4 Power Plays For Poor Business People


Starting a business is an exciting time until the bills start to mount. The sad thing is that it happens to pretty much every entrepreneur. Even Elon Musk had to deal with debt at some point in his fledgling career. The key is how you deal with the prospect of impending closure. If the bailiffs are at the door and ready to close you down, it’s easy not to think clearly. However, your reaction could be the difference between success and survival. 

These are the four power plays to use should your business get into financial trouble. 

Track Down Invoices

It doesn’t matter how much money the firm turns over as there will be bills which don’t get collected. Clients are sneaky and don’t want to pay, while the hassle of following up can appear too much. When the good times are aplenty, there is no reason to worry about a dozen unpaid invoices. When the company needs every penny, they are essential to your survival. If you have to, don’t be afraid to agree to a payment plan or escalate the case and take court action. If you need more time to crack the case, debtor factoring might be the answer. Whatever happens, don’t write off the debt as you will never see the money again.

Sell Debt 

Sometimes, being in debt isn’t a bad thing because other companies will take it off your hands. There is a lot of potential in unpaid invoices, and debt recovery firms are happy to offer a reasonable sum. It depends on the type of debt and how much the business owns. For those of you thinking “why should I sell it if it’s profitable?” think about the logistics. They have the resources and experience to recover debts and you don’t. Selling a debt is often a good deal for everyone involved other than the debtor. 

Get An Accountant 

The idea of spending money to make money never seems appealing when the firm is in the red. However, it is a useful power play because it’s a long-term strategy. As a financial novice, you have no idea where to place the money to exploit interest payments. You don’t know how to cut costs without impacting the business as a whole. There is a good chance you don’t have the first clue about tax contributions, either. Accountants do and they can help save money throughout the company with their expertise.

Declare Bankruptcy 

No entrepreneur wants to close down because it’s an admission of failure. Still, it’s better than having a terrible credit score and being personally liable for debts. Bankruptcy is a potential Godsend because it might wipe the slate clean by clearing unsecured debts. Any secured arrears will stay, but at least you will have breathing space. Your credit rating will take a hit, and that is inevitable. But, there are ways to build it back up again after the fact. 

Just because the business isn’t wealthy doesn’t mean there aren’t options. These four are only the beginning.





I hope you enjoyed this article about potential power plays for poor business people looking to prosper.

Interested in more articles about frugal finances?

Read My Posts:

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- Save Time & Money By Improving Efficiency

Published by Michael J Schiemer
Owner of Bootstrap Business
Money - Marketing - Motivation
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Mike Schiemer Builds Better Business

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