Borrow Money To Start A Business?
Borrowing money for business is as old as time. Or at least as old as the first time someone did it. Whatever. Either way, it’s one of the most-asked questions we get about starting or expanding a business. There’s no way you can start or expand a business without debt … Can you?
And while I don’t know if I’ll ever see this myth put to rest in my days of enjoying vanilla lattes on this planet, hopefully I can dispel it for those who follow me. YES, you can run, start and expand a business debt-free! Don’t believe me? Check out the data from the most recent U.S. census on the amount of money needed to start a new business.
- 1% needed $1,000,000 or more
- 14% needed $25,000-$999,000
- 34% needed less than $5,000
- 26% did not require any money at all!
(SOURCE: “48 BUSINESS IDEAS” BY DAN MILLER)
If 60% of new businesses can start on less than $5,000, so can you. What’s the difference in starting debt-free than with debt? You don’t start at the size you want, which, by the way, is better! You grow at the rate that God wants instead of the rate that you want—keeping the mistakes down that borrowed money magnifies.
Start small and debt-free. Do everything you can to create revenue and pour it back into the business. That way, the blood, sweat and tears are from hard work instead of stressing over your bank loan.
Question: How does understanding the numbers effect your decision to start a business?