For Canadian business owners, falling into debt can be a discouraging and stressful experience. But if you fear that you’re losing your business and won’t be able to get over your debt, there are many solutions to keep your business afloat.
If you have business debt, the worst thing you can do is put off dealing with it: here are just a few ways to identify the issues you’re encountering, get your business out of debt, and get back onto a good financial standing.
Increase Your Income
It may seem obvious, but the first step to reducing business debt is by increasing your income. If possible, you should add products or services that would be beneficial to your customers. You can also reach prospective customers by utilizing targeted marketing. When you target what your consumers are looking for, you can better determine what products you should be selling.
You can also raise your prices, but only to the degree where you maintain your sales — and you must let customers know before you do so.
On the other hand, you could lower your prices through discounts and sales. To take this strategy to the next level, if you have a loyal customer base, you could offer them exclusive discounts. You should be mindful, however, of not dropping prices too much: the strategy should be to sell more to your customers, or to upsell to them through incentives or bundles.
Cutting Costs
Expenses can add up quickly for any business. If there are ways to cut costs, you should determine how you can go about doing so. One strategic way to cut costs is by selling any supplies or equipment you are no longer using. You can also share costs with other companies who are running similar businesses; if you are located in the same office, you could share internet services.
Some Canadian-based businesses consider leasing out part of their office, or even relocating to an office with lower utilities and rent. In today’s working climate, many companies also switch to working remotely as a convenient and money-saving option. Since there are many collaborative apps like Slack that allows you to communicate with your team, many people find working remotely to be appealing.
However, many businesses may not want to sacrifice their workspace as they can feel more productive and enjoy their current office environment. One way that companies cover their office’s rent is through professional business funding solutions in Canada. Small business funding solutions ensure that your business’ ongoing development is supported in a flexible and convenient way. When you implement a short-term business loan, you can rest assured that you’ll be able to make payments for your office’s rent.
Collect Payments Owed
You can also check your records and determine if any customers owe money and collect it from them.
One way to obtain the money without being too aggressive about it is by offering your customers a discount for paying their fees upfront. If you have customers on a long-term payment plan, you can revise terms to collect your money by shortening the term times. You can even start to charge a late-payment penalty as a way to receive money owed from unpaid invoices.
If you find that your business is acquiring too much debt, there’s no need to panic. There are various solutions that can help your company save money and ensure that you won’t sink further into debt.
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