Last Updated on 26/05/2020 by Deepak Singla
When you are setting up a small business, it is quite possible that in your haste to ramp up the business operations, you max out your credit cards. You find that your cash flows cannot support both the business requirements and the monthly payments and soon you are deep in debt with collection agencies calling daily. Being in debt can be immensely stressful and it is very important to take concrete steps to get rid of it as fast as possible so that you can realize your ambition of operating a successful business and become a millionaire. Some practical tips on achieving financial freedom and becoming wealthy:
How to Become Debt-Free Quickly
Know how much you owe: The most basic step in becoming debt-free is to find out how much you owe your creditors. Make a list of all your dues along with the principal outstanding and the interest and penalties that have accumulated as well as the applicable APR. By doing this you will know which debts are the most expensive and need to be tackled first.
Stop borrowing more and find out how much surplus you can generate: You will never to be able to get rid of debt if you continue to take on more debt. Conduct a comprehensive budgeting exercise and find out how you are using your money. Take this opportunity to trim unnecessary expenses that are bleeding your business. Do everything possible to improve your cash flow. Talk to your suppliers and vendors about trimming costs and extending the credit period so that you can revive your business. Also, discuss with your main customers about speeding up the accounts receivable and if need be, encourage them to pay faster by offering them a discount.
Consolidate your debts: If you have used multiple credit cards to fund your business, you can be sure that the interest expense every month is really high. Find out if you are eligible for a balance transfer offer from a new card at zero percent interest because that can save you a pile in interest cost as you may be able to get the promo period for as long as 18 months. Otherwise, you can try for a debt consolidation loan with which, you can pay off all your expensive credit card dues and enjoy the luxury of monitoring only one loan and making only one monthly payment. If you have a good credit score, you should be able to get a very decent rate of interest that will substantially cut down your interest expense. Of course, if you find that the level of debt is above your head and there is no hope of being able to repay it, you can consider debt settlement using a reliable and reputed debt settlement company like Nationaldebtreliefprograms, however, your credit score will take a hit and affect your ability to access loan funds in the future.
How to Become a Millionaire in the Shortest-Possible Time
Assuming that you have managed to get rid of your debt using the strategies mentioned above, your next task is to put the past behind you and stride ahead to realize your ambition of becoming immensely wealthy. Some tips from successful entrepreneurs:
Ascertain your financial status: It is evident that if do not know where you stand, you cannot improve on it. A report by entrepreneur.com suggests that if you want to get immensely wealthy, the first step is to set everything down on paper so that your entire financial status is in front of you and then you can figure out how and where you can move it. Detailing your current earning and your expenses will enable you to make a financial plan that will act as stepping-stones to improving your net worth. Also, be sure to spell out your financial and personal goals.
Work on boosting your income: Now that you know your goals, you need to figure out how to achieve them. While cutting back on expenses is good, it surely is not the path to great riches so you need to work out how to increase your income. Take a close look at your current business and figure out how to increase your revenues by scaling up. Think about what you can do in the time it takes you to boost your business revenues significantly like contracting out extra capacity. Consider new streams of generating revenues from the existing business and also by using your personal resources. Taking up mentoring, consultancy jobs, or even teaching, as a side hustle can be useful. Move your business online to increase the size of your potential audience.
Acquire new skills and competencies: It is the hallmark of all successful entrepreneurs that they are forever keen to learn new things that could either help them to boost their current income or open up new opportunities of generating income. Go all out to attend courses, lectures, webinars, workshops, etc. to hone your existing skills or learn new skills. These are also opportunities for you to meet other entrepreneurs and professionals so that you can broaden your knowledge horizon. There are also a lot of online resources that you can use to improve the depth of your knowledge.
Actively seek out opportunities: You can be sure that you are not going to become rich doing the same thing daily. If you want to become a millionaire, you need to develop an insatiable hunger for capitalizing on opportunities. Since opportunities will not come knocking on your door, you have to be constantly on the lookout for them. Always try to build and elevate your personal brand so that other people think of you automatically when there is a lucrative opportunity.
To be successful and to become rich, you need to constantly be on the prowl for opportunities. Not all opportunities are the same; some increase your knowledge, some boost your profile, some provide valuable contact, while still others bring in the cash into the coffers. Just go ahead and chase your dreams and you will find that moving from underneath a mountain of debt to sitting on top of millions of dollars is easier than you could have ever imagined.