Arnon Dror is a very successful international businessman with over 20 years of experience in the world of Finance under his belt. He has the distinction of discharging the office of Vice-President in many credible global companies. These include Xerox, Creo Inc., Scitex, Kodak Creo Americas, and Presstek. Many of his colleagues say he has an impressive track record in the field of corporate restructuring. Many business officials are grateful for his services in converting their establishments into profit-making concerns. They also claim he also an expert in international taxation, cash flow management, business negotiation, and ERP integration. Today, he holds the post of Senior Operations Executive in Janus Technologies.
Arnon Dror – How can entrepreneurs break-free from the vicious cycle of mounting debts?
This financial expert explains start-up entrepreneurs are probably aware that operating a small business is never smooth sailing. These businessmen are likely to run into turbulent times when they experience a severe cash crunch. In such a situation, they may consider it prudent to take short-term loans from commercial banks. The financial assistance can help them to tide over their current difficulties. In the process, they end up accumulating debts. These proprietors should be able to generate enough revenue to pay off such obligations on time. This ensures they won’t face any serious problems. Otherwise, things are likely to go from bad to worst. This is something they want to avoid at all costs.
He further clarifies that incurring debts is part and parcel of entrepreneurship. Start-up owners can’t avoid borrowing money from the market when the need arises. However, they face a challenging task of repaying their obligations on time. If this is not the case, these businessmen start accumulating more debts than they can handle. Fortunately, there are ways in which they can reduce this burden. For this, they need to consider and implement the following two important tips:
- Analyze the budget
This is the first step entrepreneurs need to take to reduce their ever-mounting debt. They probably find they are overspending in certain areas of their businesses. These are the expenditures they need to cut down on. Only then can they stabilize their cash flow position. They need to allot how much money they are willing to spend on such expenses. They shouldn’t exceed such limits at any costs.
- Try debt consolidation
Start-up entrepreneurs could consider entering into negotiations with their lenders and creditors. These businessmen have one objective in mind when opting this course of action. This is to ask them to agree to a mutually acceptable debt consolidation agreement. Such an arrangement makes it easier for these proprietors to pay their dues to them.
Arnon Dror says accumulating huge debts can prove to be disastrous for entrepreneurs. The cash crunch can ruin their businesses. Fortunately, they can avoid such a situation by implementing the above two important steps. They won’t regret taking this decision. However, these proprietors may feel the task is beyond them. In such a case, they should hesitate to hire the services of a proficient financial expert. Only such a professional can give them the proper guidance they need.