Thursday, May 16, 2013

Debt - Get A Healthy Attitude Toward It

It is thrilling to help your business by taking a healthy look at debt. Often entrepreneurs are afraid of debt. This fear of debt can prevent entrepreneurs from growing their businesses as they should. However, once an entrepreneur has a healthy understanding of debt and its place in business, there is opportunity for growth. It is important to understand that every business has debt. Business debt includes all of the following items:
  • rent
  • employee,payroll and employee related taxes
  • supply costs
  • taxes
  • association and membership fees
  • website associated costs

debt, entrepreneurs, business, analysis, finances
photo credit: The Eggplant via photopin cc
A quick look at this list will show that almost every business has debt. Debt is commonly defined as a state of owing money. Most businesses have short-term debt. Like the items included in the list above. These are debts that are due to be paid off in a period of less than one year. Businesses may also have long-term debt which includes things such as loan payments, credit card payments and mortgage payments. Since the reality is that almost every business has debt, it is imperative that entrepreneurs get a healthy attitude toward debt rather than an adversarial one.
Debt need not be the enemy of business operations and entrepreneurs. In fact certain debt can be thought of as a good thing. For example, every day that an employee works, that employee is owed a debt by the business, a paycheck. It is good to have employees, to provide jobs and be part of helping the American economy to grow. Employee payroll associated debt can be thought of as good debt. This is not the type of debt that normally scares entrepreneurs.  The debt that normally scares entrepreneurs is loans. However, a loan is sometimes needed in order to finance items needed for business operations.
Before becoming indebted for any thing, large or small, it is important for an entrepreneur to look at several factors to make sure the business will be able to manage the debt. For example, a business that wants a loan to purchase new computer equipment should look at the following factors:
  • income
  • current expenses
  • cash flow
  • profit and loss statement
  • accounts payable
  • accounts receivable
  • purpose of the loan
  • Projected return to be had on loan funds
If after the analysis  is done it is determined that the company has the ability to repay the loan and the loan will benefit the company in a real and significant way, then the debt to purchase the computers can be considered good debt and probably should be taken. If however, the analysis shows that the company cannot afford to make the proposed loan payments or that the benefit to the company would be insignificant or non-existent, then the debt may be considered bad debt and probably should be avoided. What this brief analysis shows is that debt itself, simply by the nature of being debt is not a good or bad thing. It is simply a fact of operating business. Instead of being afraid of debt, start to realize that it is a part of business and on its own is neither good nor bad.

debt, entrepreneur, healthy attitude
Photo Credit: Janeane Davis Healthy Look at Debt
In conclusion, in order for a business to be healthy, an entrepreneur must get a healthy attitude and understanding of debt. An entrepreneur must learn to manage debt adequately, correctly and without fear. So, the question for you this thrilling day is, how to you control debt in your business?

Wednesday, May 1, 2013

Correct Attitude While Out of Work

It is wonderful to have the correct  and right mental attitude while you are out of work.  If the condition of the economy in America has taught us anything over the course of the past few years, it has taught us that jobs can disappear with no notice at all. As a result, you may find yourself unexpectedly out of work. One of the most important things you can do for yourself if you find yourself involuntarily out of work is get a correct mental attitude, the right mental attitude. It is important to have the correct aka right mental attitude because a bad mental attitude can lead to disastrous results. Let's examine some products of a bad mental attitude:
  • Sadness
  • Anger
  • Depression
  • Fear

photo credit: Enokson via photopin cc
Being unexpectedly without work and income is not a pleasant thing. After all, our jobs and the income they provide make it possible to pay the mortgage, utilities, food and all the other expenses that make life better. No matter how bad things are, you must get the correct attitude, the right mental attitude. The reason you must get and keep the correct and right mental attitude because it determines the outcome you will experience. If you analyze the results that a bad attitude brings, you will find a bad attitude produces:
  • Bad company
  • Misery
  • Sadness
  • Lack of opportunity
When you are a sad, depressed, angry or fearful person, you are bad company to be around. Those characteristics make you a miserable person.  It is important that you get the correct or right mental attitude while you are out of work. The correct or right mental attitude will help you to get a job and to be happier while you are out of work.  When a person has a correct or right mental attitude, she is:
  • Resolute
  • Hopeful
  • Adventurous
  • Determined
These characteristics are what give you the strength to keep going through the work needed to handle life while you look for work. When out of work it is important to behave as though you will find a job before things are totally ruined for your family. Have a sense of adventure because sometimes good things are things outside our comfort zones. Additionally, determination helps us to hang on when things are bad and to believe things will get better. These characteristics will get us good results and help us move from joblessness to full and satisfying employment.
The reason we need to develop characteristics that create a correct or right mental attitude while out of work is because when we sow a correct or right mental attitude we reap:
  • A good reputation
  • People who want to help
  • Positive results
  • Less stress
There is an idea commonly circulated now called The Law of Attraction. The idea is that the attitude you give the world is the attitude the world will give back to you. There may be some truth in this idea. After all, while misery loves company, no one wants to be that company!

Photo Credit: Janeane Davis, Correct and Right Mental Attitude
Photo Credit: Janeane Davis, Correct and Right Mental Attitude
In conclusion, it is wonderful to keep the correct mental attitude while you are out of work because it will make life smoother and happier for you. So, the question for you this wonderful day is, how do you keep a good mental attitude when things are not going well in your life?