We are all looking fancy running a business, but most of us underestimate the amount of work that goes into business. Most people fall into business debts simply because they are too careless when spending money. However, there are many ways in which you can eliminate business debt. Karla Dennis, the CEO of Karla Dennis and Associates, Inc., believes that paying with money you have in the bank is one of the best ways in which small businesses can eliminate their business debt.
One of the things that Karla Dennis highly recommends to all small businesses is to have a viable revenue model. As a business owner, it is crucial for you to have a viable service or product that clients or customers are going to want month after month and year over year. That isbecause your business can in no way stay firm on the ground unless you have a realistic plan for the future. Karla says:
“It is one thing to make money for a season but something else to be able to sustain that revenue.”
The Best Strategy for Managing Business Tax Debt
Karla strongly believes in and recommends adopting a plan that is secure. She says:
“It’s easy to take a loan, but it’s very hard to know how to spend that loan such that it gives you a net profit.”
Karla suggests one should never take out a credit line or go into debt unless there is a secure and concrete plan. When you take out a loan, you need to have a detailed plan on how you are goingto use the money and how you will repay it. You must always have a “use of funds schedule”prior to taking out a loan. Karla says:
“If you take out a loan, never spend a dime unless you have a use of funds schedule where you have a complete and detailed strategy about how you are going to use the funds.”
Another thing that Karla always recommends is making sure you get more revenue and profit out of the loan you take so that you can grow your business. If you are not 100% sure about that, donot take the loan, that is her simple and concise advice to everyone.
The Best Strategy for Avoiding Business Debt
If you want to avoid business debt in the first place, Karla recommends that you operate based on a spending plan or a monthly budget. According to Karla, this strategy has two benefits:
For Karla, the most important thing startups must do to ensure that the day-to-day operating costs of maintaining the business do not require additional capital by way of debt. However, if you do need a loan, you should always make sure that it is spent on something that can give you a net profit and improve your company, such as purchasing necessary new equipment. The point is, Karla says, every business owner’s main responsibility is to play an active role in driving business revenue and sales. Every month you should have revenue projections and take the necessary steps to drive the revenue so the cash flow continues to come in as required for yourbusiness.
How Can Karla Dennis and Associates, Inc. help You?
Karla Dennis and Associates Inc. helps businesses devise concrete spending strategies and gather revenue. If your business is in debt, Karla’s firm can help you retire the debt systematically over time by making timely payments. Karla’s firm will help you get rid of your business debt so that you still have money for daily operations and make some business savings! With the help of Karla and her team, your debt will decline systematically within no time.
