Cutting costs is a skill, not a panic. Done in the right order it buys you months of runway without touching the things that bring money in. Done in the wrong order it saves a little cash and quietly removes your ability to recover, which is why so many businesses cut marketing and their best person first and then wonder why revenue fell faster than expenses.

The same is true of debt. Most owners carrying expensive debt have more room than they think, because lenders would rather restructure a loan than collect on a failed one. The limiting factor is almost always how early the conversation happens. This step is about finding the real savings and the real restructuring options while you still have the standing to ask for them.

This Guide is general information about how these decisions are usually approached. It is not legal, tax, or financial advice for your specific situation, and nobody at LAEDC is your attorney, accountant, or financial advisor.

• A list of every recurring expense, monthly, with the amount. Pull it from your bank and card statements rather than memory
• Your revenue for the last six months, and which months are normally your weakest
• Cash on hand today, and what has to go out in the next thirty and sixty days
• Every debt you carry. Balance, payment, rate, term, repayment frequency, and whether you personally guaranteed it
• Whether anything is behind. Rent, taxes, payroll taxes, a loan, a supplier
• Which costs are genuinely required. Insurance, licences, compliance, the things you cannot trade away