Business debt – Save money and pay it back fast
It is important for you to save money in your business, especially if it is relatively new. Most small business owners go for debt financing when it comes to raising initial capital for their business, that is, they take loans from banks and other credit lending institutions. As a result of this there is always the constant tension that you have to repay your loan. If you spend lavishly in your business initially and aren’t able to garner enough profits then your debt levels will rise and ultimately you have to opt for debt settlement in order to get out of debt. Although debt settlement will reduce the amount of your outstanding business debt so that you can pay back your creditors at least some amount of the debt that you have borrowed, this is going to harm your credit. As a result of this drop in your credit score, it will be difficult for you to get new loans at suitable rates after debt settlement. Thus you can see it becomes a necessity for you to save money in your small business. Here are some ways in which you can save money in your small business.
1. Use local cable for advertising – The TV stations at local cable have quite reasonable advertising rates at various time slots throughout day and night. Although the prime time slots can be on the costlier side, you can use other time slots for reaching out to the potential house customers and expanding your business.
2. Start selling online – You can set up your online store to expand your business as a lot of customers can be reached through the Internet. However, if you think buying a domain and setting up an online store would cost you more than what you want currently you can start selling your items on eBay and other online auction websites. You can also get a professional storefront for a considerably low monthly fee.
3. Strike a suite deal – Don’t make the mistake of thinking that you need to run your office from an executive suite in order to benefit from its services. These suites can cost a lot if you take them even on rent thus you can get a suite deal for yourself. There are many home based entrepreneurs who take advantage of many executive suite needs such as access to a private mailbox and a receptionist to answer calls or forward them to their home office through such deals.
4. Buy second hand products for your office – There are a number of products that can be used second hand, especially the furniture and furnishings of the office area. You can even use some machinery or capital goods that are second hand but in good working condition.
5. Use free software- Initially when you have started your business you can use various software by downloading their trial versions which can last you for three months or more. You can get such trial versions or free downloads even in the website of the manufacturer.
6. Save money on insurance – When you are looking for several insurance related to your business, you can check with your trade association. Usually these associations offer group insurance at competitive rates. Maybe you have to tie up with some other business, but if it saves you cost it shouldn’t be much of a problem.
Thus you can see that the above methods can help you save considerable amount of money in your business. you can use this money to pay back your initial debts and stabilize your business.