Debt is one of the biggest problems that has plagued mankind ever since the beginning of civilization. Today, that plague seems to be worse. With student debt, crippling many even before they dip their feet into the world of employment, most people live all the life in debt.
To make matters worse, the 9-to-5 doesn’t seem to help clear
the mountains of debt many are under.
This has led to the rise of the startup culture. With its
promises of financial freedom, many are seeking greener pastures in starting
their own businesses – be it side hustles or full-time businesses.
But is it even possible to start a business with bad personal
debt?
Let’s find out, shall we?
What Does it Really Take to Start
a Business?
The first step to starting a business is to understand what you
really need to start a business that will thrive. Let me share the top 3 with
you.
A Profitable Idea
Every business starts off as an idea. That’s the first and most
important thing you need to start a business. But not just any idea mind you,
it has to be an idea
that you can sell. Ideas are plentiful but not all of them translate into
profit.
Your most important task then is to come up with an idea and
define it clearly.
A Bankable Business Plan
Once you have your idea, you will then have to translate it
into a business
plan. A business plan so good any investor will clearly see the profits
even before the inception of your startup.
Time
This is one of the excuses people give for not starting a
business – “I just don’t have the time”. While I may not have an idea of your
schedule, one thing I know is that if you truly want to break free from the
chains of debt, you can make time for a business.
When it comes to making
time for your business, all you need is a couple of hours a day. As they
say, Rome was not built in one day. The few hours you spend on your side hustle
in a day will go far in helping you set up a profitable business. True, you will
have to sacrifice your evenings and weekends, but it will definitely be worth
it in the long run.
Do Your Personal Finances Come
into the Equation?
While personal finances shouldn’t stop you from starting your
own business, they do have an impact, especially if you need to borrow money
for capital. However, with a solid business plan, obtaining funding for your
small business becomes easier.
That doesn’t mean you should ignore your personal debts though.
There are a number of options you can pursue in order to manage your debt, such
as debt consolidation among many others. Take control of your finances and work
toward building a good credit record with the help of a financial service
provider. The advantage is that you‘ll pay less interest with a
debt management plan that will be recommended and tailored to your specific
situation. This will also make it easier for you to secure any funding that you
will need to launch your business.
Starting a Business with Personal
Bad Debt – It is Possible
Personal bad debt is no excuse for not starting a business. If anything, it should actually drive you to it. And what better time to start than now? So go for it.
