Debts should be completely avoided by any entrepreneur who hopes to succeed and make it big in business because they could suffocate your establishment if they are not well managed. They may play a role in helping to revive a dying business; but where possible they should be avoided.

One may be tempted to go into borrowing as a way to getting funds to run one’s enterprise. Before doing so, one has to be sure one is able to manage the fund well so as to make profit and pay back the capital and the interest.

There are several ways to avoid business debts, some of which include:
1. Don’t borrow to run your business: Borrowing could be dangerous because if your projected profit becomes unrealizable, you are going to run into debt. Taking loans from the banks for example during this period of economic meltdown could spell a doom if the value of your currency continues to depreciate. The profit you would make could be very minimal while the losses accumulate. The depreciation in the value of the currency means you would have to pay more in terms of the interest and capital when the currency suddenly appreciates because the interest rate is fixed.
2. Don’t buy on credit: Buying on credit especially in bulk could also leave you in high debt in time of uncertainty. If you deal on perishable goods for instance, in the event that you are unable to sell all your goods within a short period, they get spoilt and you lose out. The creditor would still collect his money irrespective of whether you were able to dispense of your goods or not. Non-perishable goods could also accumulate debts if the demand for them is reduced. The more it takes to sell the goods the more interest they accumulate if you bought them on credit.
3. Get a good manager: Get a good business manager to take care of your funds. Your manager should be one who has the experience to run your enterprise in such a way as to guarantee you profits.
4. Plan well: Don’t be in a hurry to expand your business; make sure you are firmly established before thinking of setting up new branches. Otherwise the fund available for your use would be used to open up several quasi-branches that eventually end up all being unviable. When that happens, you lose all the money you had used to open the various branches.
5. Regulate your purchases: Make sure you are able to use your available money to buy the most basic needs of your business. Whereby your money is not enough to get all you require, you could also buy fairly used equipment to augment the basic ones; as you make more profit you get them replaced.
6. Sell less on credit: Selling your goods on credit could also leave you in debt as well. By the time you have sold most of your goods on credit and the debtors refuse to pay back on time, you are forced into getting money from banks or other financial institutions in order to continue to run your business.

If you wish to continue to run your enterprise without tears and without fears of losing your assets to your creditors, you must avoid being caught in a tight corner. Don’t go for moneys that eventually become difficult for you to pay back.

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