According to a study released by Protection Agency, one third of the 17 million companies operating in Brazil are experiencing financial problems. Thinking about it, we have separated some tips for entrepreneurs who are trying to get out of debt and make the business prosper.
It’s time for your company to get out of debt
As with personal finance, organization and control are essential for your business to succeed. First of all you need to understand the financial scenario of your company. Raise all your costs, profits and needs and see where you are losing and where you are making money.
After that, it’s time to get rid of the losses. If a particular product of your company, for example, is making you lose money, or if the productivity of one of the teams is not going well, you need to reevaluate what is being done and reorganize the functioning of that to stop having losses and start to earn money. At times, companies give up a certain product because they understand that it is not profitable. See if this is your case.
Talk to your audience.Try to do periodic research and understand what makes your audience buy more of your brand or choose another. If your business is still small, you can invest in more informal research, during a conversation. Ask the sincere opinion of those who usually consume your service. This will help you to improve and reach an even larger audience.
Get rid of expensive debts
If your company has high interest debt, look for credit alternatives that can make the amount less. Negotiate, look for a company loan and see the options available in the market. If you are still in the beginning of the business and do not get credit for the company, try personal credit options. Just be sure to consider it as a company cost.
And the fifth tip is to never mix your personal accounts with your business accounts. Making this mistake can make your business sink, even if the idea is very good. Always separate what is spent personally and what is spent by the company. If you need to use your money to invest in the company, consider this as a business loan and make the ‘payment’ for it later.