Part three of our “Building Freedom into your Business” Series is less rosy than the first two parts, but it tackles something that poses a direct threat to your entrepreneurial freedom: debt.
Below are Tyler’s tips for getting a handle on and tackling debt.
Tyler also goes into the ratio you need to know to determine if debt is threatening your business.
Key Takeaways:
- Debt robs your peace of mind – We all know this, but it bears repeating. Debt also limits your options!
- Know your “Quick Ratio” – Quick ratio = current assets divided by current liabilities. The higher this number, the more freedom you enjoy as a business owner. See the video above for an example of calculating your own Quick Ratio.
- Lower your risk profile – Knowledge is power. If your Quick Ratio is lower than you’d like, now you know you need to take steps to strengthen your assets. Check out the rest of the video, and this entire series, for more tips on how to build freedom into your business.
The book mentioned in this video is Profit First by Mike Michalowicz.
Watch the rest of the “Building Freedom into your Business” Series
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