How To Start A Business Debt-Free

Are you one of those people who dream of having their own business? If so, then surely you already have come up with dozens of ideas on what services or products you can introduce in the market.

However, we all know that starting a business can be costly. In fact, many people had their own taste of how’s it like, especially when it comes to finances since there are instances that a new business owner can drown in debt.

To help you avoid floundering in the sea of failed startups with debt, here are the important pointers you need to take heed. 

Don’t Quit Your Job Yet

Commonly, most people who decided to put up a business quit their job right away in order to focus on building the business. However, there are lots of people that may have advised you not to quit your job right away until the time is right. But how will you know if it is the right time? 

For instance, if you are working at a local print shop and you are building a web design institution of your own, then do not quit until the scale tips in favor of your new business. If your business is close to this setup, then why not start as a freelancer? You can do the job your client has given you at night after work or when you have spare time.

What matters most here is that you try not to quit your job. Not until it has beaten your day job income or you are earning more than your current income in the company. However, take your time of thinking things through when your business has started to be more demanding of your time. That’s when you should weigh things out.

Start with Bare Minimum

For every startup, this is the best way to do small business. Whether you are funded by a loan or is self-funded, what you need to ensure is that you can keep your business stay afloat without running bankrupt or being drowned in debt.

Depending on the kind of business you want to put up, you can choose to settle in your home first and not rent an office space yet. Also, if you need some equipment to run the business, then you might want to opt for the used ones first to help keep costs low. But if the situation calls for it, and you need extra funding, you can resort to alternative lenders such as CreditNinja’s Bad Credit Loans like personal loans and installment loans.

On the other hand, if you find it difficult to run the business with the money that you have just set aside for the building of your business, then you might want to consider a line of credit that would suit your needs for your business. However, be aware of bad credit loans since you may have to pay a higher interest rate, check with credit ninja’s bad credit loans to know more.

Create a Budget and Stick to it

Money is essential to the business. You can even say that it is the core of why and how you should plan things out for your business founding. With this said, knowing and reviewing your budget is one of the best solutions to avoid debt. 

What you should do is to be keen on watching what goes in and out of your business’ bank every single day. You should get to know your money so that you will know how to maneuver things.

What we can give you is a tip on how you can keep track of your business’ money is by inputting the values in an excel spreadsheet of all the money that goes in and out. Also, you might want to keep track of every dollar of your revenue to balance things out!

Know Your Manpower

Labor cost is part of the business since you cannot do everything on your own. But, there might be instances that you may have thought you might need a different kind of team for your business. 

For example, you will need a PR or marketing team, or perhaps you already need some administrative staff. With this said, you may not be far from other young startups that made this kind of mistake, which is scaling much too fast for their business needs. What we recommend is that you only get one or two people from the beginning who can help you implement your ideas. 

You may find yourself thinking of having a nice team. However, if your business can take you and some equipment in the beginning, then it would be wise to be by yourself for now. But, if you are starting to get more projects and you think it might go out of hand if you are by yourself, then that is the time you should consider recruiting an additional manning.


The discussion above is the basics on how you should run a business if you want to be debt-free, or at least not drown in massive debt for your startups. Thus, the only thing left is to implement the things stated above and sprinkle in some passion and hard work!

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