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Five Tips for Retooling Your Business

February 10, 2012
URL: http://www.entrepreneur.com/article/222746

As a business debt solutions provider, I'm finding that there are many entrepreneurs whose companies survived the recession, but are still struggling to make the bottom line.

They never turned to the real solution, which is management by the numbers -- not by the heart or gut.

Maybe you used to give your customers 60 days to pay you, or paid a noisy creditor right away because you felt bad you couldn't pay. But you don't have that luxury any more.

You can no longer afford to be sentimental. Revenues are down, competition is fierce and thus profit is reduced. The business has been in a car wreck and needs some serious triage. It's time to get smart.

Related: Four Tips for Working Out Your Business Debts

Here are some steps you can take to retool your business post-recession:

Also, don't be afraid to also cut your losses if debt is too high. Do the workout and save the business. Get rid of debt and negotiate a sharp reduction of the personal guarantee with your lenders. Managing impossible debt service is a slow boat to self-destruction.

Related: 10 Rules for Surviving the Recession

Mechanic photo from Shutterstock.com