you’re paying down business or personal debt, sticking to a budget is a must. Create a budget outlining all of your expenses as well as your estimated profits for the upcoming months. Next, think about where you could cut down on your spending. Blogging Hub recommends going paperless, shifting to low-cost online marketing methods, and canceling subscriptions to any software programs you rarely use.
Consolidate Your Debts
It’s possible to consolidate business debts, and doing so can make it easier for you to pay what you owe. To start the process, you take out a new loan that accounts for all of the debt you’re hoping to consolidate. You then use this loan to pay off your other debts. Looking for a loan that offers a lower interest rate should be your top priority if you’re looking into debt consolidation.
In order to qualify for a debt consolidation loan, you will need to meet with an underwriting team, who will assess your credit score and your financial documents. This approach to paying down debt can actually help to boost your credit score and simplify your payments.
Focus on Scaling
Can you expand your business, even if you’re cutting back on your expenses and investing your profits into paying off debt? Yes! The key is focusing on scaling rather than simply growing. “Scaling” means increasing your sales without spending more money by focusing on budget-friendly sales and marketing tactics and increasing the efficiency of your internal operations.
Scaling doesn’t have to be complicated, either. By standardizing and automating key business processes, capitalizing on the unique qualities that make your company stand out, and focusing on customer retention strategies, you can begin to bring in higher profits while keeping your budget under control.
Sharpen Your Business Skills
Once you’ve paid down your debt, you might be wondering what you can do to ensure a better future for your business. Now that your company is financially stable, you may want to consider going back to school to further your education. For instance, in order to balance coursework with your responsibilities as a business owner and family commitments, you could enroll in an online MBA program. You’ll learn about everything from accounting and strategic planning to corporate finance and human capital management! With the right program, you’ll gain skills and tools that will allow your business to thrive.
If you’re struggling with business debt, you might be concerned about your company’s viability. By coming up with a concrete plan to pay off your debt, you’ll be able to keep your business afloat. Soon, you’ll be taking strides towards your other business goals!
Brittany Fisher has spent more than 20 years as a CPA. She runs her own site, Financiallywell.info where she shares her knowledge about taxes, personal finance and general financial literacy hoping to help anyone who may benefit from it
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