Home Business Tips 10 Startup Tips for Launching a Business When You Are in Debt

10 Startup Tips for Launching a Business When You Are in Debt

Startup tips for launching a business from scratch

A couple of years back, Scott Oldford was $726,000 deep in debt but today, he’s been able to build a 7-figure business. Not just that, he’s been committing a huge portion of his time helping other people to move from 6 to 7 and even 8 figures. In 2017, he helped 26 people become millionaires.

Startup tips from Scott Oldford
Scott Oldford. Photo Credit: Infinitus

Why am I telling you this?

It’s simple.

I want you to know that it’s a myth that you need a huge amount of money for setting up a business. If someone throws that up as an excuse, it points to the fact that he or she hasn’t done their homework very passionately.

Obviously, a good credit score and extra money can help, but this doesn’t mean you have to give up your dream if you’re in debt or running low on cash. If Apple and Dell can start in garages, then why can’t you launch a successful business using your dream, passion, effort, creativity, and a small amount of money?

In this post, you learn:

  • How to Select a Low-cost Business
  • Ways You Can Spot Cost-effective Strategies
  • Your Personal Assets with Which You Can Kickstart Your Dream Business
  • Alternative Means for Financing Your Startup Even While in Debt
  • Where to Start Your Business from When You Are Debt or Totally Out of Cash
  • How to Get Passionate Partners Like You that Will Help Grow Your Business
  • Ways You Can Sustain Your Business Growth

Are you ready?

Let’s dive right in immediately.

10 Powerful Startup Tips for Starting a Business When You Have Debts

Nothing is impossible if you want to pursue your dreams. The blog you are reading right now is a living example. Entrepreneur Business Blog was started while Emenike Emmanuel was serving as a Corps member in a remote village in Nigeria but today has grown into a world-class business blog.

If you want to be an entrepreneur even when you have debts, use the following startup tips wisely. Hopefully, these powerful business tips will help you achieve your dreams.

Startup Tips 1: Select a Low-cost Business

Since you have debts, so it’s logical to start a business that doesn’t need a huge amount of capital to start. Businesses that don’t need a lot of money are the ones that are run from the home.

Think about the skills you can sell like copywriting, graphics, bookkeeping, child care, tutoring, etc. Find out if there is a good market demand for these kinds of services or else your business will be a disaster. You will find a perfect guide on how to do that successfully in this FREE eBook.

Startup Tips 2: Look for Cost-effective Strategies

There is a quote that says, “Doing business without advertising is like winking at a girl in the dark. You know what you’re doing, but nobody else does.” Your business can’t thrive if consumers can’t find you and don’t buy your products. So marketing is absolutely necessary.

It’s understandable that you can’t use expensive business techniques due to a lack of funds. But you can use inexpensive business techniques like social networking, blogging, email marketing, business cards, etc.

Read articles on inexpensive business marketing strategies. Choose the ones that can help you sell your products faster and more profitably.

Have you saved a significant amount in your bank account? Use it to set up your business. Do you have a laptop or any other equipment? You can use it to set up your business. Don’t buy the new equipment unless that is absolutely necessary. Try to wait till your new business starts reaping profits.

Startup Tips 4: Try Alternate Financing Options

As one just starting out or already in debt, banks and other financial institutions may not be willing to lend money to you. Traditional financing options are almost closed for you. Some small business lenders may ask that you personally guarantee loan repayment when your company can’t make the payment. This could increase your financial obligations.

You can apply for personal credit cards but they are also not a good option. These cards won’t help you build business credit. Rather, they hurt your personal credit.

Your best bet here could be to create a strong business plan so as to obtain grants and loans through other sources like investors, small business administration, and microlenders.

Or sell what you have and start with it. What’s an iPhone of $1,200 doing in your hand when all you should need is less than $500 to kickstart a profitable online business?

However, if you make up your mind to go for a loan, do well check out what Banks and other financial institutions may never tell you about taking a loan.

Startup Tips 5: Operate Your Business from Home

One of the ways to lower your overhead is to operate your business from home. Buying a commercial property is out of the question when you’re in debt. You can try to rent a commercial property, but that also needs a lot of money. So the best option is to operate your business from home. You can keep the bigger percentage of the profit to help your business grow.

Startup tips for launching a business from scratch

If you opted for the option of starting an online business from scratch, then you can be assured that nothing will ever limit you from managing the business from home or anywhere else in the world.

Startup Tips 6: Start an Online Business

It doesn’t take a lot of money to develop a website. You can create a blog on WordPress. You can set up a very portable e-commerce business that is not expensive. You can provide service to clients across the world and earn money. This thing is not as hard as you are thinking. In this piece, Emenike Emmanuel gave a step-by-step guide on how you can plan and execute your blogging business.

One of my ex-colleagues was a web developer. He worked for 5 years as a web developer in our office. John (my ex-colleague) had always wanted to work independently but he was not confident.  So, he started freelancing on the weekends as a side gig. He started with small projects and later on grabbed big projects too.

John developed a website highlighting the kind of services he provided. It took him only one week to launch his company officially. There was no looking back after that. Today, he is doing very well. He is making a good amount of money every month.

He is working with his wife Kylie who is a graphic designer. Both of them work together with only one laptop. That’s all they need.

John had $50,000 credit card debt. He has already paid off $40,000 and that took only 2 years. I feel that’s commendable. He is also planning to move into a bigger apartment in the next year, and that’s a good financial goal.

John chose to leave his job. But you can manage both your day job and the online business.

Startup Tips 7: Cut Your Personal Expenses

The other meaning of entrepreneurship is personal sacrifices. You have to make a lot of personal sacrifices for the sake of your business.

Entrepreneur, Nicole Bandklayder of NB Talent Services was in credit card debt when she launched her first business. She reduced her personal expenses for the growth of her business. Once she said, “When you are starting a new business, you are going to have a lot of expenses to consider, which can be harder when you are in debt.”

Nicole suggests entrepreneurs keep their bills low since that would help them to free up cash for investing in the new business. She herself relocated to Minneapolis from the super expensive New York City for lowering her living expenses. That was the smartest thing she could do to cut personal expenses. You too can do a similar thing.

Plan your means smartly, eat less at pricey restaurants, refinance your auto loan, and modify your home loans to lower your monthly expenses.

Stick to your personal budget every month. Entrepreneurs have a variable source of income. You need to be extra careful and find out the ways to stick to budget even with variable income.

Startup Tips 8. Find a Business Partner

You may not have a huge amount of money to set up your business but someone else might. If you can find somebody who has cash and is ready to set up your business, then you can get accomplished sooner. You may consider that person as your business partner, but you would have full control over your business.

You can borrow money from your friend or a relative. If you’re confident that your business will do well, then ask a family member for an interest-free loan.

However, financial experts often warn entrepreneurs against borrowing money from a family member for business since it can ruin relationships. I can’t deny this fact since it’s true. So always have a time frame set in when you pay off the loan. Don’t let money ruin your relationship.

Startup Tips 9: Reinvest Your Profits

Running a business is not an easy task. There are so many things to take care of when you’re running a business. You have too much work and responsibilities on your shoulder. Moreover, you have to handle your creditors to whom you owe money. On one side, you have to take care of your business customers. On the other side, you have to think about the debt repayment strategies.

It’s tempting to use your business income for paying off your debts. However, until your business generates steady revenue, it’s best to invest the money back into the business. Invest money in marketing since that can help to accelerate your business revenue. Don’t buy equipment that is not necessary.

Startup Tips 10: Pay Off Your Debts

Pay as much as you can to clear your personal debts. Review your credit card statements and bills.

Create a budget and a debt repayment strategy to pay back your creditors. Talk to a credit counselor and find out the ways to pay off your debts.

You can even settle your debts to repay debts and save money. Get in touch with reliable professional debt relief companies since they are good at negotiations.

Scrounge up as much money as you can when you set up a new business with as little debt as possible. Debts can be overwhelming for you. It can eat up a portion of your business revenue. Plus it can lead to a severe headache. This is why it’s best to reduce your personal debt before starting a business venture.

A Word of Wisdom

Don’t leave your job just yet. You need to make sure your business is reaping profits before you quit your job so that your monthly income won’t be compromised. You can also run your new business with the money you get from your day job. There’s nothing wrong with keeping that business as a side hustle until it is generating enough money and you are sure you’ve figured out all the income strategies.


Sometimes, life creates situations where you land up in debt. You can’t help it. Many would-be entrepreneurs give up their dreams due to student loan debt, credit card debt, home loans, auto loans, etc.

Don’t put your dreams of business ownership on hold just because you have debts.

I’m not suggesting that you quit your job and start a business when your credit card accounts have been assigned to debt collection agencies. That’s like committing financial suicide. But carrying debts shouldn’t stop you from starting a side business. It’s tough but it is possible to start a side business under tough financial situations.

Use the aforementioned tips. I’m sure you can use some tips to start your business and keep your cash flow steady.

Previous articleThe Definitive Guide to Skyrocketing Your Project Management Skills
Next article5 Amazing Career Advice from Steve Jobs
Stacy B Miller is a web enthusiast, blogger and content editor. She writes articles on different financial topics like debt, credit, tax, and personal finance. You can check out her blog Kiss Your Money


  1. Hi Stacy,

    Great to meet you here. You have given such excellent advice for starting up a business. I have had an offline business years ago before the internet and didn’t have enough start up money but started small. I kept my overhead low and profits high enough to invest in that business until it flourished and grew to the point where my husband had to quit his day job to help me out.

    The same applied with my online business. I didn’t want to invest much at the beginning … Just enough to get me started. That included coaching, many learning curves and a good business plan. Investing in my online business is something I continue to do. As I grow so does my business. With that being said, there is always investments to be made.


  2. Hey Stacy.

    I have shared this article on twitter. When in debt it is important to keep all the options and moving on with the idea of getting out of it.
    Thanks for sharing this article.
    Keep up the good work )


Please enter your comment!
Please enter your name here