Monthly Archives: November 2013

How to Manage Debt To Not Falling Loss

hi-tech-business-communicationNot strange that the name was ordinary businessman in debt. Do not be ashamed to admit it. Debt can be a weapon in fact even for you to grow your business even to save your business.

But when you have debts, you should be able to manage your debt. Dealing with debt is not also mean dealing with the realm of law. There is a little list of major companies collapsed because in debt. You do not want to get on that list right.

Here’s a simple way to manage debt. By applying this method means you can at least maintain the quality of your business finances.

Depth calculation

Before you decide take debt into account first if you are indeed in need of debt. No amount of costs to be your responsibility and your ability to meet these costs. Compare the cost of the debt with your income plan. Perform calculations also include realistic as possible with all the risks of your business plan on the debt.

Inventory of all debts

One mistake that often become a boomerang for an entrepreneur is to underestimate the numbers of debt. Talk about managing debt means also calculate how the total amount of your debt. You also need to sort out with costly debt and debt for a small fee, consumer debt and productive debt.

Maximize the benefits of debt

Debt you take a course to benefit you, whether it’s just to buy your needs or to capitalize on a business plan. One is certainly not to the benefit of the debt is less than the cost of debt, this could be disastrous. If this is already happened, find a way to cover the debt, may sell assets, pay the new debt that is lighter or seek solutions to improve the benefits.

Always make sure you secure financial ratios

The debt ratio is 50% of assets and 30% of revenues. Make sure this figure continues to awake and not shifted to larger numbers. Immediately take further action when the numbers leads to a critical point.

Leading with Responsibility ala Lee Iococca

Lee-IacoccaA leader must accept responsibility for his actions. Under these difficult circumstances, the stakeholders in the company and the general public would expect to see directly in front of the leader they discuss and demonstrate responsibility.

When the American car giant Chrysler faced financial difficulties in the 1980s, the recovery was led by Lee Iococca who led the restructuring and massive savings, selling Chrysler-owned business that continues to lose money in Europe to Peugeot.

He also revitalized Chrysler product lineup and at a critical time successfully lobbied the US Congress to ensure that the loan will allow the company to stay afloat. Press ads first attempt to win the hearts of the public and government opinion to the plan loan guarantees under the headline, “Will America be better off without Chrysler?” The ad contains Iacocca signature.

Iacocca said, it wanted to show people that a new era has begun. According to him, the chief executive of a company that is going bankrupt have to convince people to declare the principal executive responsible for the company. And to show that “I’m really serious, I signed the line to mark that point.”

In the long term, said Iococca, it will be able to convey that there is a responsibility on Chrsyler. “By affixing my signature in the ad, we invite people to contact me about the complaint and question them. We announced that a large and complex company is now run by someone who put the name and reputation in the ad.”

While financial companies began to improve, Iacocca launched a consumer advertising campaign that raises itself, promoting the company’s products. The ads use the slogan “the Pride has returned” to show what is then a characteristic Iococca motto: “If you can find a better car, buy it.” Consumer confidence is rising rapidly to Chrysler.

A leader is responsible for everything that happens in the company. When things do not go as they should, the leader must show responsibility and present in front of the public through the media. Companies where there is no leader who can be held liable regarded as a company that does not have a leader and walked aimlessly. Nothing can replace the responsibility. When leaders managed to show themselves in companies, consumers and stakeholders put their trust back since witnessed a leader who appears, someone who bears responsibility for the whole range of the company.