A question by many: Should I go into debt to start my business? In short – no, not unless the business you’re going into is a certainty. However, there are no certainties in the business world! No matter how great your idea, there is still a risk – it might not catch on, the market may not be interested right now, or maybe your execution is totally wrong, even if you don’t know it.
Here’s what you need to know:
Move at the speed of your cashflow
Starting on your own terms without taking out any form of loan or investment allows you to move at your own speed. Not only is this less stressful, but this also allows you to focus your attention on what really matters: your business.
What happens if you can’t meet the payments? Your business idea is not paying off, and now you’re left with more debt. It’s simply not a smart approach.
Instead, the speed you’re working at must be personal. If you are looking for some extra cash flow why not get a part-time job waiting tables, freelance writing, or even selling products on eBay?
This way is much safer and will actually increase your motivation to work.
Uncertainty is all around us
As I’ve already mentioned, no matter how good your business it’s impossible to tell whether or not it’s going to be the next big hit or even a hit! The majority of businesses fail within their first couple of years… don’t let this be you!
While we all want success, accumulating debt to start an uncertainty – as that’s essentially what your business is at this stage simply places further stress in your life.
To grow a successful business, you need to work at your own rate, not finding other ways to make money to pay the debt which you shouldn’t have in the first place.
Be smart, take your time, and trust your ambition.
“Entrepreneurship is living a few years of your life like most people won’t so that you can spend the rest of your life like most people can’t.” – unknown.
There are risks associated with everything in life, crossing the road, handing a test in late, or skipping work to watch the New York Jets, however, it’s important to realize that these risks aren’t bad, it’s how we calculate them.
However, once your business is rolling, taking on a little debt is sometimes not a bad idea! In fact, it can help you increase your growth in a fraction of the time compared to going it alone.
So, what’s it going to be? Are you going to take out debt and pay for it for the rest of your life or are you going to work hard and reap the rewards that many dream of? Let me know in the comments below.