Make Debt Reduction a Team Sport

Coach being carried off the fieldBusiness burdens don’t have to be tackled alone. Sometimes you need a helping hand. Overcoming challenges like debt can be a overwhelming task, but you might have more help that you realize. Use your ASSETS to help you take aligned action. Allow what you HAVE, not the worry of what you owe, to guide you where you want to be.

I recently attended a company meeting where the president hit all the right notes with his team members with financial transparency. The president of the company opened with a story about their history, a frank assessment of their current place in the market and an exciting vision for the future. Then, he laid out upcoming initiatives and opportunities for growth. He shared the divisions that were in trouble and a tough time frame for getting things turned around.

Next, he introduced the Budget. At that point, several different team members from all divisions of the business shared the numbers behind the numbers for Sales, Cost of Goods, Expenses, Profit and debt reduction. Actual vs. Budgeted for last year and the updated Budget for 2013. They went into great detail about the Sales and Expenses, and opened the floor up for questions. Every employee of the company was in attendance. I was impressed with their financial savvy and willingness to question and share. The energy was upbeat, open and – happy to say it – FUN!

Then, the president stepped back in and said, “This is our goal for debt reduction for 2013. We’ve laid out how we can make it happen. As we put this debt to bed, we open the door for profit sharing for 2014. We can use those disciplined muscles to create a Company Wide game for Sales and Profitability. Let’s get this handled so we can move on to Profit Sharing for next year.” I was pleased that the Profit Sharing idea he had in mind was simple and conservative. But first things first. This year, they will pay the debt amount down.

That is how you convert debt into wealth. It starts with systems and discipline. The magic comes when you realize it takes a team to make it happen…and the team deserves a piece of the win.

How about you? What has to go so that you can grow?

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Ellen Rohr, The Plumber's Wife Turned Business Makeover Expert teaches business basics. Ellen specializes in helping business owners put simple business plans together. She teaches them how to make more money and how to stay focused and profitable. Ellen makes ordinarily dry-as-dust business planning powerful, easy and fun. You can find Ellen on Facebook, Google+, or visit the contact us page.

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About Ellen Rohr

Ellen Rohr, The Plumber's Wife Turned Business Makeover Expert teaches business basics. Ellen specializes in helping business owners put simple business plans together. She teaches them how to make more money and how to stay focused and profitable. Ellen makes ordinarily dry-as-dust business planning powerful, easy and fun. You can find Ellen on Facebook, Google+, or visit the contact us page.
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