Managing Enterprise Debt

Raising new financing and extending your runway.

These are things that keep entrepreneurs and executives up at night, but are often the result of having too much Enterprise Debt. At many software oriented companies the term Tech Debt is often used, which is making short-term tradeoffs between speed, quality and cost.

These choices all make sense, especially when managing limited time and resources to get results quickly. But much like financial debt, this Debt incurs “interest” over time.

Similarly there are parallels in Enterprise Support functions including accounting, finance, and HR. Over time companies will accumulate interest resulting in significant future costs, inefficiencies and in some cases legal risks.

We’ve seen this occur in companies of all sizes and if left unaddressed the debt often comes due at critical times.

On the upside, companies can take simple steps to mitigate and reduce exposure to Enterprise Debt.

What are you doing to minimize your Enterprise Debt?