How to Keep Debt at a Minimum When Starting Your Own Business at any Age

There’s nothing like owning your own business and, more importantly, being your own boss. It’s important to remember that when you work for someone else, the first person who gets paid on payday isn’t you or even your boss. It’s the government.

But owning your own business means you control the money and get paid first. You also control your hours and how and when you wish to work. In other words, if it’s a cold, rainy Monday morning, instead of having no choice but to get up at dark thirty to make the 8 AM train or bus, you can sleep in for an extra hour or two.

However, the hard reality about starting your own business at any age is that you will need start-up capital. If you want to start a freelance writing business, the money required to get started might be minimal.

Perhaps your business will only require a $10,000 line of credit to cover the overhead while you wait for the money to start coming in. But if you’re starting a company that sells physical products, you have merchandising and warehouse costs, plus the cost of a brick-and-mortar rent, a new website, your salary, etc. How can you cover these initial expenses without going broke?

If you happen to be 62 years of age and own your own home, you can apply for a reverse mortgage. How does a reverse mortgage work? Says All Reverse Mortgage, Inc., the reverse mortgage is a type of loan that allows those who qualify to borrow against the equity in their home. They no longer need to make monthly payments.

The loan proceeds can come in the form of monthly disbursements or one lump sum payment. The loan need never be paid back until you leave the house or die. Moreover, you can use reverse mortgage proceeds to start your new business venture.

But what if you don’t own a home or are too young to apply for a reverse mortgage? How can you start your own business without getting into major debt? According to a recent report by Harvard Business Review, starting a new business takes commitment, first to yourself as a businessperson and then to your new venture. You must not only love what you are doing but also possess a passion for it.

If your heart’s not in your work, you will only go so far or resent it and fail altogether. If you’re risking everything to enter a new business, you must ask yourself this vital question: if your plan succeeds, no matter how humbly, are you willing to be in it for the long haul?  

Develop Authority and Pursue Your Skills

Now that you’ve established your business idea, you need to go after some educational experiences that will expand your knowledge base. A good place to start is by researching the industry you wish to break into, along with the competition you will be facing. How can your brand stand out among the crowd? How will you finance the venture without getting into massive debt?

During the initial stages of starting your business, you can bounce your ideas off family and friends (those you trust to tell you the truth even if it hurts). You might want to volunteer in related organizations or companies to get some crucial hands-on experience. Writing and publishing blog content that will establish you as an up-and-coming leader in your chosen industry is also important. You can attend industry events and build up a network.  

Funding Your New Business

Says the Harvard Business Review, for entrepreneurs who are well connected and whose families might have some money behind them, this part might not prove difficult (although even the most successful and wealthiest families can insist you must learn to succeed or fail on your own). But for those who have no hope for family support, the funding part of starting a business can be a real nightmare.

Many would-be entrepreneurs who are broke have no choice but to self-fund since banks will likely be averse to granting you a business line of credit. This means taking on gigs and side jobs until your business is financially stable enough to stand on its own two feet, so to speak. 

It’s quite possible that something can go wrong during this period, and the business idea must be abandoned. This is not at all uncommon. You can be pushed to the limit, physically, emotionally, and financially trying to make a go of it. However, if you take a breath and plan, it’s quite possible you can end up successfully funding your project with the proceeds from side jobs or if you’re older, from the equity built up in your home.

Bottom line: it’s possible to create a business at any age without going into massive debt.

Building your own business is one of the most challenging and even fun projects you can ever experience. But it will not be without its challenges or risks. When Elon Musk began Tesla and Space X, he put every available dollar he had into the ventures, then asked friends if he could borrow the cash he needed for his rent. Now, that’s conviction. You might not become a billionaire or even aspire to be one, but it’s the same conviction you will need to make your new business venture successful.



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Adam runs the grooming section at Unfinished Man, where he reviews the latest hair, skin, and shave products for men. With a passion for men's grooming, he continuously tests shampoos, conditioners, gels, moisturizers, razors, and more. Adam provides knowledgeable, trustworthy recommendations to help readers upgrade their routines. His background in evaluating hundreds of products makes him an expert on finding the best innovations for every guy's needs.

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