Many businesses rely on loans to expand; however, this has many repercussions, especially if the company does not do well in the months or years to come. You should never give up on your dreams; there are several options for you to run a debt-free business no matter how difficult it seems. Andrew Cravenho provides you with free tips to go about this. The first thing you need to do is commit yourself to live a debt-free life, and for you to be able to do this, you must believe it is possible and commit yourself. Living debt-free will require you to be patient and do things unconventionally. Investing in a debt-free life also means that success and growth will come about slowly. But the pros certainly outweigh the cons, so make that commitment right away. Secondly, if you are living in debt, pay off all the debts gradually. This will kill all your debts and set you debt-free. Make a list of all your debts and figure out where you owe the least money and work towards paying it off. Pay your minimum monthly payments on all debts each month and allocate additional funds to the debt you’re trying to pay off.

The next important tip from Andrew is building and maintaining your cash reserves; this is very crucial if you want to live debt-free. Building cash reserves means having an ample amount of cash as a backup that you can use when needed. After all, you certainly don’t want to go back into debt or delay payroll should anything go wrong. Create about 3-4 months’ operating expenses back up for emergencies. Subsequently, it is time for you to close all the debt cycles now by doing away with all your credit cards. You’re bound to feel anxious doing this, but it’s the best you can do to stop being in debt.

You also need to watch your expenses so that you do not end up in debt by spending more than what you earn. You can use these tactics to cut down your costs: 1) Wait until you have saved enough money to buy the things you need and then pay in cash or with your debit card to purchase them. 2) rent instead of buying until the right time when you have saved enough money. 3) If you must buy equipment, consider buying used. 4) Look for bargains when buying new furniture or equipment. 5) Consider your core services and do your best to excel in that field. Outsource the rest of the work to save your money. Finally, concentrate on your sales. If you spend substantial capital on purchasing new equipment or hire more workers only to realize that you’re not going to need any of them because you’re not making enough sales, you are sure to land in trouble. So, research the market thoroughly before you make significant investments and focus on increasing sales. Use these tips to get started on running your business debt-free.