It’s rare to find an American adult who has no debt whatsoever. Between credit cards, student loans, car loans, and mortgages, most people owe money to someone. If you have personal debt, you may wonder if you should attempt to pay it off before starting your own business. While you might want to wait if you have a significant amount of personal debt, starting a business while having the typical debt payments isn’t a deal-breaker for most people.
Make Sure You Know What Your Budget Can Handle Before Moving Forward
Evaluating your finances carefully is a crucial first step before launching a new business. Keep in mind that carrying a significant amount of personal debt can make it difficult for you to get business financing. It can also detract potential business partners or investors.
Perhaps one of the most important things to realize is that you likely won’t earn any income from your business for quite a while. If you’re married, having your spouse pay towards the debt while you work toward business profitability can be a good compromise. If you don’t have anyone else’s income to rely on, it’s a good idea to meet with a financial advisor to plan how you will meet your personal debt obligations during the earliest days of managing your new business.
There’s No Perfect Time to Start a Business
Starting a business of your own comes with rewards and challenges no matter when you do it. It’s simply a matter of minimizing your risks as much as possible and planning well for the future. A financial counselor at Steadfast Funding Partners would be happy to assist you with evaluating your finances. Even if you decide that you have too much personal debt to pursue business ownership right now, you can always create an accelerated debt repayment plan with help from one of our advisors would be happy to assist you with evaluating your finances. Even if you decide that you have too much personal debt to pursue business ownership right now, you can always create an accelerated debt repayment plan with help from one of our advisors.