Most people start their business off by plunging quickly into debt. A year or three later, they cannot seem to figure out why they are struggling to get by. The problem is, they started to quickly and upped their risk; they created a scenario where everything must work in order to be successful. They have no exit strategy. This is one reason that so many small businesses fail quickly.

In a debt-ridden society, the concept of starting off small seems rather bizarre. How do you do it? Here are a few tips to starting a debt-free business.

Start slowly. Most people decide to open their own business, and so they quit their full-time job. When things don’t pick up quickly, they must seek alternative ways to support themselves and/or their family. Credit cards quickly pick up the slack. Instead of jumping straight into the pool, why not wade out slowly? Start functioning your business at night and on the weekends. Don’t quit your day job until you are fairly close to generating the income you need to meet your basic needs. Yes, this means several 80 hour weeks while you are getting started, but remember that your ultimate goal is to quit your day job and succeed at your business. The harder you work in the beginning, the sooner you can switch over to just one job – yours – and either reduce your hours or at least make those long hours count in your favor.

Look for alternatives. Too often, we think we need the most expensive equipment right from the getgo, and this gets us in a financial pickle. Instead of rushing out to purchase that high-dollar gizmo, take some time to examine your options. Can you rent the construction equipment until you have saved up enough to buy? Can you borrow from someone else? Can you purchase the item used? These are all viable options until you are generating more income. Think of it this way: if your business only makes $10,000 in its first year and you’ve bought a $5,000 piece of equipment, you have spent half of your profits. On the other hand, by keeping your expenses low, you increase your profit. The other benefit is that you may find that you didn’t really need the equipment after all, or that you would rather have different features than you initially believed. You’ve just stopped yourself from making a costly mistake!

Work for yourself! It amazes me how many people want to be their own boss, then sign up with a large corporation to tell them what to do. If you want to go into the restaurant business, why not start your own? You get to keep your profits and be your own boss – and isn’t that why you wanted to start your own business? The startup costs are smaller, as well.

Educate yourself. The best investment you can make is in you. If you want to be successful in business, you need to learn everything you can – not necessarily before you get started, but certainly along the way. Your local library has a plethora of books available to you free of charge. Take advantage of these books, or consider some of the “new” media like books on tape or CD. When you take the time to expand your mind, you will expand your horizons and your money-making potential.

Visit Nola Redd’s own startup, an online bookstore, Redd’s Read Books. This article has been submitted in affiliation with http://www.Facsimile.Com/ which is a site for Fax Machines.

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