Starting your own business can be a great adventure, but you need to make sure you have a clean slate when you do it. If you have a bunch of personal debt hanging over your head when you launch your business it could come back to bite you later on.
Instead of adding to your debt by starting a business that’s going to take a lot of money from you, make sure you have all of your personal finances dealt with first. Then start working toward some money that will be specifically for your business.
Get Out Of Debt
For some people getting out of debt will be easy, for others, it won’t be. If you don’t have a whole lot of debt getting some money from a lender may get you enough to get out of the hole. If you have a large amount of debts you might want to look into debt consolidation.
It could take some time to get your debts cleared away. During this time you could be looking for the money you need in order to start your business. Start getting your business plan designed and maybe even launch a crowdfunding campaign while you’re working through these other things.
Invest In Your Home
If you are going to be working out of your house you want to make sure that you’ve invested in your home office before you get your business going. You need that space to work, whether it’s an office or a crafting space. The more ready your home is to transition into a business the easier it will be to make that change.
Have The Right Tech
Technology is another area in which you’re going to need to invest as a small business owner. If you have bad credit you might find it hard to get a good phone account, even a smartphone contract, without some kind of deposit. Get all that squared away.
Your first business credit card can be used to purchase the office equipment you need, but you want to remember you won’t have income immediately even though you’ll have to start paying that credit card bill next month.
Save Some Money
You need money put away in savings. This is not for your business. Starting your own small business is a risk, and if it’s one you’re determined to take you better have a safety net.
That safety net will be your savings account that has at least three to six months of income put away in it. This will cover your bills and food until your business is making a profit.
Get Small Business Loans/Grants
Last, but not least, you definitely want to get applying for those business loans and grant. This is the money you want to use to get your business up and running. The sooner you launch the sooner you can start bringing in some income and getting out of the red.