How to eradicate your company's debt?

For once, we are going to tackle a subject that is related to takeover, today, even if it concerns all business leaders - and future leaders -: the eradication of debt.

We are not talking here about the particular situation of a company in financial difficulty, or even in bankruptcy. No, we're only talking about the most classic cases: you've taken over a company that is healthy overall, but, as in 99% of companies, you have debts on your hands.

What should you do about it? Most managers "let it go", if you use the expression, assuming that debt is part of the life of a company. That's not our approach, and we'll tell you why... and how to remedy it.

The basic principles of good debt management:

These two principles that we recommend are as applicable to your personal finances as they are to your company's, for that matter! They are very simple:

• Choose profit above all else, and set aside
• Eradicate debts as quickly as possible.

This is not at all the usual way of doing things. Financial management is first and foremost human and when there is money available... we spend it. Companies as well as households! Corporations are "devourers", they use up all the money they have while reinvesting and getting into debt. However, with a few simple techniques and good habits, it is quite possible to reverse the trend. Yes, debt can - and must! - be paid off and yes, you can - and must! - use some of the profit generated by the business to pay you.

We are talking about healthy businesses that generate turnover and are not on the verge of bankruptcy. Some companies operate with a high level of debt to finance their WCR, for example, but this should only be temporary. Once your business is operating normally, it's up to you to make the right decisions.

Making the right decisions:

To make profit a choice, a decision, and not just a result, you have to think the opposite of what you normally do in accounting. A company talks about "net income" when you subtract its expenses from its profits. Start by deciding to automatically subtract a percentage of those profits that you transfer to another account: small to begin with, even 1%. The company will work exactly the same way with 99% as it does with 100%, and you will have started the process.

Next, create a top-down list of all your debts, from the lowest to the highest, regardless of the interest rate: you'll start by paying off the "smallest" one, using both what's stipulated in the loan agreement and the monthly profits. As soon as it is paid off, you then move on to the next one... etc. By doing so, you spend most of the company's profits on cleaning up its accounts, and you put money aside... smoothly and safely, simply by creating new habits.

It's called the snowball effect. Of course, you will continue to invest in the business, but only after your debts have been gradually paid off, and without forgetting the percentage of "set aside", which you can increase little by little.

You will always find solutions to make your company work with Euro /USD 95,000 rather than with 100,000 - this is just one example - because there are inevitably totally unnecessary or obsolete expenses in every company. And you'll win on all sides! So, remember: to start with, you use 99% of the profit to eradicate your debt, and you keep 1% that you set aside. Simple and effective...

A debt-free business is easier to sell and sells for more money! Think about it... :)

We wish you great deals! 

A debt-free business is easier to sell and sells for more money! Think about it… ??

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The following points will be covered:

- How can you own an oil well when you don't have a fortune to invest?

- How is it possible to make 5 times your investment in 10 years?

- How to receive dividends every quarter?

- Why Robert Kiyosaki owns 400 wells in the USA?

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- What are the difficulties and pitfalls to avoid to access this type of opportunity?

So don't wait too long if you want to take advantage of it…

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