Ch. 06:

Ch. 06:
Impacts Of Debts On Business Budgets

Synopsis

It may be rather surprising to note that there are some debts that are considered “healthy” debts within the frame of a business budget. These may include debts incurred during the course of setting up the business which is normally looked upon as investments but is none the less debt incurring costs.

Debts

In the effort to keep these debts from becoming the focal point of the revenue earning desired there are ways to limit its impact. When deciding to start a business, the individual should take into account all the different aspects that the business would have to focus on, and all the relevant tools it would need to do so effectively and efficiently.

Once there is a clear outline of such needs then sourcing for these without creating huge impacts on the actual budget available for the business would be a good start.

Looking into possibilities of acquiring used supporting materials and tools, cheaper yet effective ways of advertising, working out of a smaller and less fancy environment, keeping overhead to a minimal, looking into tax reliefs and rebates are just some of the actions that can be taken.

All these should be able to contribute positively to keeping the initial start-up cost lower, thus providing a healthy cash flow that would allow the business entity to start off on a better footing.

If this is not possible based on the investments necessary to get the business going then other options need to be explored such as working the business entity to its optimum so that the investments will be justified and the debts incurred will not be considered a bad business tactic. Finding ways to maximize the business engine to produce the desired revenue at a much quicker pace will also eventually allow the debts to be cleared or brought to a minimum thus preventing it from eating into the profits made.