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Activity Forums Q & A Small businesses and debt

  • Small businesses and debt

    updated 2 weeks, 3 days ago 0 Member · 1 Post
  • Christine

    Member
    October 26, 2019 at 11:47 am

    Bit of background on this: company is 4 years old, I was brought in in year 2 as COO with another guy as CTO each at 24.5% ownership,original founder owns 51%. Over the last 2 years, we have increased sales by 500% and doubled the size of our team. To do so we took on significant debt. My priority is to get rid of our debt. Operationally we can do it in the next year if we don’t increase our salaries and keep expenses where they are. My ultimate goal is to have a full month of expenses available in cash in case of a rainy day. This is where the problem is: the minute we get any amount of money, the original owners brain goes into spend mode: special events for the staff, declaring a ton of new expenses on the company like car allowances, unnecessary business trips, and just overall an attitude that being in debt is a normal thing and paying interest is a part of doing business. Am I wrong to have my goal? Is he correct that my strategy is probably too conservative and paying interest is a part of life? How do you all run your businesses when it comes to debt? – by hq overview ZacharyBall – –

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