How to avoid debt as a small business (part 1)
- Riona Boodram
- Sep 30, 2022
- 1 min read
1. Cut unnecessary costs
Firstly, it is important to identify the sectors of your business that got you into debt. Once these areas have been identified, it’ll be easier to implement a stratergy. There are many ways to cut down business costs:
➢ Outsourcing
Hiring new employee’s, investing in training, insurance, vacations etc. cost money. It is more cost effective for businesses to outsource labour from freelancers, who work for themselves and have their own portfolio and work remotely. This costs significantly less than on-site employee’s.
➢ Space efficiency
By improving space efficiency and productivity, it drastically reduces your costs. By maximizing every inch of your space, it could double your production rates.
➢ Energy efficient appliances
Going ‘green’ in your space, reduces your utility bills and therefore, prevents debt from accumulating. You can also contact your and request a free energy audit. They’ll send out an inspector to assess your space and outline ways you can cut costs.
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