SMART Tips on How to Start a Business Without Any Debt

By David S. Chang

Starting a business can break the bank if you aren’t smart about it. According to Camino Financial, startup costs can range anywhere from $5,000 to $125,000. Even with the internet helping startups lower costs, many business start-ups owners still find themselves in debt.

Lending money to small businesses and startups is a billion-dollar industry. While taking out a loan can help in the short-term, often it is the very debt itself that causes a business to fail. That’s why smart business owners do whatever they can to get started without debt. Here are SMART tips where you can start a business without any debt.

Lease or Rent, Don’t Buy

One of the biggest startup costs is office space, computers, software programs, copy machines, business equipment, and even transportation. To keep your costs low, look at leasing or renting the equipment instead of buying it.

Depending on your business, you may be able to bootstrap and fund the lease costs with incoming revenue. Need a vehicle for your business? Many auto dealers can offer a good lease deal. Even if you have bad credit, companies like OTR offer bad credit truck leasing.

When it comes to office space, don’t lock yourself into a long-term lease. You can work with companies like WeWork or Regus for month-to-month or even on-demand office space at affordable rates. Renting communal offices can give you the same big business brand while limiting your costs.

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Don’t Quit Your Day Job

Many budding entrepreneurs make the mistake of quitting their day jobs to start their business. This often leaves them with no choice but to take out a loan to fund their business start-ups costs. If it doesn’t violate your current work agreement, stick with your day job and embark on your start-up part-time.

Doing this would allow you to grow your business slowly while covering costs with your existing, reliable income. While it might involve burning the candle at both ends for a while, this is a sure way to afford even an expensive startup without any debt.

Building a Business from Scratch Using “Small Bricks”

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Too many startup entrepreneurs try to build their business with big bricks. They invest in large expensive office spaces right off the bat and hire a whole team of staff before they’re ready. There’s no way to do this without taking out a loan unless you have someone backing you or have saved up enough.

Work on building your business slowly using small bricks. Start at home where you don’t have to pay a cent and work with freelancers rather than full-time staff. Entrepreneurs have large dreams. Large dreams don’t require large bricks. You can still build your large dream taking small steps.

Not only will you save quite a bit in costs, you will find that your original business idea may have to be altered. Start with small bricks, test and measure the market response, then iterate quickly and improve. As revenue grows, you can continue to invest for future growth!

David S. Chang

Award-Winning Entrepreneur, Wealth Manager and CEO | Chief Editor, Author, Keynote Speaker, Consultant | Political Consultant | Army Officer National Guard | Living To Fulfill Needs, Solve Problems, and Live Passionately!


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