When you start a micro business, it shouldn’t require that you go into debt to do so. In fact, most micro businesses can be started with out any start up funds at all!
One thought for teenagers is to start a small micro business to fund another larger business. When you start a micro business without debt, you’ll be able to pocket more money as profit or put the money back into the business.
Why You Shouldn’t Start a Micro Business With Debt
There are several reasons why I discourage debt when starting a micro business. But you don’t just have to take my word for it! Below are 3 of the most important reasons why you shouldn’t start a micro business with debt. The reasons are backed up with quotes from the Bible and other influential leaders.
#1 Debt Presumes Upon The Future
When you go into debt to start a micro business, you are taking a risk! You are betting that you will have the money in the future that you don’t have today.
This presumption is dangerous because none of us know what lies ahead. It’s really risky for any of us to presume that we can predict the future.
James 4:14 says, “Why, you don’t even know what will happen tomorrow…”
#2 The Use of Debt Encourages Quick or Rash Decisions
If you are able to get a loan quickly or borrow money from your parents, you won’t take the time necessary to consider other funding method. You also won’t be as creative in finding the needed money or equipment.
Remember that careful planning and decision making can really pay off financially. It can also help you avoid many mistakes.
Proverbs 21:5 says, “Careful planning puts you ahead in the long run; hurry and scurry puts you further behind.” Another quote I like is from Benjamin Franklin, “He that goes a borrowing goes a sorrowing.”
#3 Debt Make You a Slave to the Lender
When you in debt, you aren’t free. This is because you are under obligation to pay back what is due to another person.
Debt is a burden that will drag you and your business down.
Remember this verse from Proverbs 22:7, “The rich rule over the poor, and the borrower is the slave to the lender.”
Finding an Alternative
Starting a micro business without debt is very possible. In fact my book, Starting a Micro Business, has a whole chapter dedicated to financing your micro without breaking the bank.
But the book isn’t just about debt and finances. Also talked about is how to find an idea for a business (free chapter is available), how to write out a business plan, how to avoid common problems & pitfalls, and much more! I encourage you to check out the book today. It’s available on Amazon in paperback or Kindle edition as well as on my website.
P.S. The Kindle edition is only $4.95 and can be shared with your family on different Kindles, iPads, iPhones, or other tablet devices! Perfect for homeschooling families on a budget.
Carol Topp, CPA