What works to wipe out $400K of debt quickly

My client, a Physical Therapy business owner based in the UK, wanted to profitably exit her business. The problem was that she was $400k in debt from equipment purchases, prior year losses, and continuing education expenses. This means that proceeds from the sale would be eaten up to cover her debt.

Multiple previous advisors told her this was just the way it had to be.

But I knew that wasn’t true, and my team and I at Nth Degree got to work.

The Challenge:

Our client felt stuck. Her debt seemed insurmountable, and she couldn’t see a path forward despite guidance from other experts.

The (UN)Conventional Approach we took:

She reached out to Nth Degree and began working with our team of highly skilled CPAs. We guided her through our proprietary cash flow engineering process, which included:

• Categorizing expenses as core (essential) or non-core (discretionary) and eliminating or optimizing non-core expenses that weren't generating positive returns.
• Redesigning employee compensation to powerfully incentivize and deeply motivate team members to reach brand new revenue tiers — without adding on any rush for our client. (If we can brag for just a second, this was creative, hugely effective, and so many business owners can leverage compensation strategies like this).
• Creating an aggressive debt repayment plan with a target date for becoming debt-free. Thanks to all of our other efforts this became easy for our client to manage.

The Solution:

With Nth Degree's guidance, the owner:

• Paid off her entire $400,000 debt in under 9 months.
• Became debt-free just before being diagnosed with breast cancer, allowing her to sell her business and focus on recovery without financial worry.
• Successfully battled breast cancer and is now pursuing her true passions, with one book published and another on the way.‍

‍The Impact:

"Working with Dan and Nth Degree was life-changing," the owner shared. "Not only did they help me eliminate my debt and sell my business, but they also gave me the financial freedom to focus on my health and pursue my dreams. I'm forever grateful for their expertise and guidance."

This client’s story is an emotional one for us to share, and we don’t share it lightly. It’s an example of how important it is to achieve a higher level of financial certainty in your life and business. The better your financial position, the better you’ll be able to navigate life’s unexpected challenges. We’re honored to have played a role in 180-Ing our client’s financial situation, which helped her sell her business for a profit, equipping her with the time, means, and energy required for a challenging health battle.

The Counterfactual:

While it’s impossible to say with certainty what would have happened without us, had we not stepped in, this owner would likely still be struggling under the crushing weight of her debt, unable to sell her business and focus on that which needed her full attention: her health, nor be able to ultimately pursue her other passions. This is especially likely given the fact that any of the previous firms she consulted with told her that there was no way out of her challenge. The ongoing financial stress would make any health challenge even more grueling.

These are the facts:

If you're a $1M-$10M/year business owner who’s unable to grow because of debt/cash flow issues, and you’re willing to do what it takes to solve your challenges powerfully and permanently, the first step is getting your financial plan. There are likely (UN)Conventional strategies you ought to leverage that can result in improved cash flow, debt eradication, a profitable exit, and so much more.

If you’re ready to tap into our expertise for your benefit, you may consider booking a call and we’ll see if you’re a good fit to work with us.

Here’s to your success and financial certainty,

Warm regards,

Dan Nicholson

Founder, Nth Degree CPAs
Author of “Rigging the Game”

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