This post will reveal:
- How to Pay off debt as a small business owner
- How much debt does the average small business have?
- 3 tips you can do right now to help with your debt relief for small business
It’s easy to pay off your debt when you have a 9-to-5, and your money is coming in every two weeks guaranteed. So, it is easy to plan your life around that and to plan your debt payoff plan, around this sum of money. Because it is guaranteed money coming in, so you’re like I have extra spare money to put towards my debt, let me use the debt snowball, it is easy but when you’re a small business owner it’s a lot harder. Especially when you are just starting off, it is tough because you have to try to use the money to live, use the money to put back into your business, use money to pay taxes and use money to put towards your debt.
Today, I wanted to share three tips to help small business owners who may be struggling with debt, about how to manage your debt better as a small business owner.
I am Candace Latham. I help small business owners look good and market on-line, over at my company The Latham Agency.
The average U.S small business owner has $195,000 worth of debt according to a 2016 experience study. That’s from 2016, I haven’t seen anything from recently, but even 2016 $195,000 worth of debt, it is a lot of debt to carry, There are three tips to help small business owners who may be struggling with debt:
#1 Analyze exactly where you are, and look at how much debt you actually have. I think that’s the first step is just realizing where am I, how much debt do I have, where is this debt coming from, what’s the interest rate, and once you understand that then at least how much you have, and how much you have to pay off.
#2 As a business owner, it might be time to like cut down some expenses because there’s a lot of times that we’re just like signing up for things, and we’re paying for programs and services. But it might not really be benefiting us, it might not be actually helping us grow our business, helping us generate revenue in our business. So, it might be time to cut back, especially if you’re just starting off, maybe when it comes to your email, maybe you don’t need convert kit.
Maybe you don’t need Aweber, maybe you just start off using Mail Chimp, maybe that’s where you start, I think there’s nothing wrong with just starting where you are, and then working your way up as you generate more revenue into your business. I think that’s a very wise decision to make. Realizing that, it is okay to just start small and then grow, and then you can get all the fancy tools, once your business is actually in a better place generating more revenue.
It just forces you have to be a little bit scrappy in the beginning, so maybe instead of building, if you have a course that you’re paying, instead of paying a monthly subscription fee for up the big courses, like the big course platforms like Teachable or Thinkific. You have to brainstorm ideas to how can you do this using less money. You want to make sure your course is even valid, that people even want to pay you money before you start paying $50, $60,$ 70 dollars a month for this course platform.
Then you’re shelling out this money, but you’re not actually making money, people aren’t buying your course. I think that maybe you first start off doing zoom videos, maybe you do zoom, you have some beta people coming in, you get some testimonials, you start selling it that way, and then you go for the big dogs (bigger course platforms). Now you can spend the 50, 60, $70 a month because you actually have no, it is a proven thing that’s gonna generate you revenue.
#3 It may be time to raise your rates. When you’re a small business owner, it is all about how your packaging things, and how you’re communicating your products and services into the world. You have to up your fees. I think that is kind of the fastest way to generate more revenue is to charge more, is to rephrase your packaging, is to offer your product/service and frame it in a way that really is showing that it is gonna solve the person’s problem, and offer that value that your product is a solution that they need.
If you need any branding, marketing, or strategy when it comes to your brand, make sure you check out my services at The Latham Agency. I am now offering brand strategy calls, so you can book me, and we’ll have a 90-minute session to chat more about your business, your goals, and just getting you some more clarity in direction of where you want to go when it comes to your business.
I would love to just sit down and chat with you.
Speaking of tracking your taxes and sending invoices to clients and charging more. I actually use QuickBooks, and I am gonna leave my affiliate link if you are interested in signing up for QuickBooks It is super easy to use, it helps me keep track of what I am spending in my business, it helps me keep track of what business tools I am actually spending money on.
It helps me send invoices to my clients, and it helps me keep track of my taxes. It is a great tool to have, it is definitely like a tool that you need to have in your business keeping track of what’s going on, what’s going out, and of course invoicing. If you’re interested, I am gonna leave the link for that. Those are my three tips for you if you are a small business owner dealing with debt.
I hope you enjoyed those three tips that I gave you today, again if you are not on my email list. Make sure you guys are signed up below!