Have you ever considered using debt as leverage for your new business? Have you thought about borrowing money to grow your business?
If you’re any kind of entrepreneur in the slightest you’ll eventually reach the point where you realize that you need to invest some capital into your business in order for it to grow. This investment can be something as simple as hiring much needed consulting services or as complex as trying to find a new office in town. Regardless of the situation, it’s never an easy decision to use debt to grow your business.
With that being said, let’s start the discussion surrounding the fear of using debt to grow your new business…
What are the other options for growing your business?
Is there any other way you can acquire this capital? There are times where all you really need to bring your business to the next level is more time/organic growth. Then there will be situations where you need to invest more man hours. And yes there will also be points where you need to invest money. I like to consider the option of more time and effort before I put money into something.
What’s the worst case scenario?
I always like to think about the worst case scenario when I feel stressed out about something. When it comes to borrowing money to grow you business this can be a bit scarier. The fear of losing your business completely or putting yourself into massive debt for your business can keep you up at night stressing. The thing is that stressing out won’t get you any where. You need to make a decision with all of the facts in mind. Going into debt sucks and so does putting your business entity out of commission. You must consider these thoughts, but you can’t let them consume you.
What’s the best case scenario?
We know that using debt to grow your business can ultimately put you into debt. What about the reverse? What if your decision to grow your business turns out to be a positive one? Your business can hit an all time record in profit and you could eventually quit your full-time job. I personally like to compare the best case to the worst case when it comes to investment decisions. Does the best case scenario far outweigh your fears?
How badly do you want to grow your business?
At the end of the day you must think about how badly you want to grow your business. Is it a side-business? Is this something you want to turn into a career down the road? When I first started blogging I really started to become addicted to it. I wanted to grow my blog so badly that I would do anything. I paid for blog consulting services and I took advice from anyone that was willing to share any tips with me. It all really depends on how badly you want to grow your side business. Some people either hate their current job so much or are so passionate about their business that they will do anything to make it grow. How bad do you want it?