Be entrepreneur or entrepreneur is not a simple task, rather it is full of challenges, challenges and of course risks that will make you doubt along the way. That said, one of the risks What we must avoid is falling into over-indebtedness.
Along these lines, the Mibanco Financial Office points out that when a person experiences a difficulty that impacts their ability to generate enough income to pay their debts, causing many problems, such as the possibility of seeing the growth of their business truncated or the closure definitive of it.
Here are four tips to avoid falling into over-indebtedness.
1. Budget according to reality
Every business needs advance planning of the economic activity in which it will embark, know and control its income and expenses; as well as the liquidity that will be available for the next campaigns, to mention a few. For this reason, planning is essential for a mype, which will allow you to have a clearer financial picture, facilitating the decision-making that will allow you to achieve your goals.
2. Do not fall behind on your debts
Avoid at all costs delaying in paying the installments of your loans or the maturities of your credit card. Not paying on time will generate interest, increasing the initial amount you required. For example, when you are late in paying a service (electricity, water, gas, among others) they usually cut it off for a while, causing problems and delays.
3. Save
It is an excellent alternative to solve unforeseen events or emergencies that usually happen suddenly, such as replenishing inventory at the last minute, fixing an imperfection in the premises, paying a fee, among others. Even if you see it on a personal side, it will give you an alternative to treat an illness or put it in a fund for your retirement. Undoubtedly one of the best practices, not only for you, but also for your family.
4. Reduce your expenses
Sometimes there are unnecessary expenses that need to be reduced or eliminated. At the same time, strategies must be implemented to increase sales to obtain more income, allowing you to pay the debts you have. Don’t look for another loan to pay for one you already have.
In general, it is important to take these tips into account so that your path as an entrepreneur is easier. Keep in mind that borrowing is not wrong, what is wrong is not having the ability to pay debts.
“You have to be informed, have your feet on the ground and know your debt capacity. In this way, you will be able to have a better financial planning”he asserted.
