Managing Your Debt: It is Really a Waste of Your Time

I see it all the time, small business owners, trapped in a down cycle, with debt eating up all their cash flow and all their time is spent managing the debt, juggling cash flow, talking to or avoiding the bank, their creditors, whomever they owe, being very busy and are they succeeding? Are you succeeding at managing your debt?

Great, a one way ticket to a long vacation, when the debt finally eats you up, and shuts you down.

It may seem like the responsible thing to do, it may feel as though you must do this to survive, but in all reality, this is a major misconception, a trap many fall into which will end up in disaster.

It's simple, managing your debt is an allusion. What you need to be doing and the only plan that will work, the only way to really manage your debt is by managing growth and development, only revenue will manage your debt. Only debt reduction will work, either way, the major requirement is opposite managing your debt, it is managing your business, creating cash, reducing overhead, working out debt, but not managing it, Debt is the enemy. It must be eliminated by either additional revenue or a debt workout but NOT by managing it.

In fact, if all the time spent by small business owners managing their debt, was applied to building revenues, it is likely that real progress would be made.

The problem is the creditors are relentless, and demand your attention and time. They have perceived power so you spend your time talking to them instead of developing revenues or executing a plan to eliminate debt. The results are your debts are managed, whatever that really means, and your business is allowed to limp along on its own, mismanaged and not developing.

The answer to this is obvious. First, stop believing that managing your debt provides any real answers, it does not. In fact, all you're really doing is babysitting your debt, massaging it, but not resolving it. Second, you must focus on building revenues that is a priority, and please consider hiring someone to handle your workouts and debt reduction, that works, and frees you to concentrate on your business where your expertise is and where the payback comes.

Stop kidding yourself, managing your debt is an excuse for wasting your time. It may feel as though you are performing important functions, being responsible and doing the right thing, but it is an illusion. You are only wasting precious time, getting nowhere.

Stop managing your debt; it is a waste of time. Start managing your business and hire a specialist who will work out your debt, reducing it to affordable and manageable obligations, and focus your time on growth and development. This works.