You can start a business on a shoestring. Borrowing money isn’t a necessity and often times isn’t the smart thing to do. That’s why I don’t discuss it as much as some of you may wish. Okay. I understand. You need and deserve resources. But before I get into sources of funding for your business, let me clear up one very important thing.
There’s a big difference between good debt and bad debt.
Investing in your business is good debt. Buying that bright-shiny-object-you’ve-had-your-eye-on-for-a-while-but-weren’t-sure-you-should-indulge-in, represents bad debt. If it doesn’t do anything to contribute to your financial health in the near or distant future, that’s bad debt. A luxury that doesn’t help move you forward is not worth it, particularly when you’re building your business.
I’m not against financing. I’m simply against poor choices / bad decisions / short sightedness. Before you jump into business financing, think long and hard about it. And do your due diligence!
Here are sources of business financing: