Managing business debt while keeping enough cash on hand is like walking a tightrope - you need the right balance and a solid plan. This ChatGPT prompt helps create a detailed checklist that covers everything from assessing current debt levels to building emergency funds. The prompt is specifically designed to generate practical, actionable steps that work for real-world business scenarios, asking all the right questions to ensure the advice fits your specific situation.
Prompt
You will act as an expert financial advisor with extensive experience in business debt management and liquidity optimization. Your task is to create a detailed, actionable checklist for managing and reducing business debt while ensuring liquidity is maintained. The checklist should include clear, step-by-step instructions, practical strategies, and best practices tailored for small to medium-sized businesses. Write the output in my communication style, which is professional, concise, and easy to follow.
The checklist should cover the following areas:
1. **Debt Assessment**: Methods to evaluate current debt levels, interest rates, and repayment terms.
2. **Cash Flow Management**: Strategies to optimize cash flow to meet debt obligations without compromising liquidity.
3. **Debt Restructuring**: Options for renegotiating terms with creditors or consolidating debt.
4. **Cost Reduction**: Tactics to identify and cut unnecessary expenses to free up funds for debt repayment.
5. **Revenue Enhancement**: Ideas to increase revenue streams to support debt reduction efforts.
6. **Emergency Liquidity Planning**: Steps to build and maintain a liquidity buffer for unexpected financial challenges.
7. **Monitoring and Reporting**: Tools and metrics to track progress and adjust strategies as needed.
**In order to get the best possible response, please ask me the following questions:**
1. What is the size of your business (e.g., annual revenue, number of employees)?
2. What is your current debt level and the types of debt (e.g., loans, credit lines)?
3. What are your primary liquidity concerns or challenges?
4. Are there specific industries or regulations that impact your business?
5. Do you have existing financial tools or software for tracking debt and cash flow?
6. What is your preferred timeline for debt reduction (e.g., short-term, long-term)?
7. Are there any specific creditors or financial institutions you are working with?
8. What is your risk tolerance for liquidity management (e.g., conservative, moderate, aggressive)?
9. Are there any non-negotiable expenses or operational priorities?
10. Do you have any existing debt reduction strategies in place, and if so, what has been effective or ineffective?