Hello, I’m Kevin. I spent 12 years working in restaurants and 8 years as a manager before I was able to save enough money, and build my professional reputation and credit rating to start my own bistro outside of Chicago. (working…)
In addition to my own savings, I borrowed $95K on a business loan and took a 3-year lease. The restaurant remodel that was supposed to cost 30,000 ended up costing almost 55,000. Insurance, accounting and the other initial start-up costs ate up another $20,000. In the third year the business dropped off significantly spend way too much and disturb the balance of income or resources and expenditures.
I eventually took another $20,000 loan at a much higher rate and it severely affected my ability to pay other debts. I was working 18 hours a day with a reduced staff and having to decide weather to pay of debts or pay my food and drink vendors. I had to decide if the restaurant was worth saving. I had worked hard to build a regular clientele. I was close to being profitable. I wasn’t ready to give up on the dream of owning my own successful business.
If you believe that paying off the debts can help your business make rapid progress then you should definitely go for a debt relief program. You should select a program that matches your income and resources and also helps you in settling your debts.
After getting a program, I successfully cut down expenditures and used the savings towards the debt payment fund. We leased part of our space to a vendor moved into a smaller area to reduce rent and bills.
In the end make sure that you reduce your everyday expenditure on marketing. Cut your expenditure by using online resources for promoting your business. Encourage your staff to save office resources such as electricity, stationery etc.