Steps on How to Start Your Business Debt-Free


It can be an expensive and stressful venture when you start a business. Lines of credit, business loans, and venture capital. All of these funding options and more be extant for businesses that need to expand their facilities, to acquire equipment, and need to grow.

Most of the initial development and progress for small business is financed on loans or borrowed money. However, over the years, a lot of small businesses have started to steer clear from getting business debt.

If you want to start your business debt-free, below are some steps you should know. Read on to learn more!

5 Steps To Start Your Business Debt-Free

How to Start Your Business Debt-Free

1# Don’t Quit Your Day Job

Does starting a business and not quitting your day job seem impossible? Even though it can be hard and stressful, consider keeping your day job at the moment until the perfect time is right or the scales tip.

Say, for example, you are planning to launch a web design agency and are working at a print shop. Consider doing freelance work on the weekends and at night until you have enough business to prove to spend more of your time doing design work, unlike working at the local print shop.

Generally, you need to build your clientele first before quitting your day job, only doing so once the scales tipped of your new business.

Try not to leave your day job until your new business is surpassing your day job in some factors, such as you are earning more from your new business than your day job.

2# Begin With The Bare Minimum

For every startup business, starting out with the bare minimum is always true, regardless of whether it’s self-financed or funded by bad credit personal loans with guaranteed approval. See to it that you start gradually with regards to the essential tools that will make sense financially until your business obtains momentum.

As a business owner, you can opt to turn a space in your home as your office for about a year until you can manage to rent out an office space.

What’s more, consider using free sources and used equipment to promote your product or brand and to keep costs low.

Moreover, if you can’t bear the costs of taxes, energy bill, furniture, and more, do think of other options like the following:

  • Hire freelancers
  • Hire staff on short wages and terms
  • Outsource your work
  • Go digital
  • Rent a ready to use office space
  • Hire meeting rooms on a daily or hourly basis

3# Ask Funding From Your Family Or Friends

Although seeking funding from close friends and family members may make you go weak and scare you, these people can, without a doubt, be approached if you need some cash. But keep in mind that you need to guarantee them that you can pay what you borrow.

Explain all the details with regards to your business plus the expected projections for the coming years. Take note that these pieces of information can be very beneficial because it can make you feel more confident.

Additionally, you can make sure that you pitch in the correct method for seeking funding from close ones. Most importantly, make sure to let them know the payback dates.

4# Plan For Future Windfalls

In the future, when you get a bonus from closing a deal or land a huge project, divide them into three categories. These are the following:

So that you can start a business debt-free, opt for a feast and famine account. This account can only be accessed when you need it to cover essential needs or emergencies. If you have this account, you will surely feel more secure about your financial picture.

Also, it can help you manage the hard months without needing to take out a loan for leverage. Once you have your feast and famine account, you can easily invest your big windfalls for the future of your company.

5# Separate Needs From Wants

As a business owner, it becomes easier to estimate your expenses, unlike estimating your income. That said, begin with the essential things which are your business needs. These things keep your business running at its best.

Moving on, include your wants on the list, as well. These are the things you want your business to have but are necessary to keep it running.

The sum of your needs and wants will be your overall expenses figure. In case you have low months of income, always separate your needs and wants, and pay only the essentials.


With the help of these steps, you can build and start your business successfully and debt-free. Also, you won’t have any issues paying your bills, taxes, and dealing with windfalls. What’s more, your business can grow organically, and you’ll be able to oversee or watch it.


Author: Bree Diaz