Tips to Worry Free Debt Management

Here are some worry-free debt management tips to guide you.

1. Formulate a budget plan and stick to it.

Money doesn’t grow on trees. Your business financial sources can easily deplete if you do not create a budget plan at all. Consider current financial position and cash flow before coming up with a budget allocation. Once done, do make sure to stick to it at all times. To prevent veering from your budget plan, consider putting contingencies to address emergencies.

2. Generate profit and loss accounts on a timely basis.

Regardless of your business size and portfolio, debt management should never prove to be a problem when your cash flow is managed on a timely basis. It is, in fact, critical that you have ready data and hands-on knowledge on what goes in and out of your financial aspect at any moment in time. With this, generating monthly profit and loss accounts can help a lot in micromanaging your cash flow.

3. Add technology to the equation.

To ease your burden, consider using accounting software to handle your cash flow and debt management. QuickBooks and KashFlow, for instance, are reliable accounting software programs that can easily keep track of the money coming in and money going out of the business coffers. This also helps save costs on employing a bookkeeper.

4. Consider outsourcing.

Do you know that outsourcing your financial management like accounting, debt collection, and so on is made even cheaper in terms of cost with outsourcing? Yes, outsourcing allows more financial freedom for your business. Your business can get to enjoy top-rated financial and accounting management services at a cost you can afford via licensed firms who hire the best in the industry. Security policy and data confidentiality should never be a problem. Third-party services like SiMar Inc. always sign confidentiality clauses before embarking on financial aspects like cash flow, accounting, and debt management to forge trust and confidence.

5. Spend where and when needed.

Business spending should be kept at a minimum level—at all times. Spending per se should be done where it is needed and at a proper time. We should never question operational spending, which directly affects productivity and the quality of products or services. Marketing and other aspects, however, can be improvised without sacrificing quality results.

6. Get ahead of forex.

One of the many challenges in debt management has something to do with a volatile foreign exchange. Any socio-economic turmoil here and there can easily affect the exchange rate, which could negatively impact your financial standing. Try to find forex expert services that offer money-saving ventures on transfer fees. Some third-party services like Moneycorp’s Forward provide clients a stable exchange rate of up to two years.

7. Consider a quick payment reward system.

Part of successful debt management is on motivating a client to pay up invoices due from them. If you want a more dynamic cash flow, consider offering incentives like discounts or rebates or freebies to those who regularly pay their dues on time or ahead of time.

8. Discourage late payments.

Late payment is one of the biggest challenges in debt management. So, the next time you outline terms and conditions, consider claiming interest on late payments. Stipulate a reasonable interest rate which is computed daily for each day of overdue payment. This helps to motivate your client to pay up on time and discourage bad debts. Just ensure that it’s legally binding.

9. Keep track of invoices.

Consider creating a time log of all outstanding invoices complete. There are various invoice billing and tracking software such as Netsuite, Freshbooks, and Cloudbooks available these days for you to easily check and verify. Put your energy on ticking off the largest amount first.

10. Keep abreast with company practices.

Be reminded that not all companies operate the same way you do. Some businesses require a statement and an invoice, a PR, or what-have-you for payments to be processed. Carefully define this with your client to ensure ease of debt management.

Every business that wants to secure its cash flow standing requires an in-depth debt management system in place. Get ahead of the competition and secure your financial plate. Take these worry-free debt management tips to mind and have fun counting plusses instead of losses.

Do you wish to improve your debt management system? Schedule a consultation with us. Follow us on Facebook and Twitter for updates and new trends in the market.

Here are some top tips to consider when you are starting your business:  

Dear First-Time Entrepreneur

Allison Todd, Operations & Digital Growth Strategist, explains that in order for first-timers to create a successful business they need to a plan for success. That plan includes these top to dos: (a) fine-tune the business plan, (b) assess the finances, (c) complete the business legal paperwork and (d) schedule some “pick your brain” sessions with the experts.  Oh and be sure to choose the best tools and systems to boost your business marketing strategies.

Identify What Makes Your Business Stand Out

Before you start all of your business planning, take some time to think about the business as a whole. Think about what sets your business apart from others. For instance, if you are planning to launch a coaching business, there are tons of coaches. How will your business stand out. The foundation of your business plan is your unique selling proposition. So, what’s yours? Your customers will remember how you differentiate from your market competition? It’s essential.

Describe the Business and Business Model

Once you have discovered your unique selling proposition, you will have a good understanding of your business niche. It’s important that you be able to share what your business is, how it serves its clients and what makes your business different from the rest. As you build your business, you will speak to many people.  Prepare yourself to be able to articulate your niche in various ways. This includes a proper business description and a business summary. The business summary will include both short-term & long-term business goals, the business structure, the business marketplace and more.  With all of your planning, continuously analyze your business model. 

Analyze the Market Conditions 

The business market dictates your business success. When testing your business idea, ask yourself if your business has a place in the market. Identify your target market and the the target audience. Get specific and outline your ideal customer. Why will your customers buy products and services from your business? Be detailed. Describe this person in detail and identify their pain points. Once you understand the market, create your action plan. Your action plan is the strategy. Define the steps that illustrate how to reach your target market, connect with your target market and convert.  

First Time Entrepreneur Teams & Their Roles

Part of a good business plan is knowing what type of business team you need. You should be able to identify when it is time to build or grow your team. The business growth and business income are good indicators. The secret to this is having an understanding of your finances. Outline your business team to include the roles and responsibilities. Who will be responsible for what aspects of your business? How will responsibilities and tasks be assigned to each team or each person? How will you manage those people and their tasks. Allison shares, “Knowing what you need in advance will ensure you identify when you need it while growing your business.”

Starting a new business can be overwhelming, with or without a plan. Contact SiMar to learn more about the business services that support your needs. You are creating business steps while building, executing, managing and growing. Understand that it’s not easy, but it’s definitely worth it! You will learn as you go and that’s ok. By all means, keep going. Make sure you ask for help when you need it. With a few simple tips & strategies, you can look forward to starting a growing new business.

For more tips and techniques, join our business community at position2profit.com.