August 16, 2013

Starting an Online Business When Youíre in Debt

published this at 9:56 am

By Julian Hills

So you want to start an online business?

Startups have a positive effect on the economy. A recent article from the Consumer Financial Protection Bureau found that each new startup added about 5.3 new jobs over the past decade.

Thatís a good thing, but financial fears may be putting a drag on that statistic.

In the period between 2007 and 2010 ó the height of the recession ó the number of startups fell by 23 percent. The economic climate caused many would-be entrepreneurs in the technology sector to defer their dreams, specifically because of rising student loan debt. Student loan borrowers have lower credit scores than peers with no student debt.

Thatís not such a good thing.

Knowing how to manage your resources and using a little creativity could be the key of starting a business while mired in debt.

Private loan borrowers can see if refinancing at a lower interest rate is an option.

The Small Business Association has an entrepreneurial help program called Startup America. Itís a partnership between the public and private sectors aimed at expanding access to startup capital, increasing education, encouraging collaboration between big companies and startups and reducing red-tape. Find out more about the program at their website: http://www.sba.gov/startupamerica.

Sometimes it takes loads of money to start a business, other times it may just take a laptop. Figuring out what you need or donít need can trump what you see as limitations caused by debt.

Author’s Bio: Julian Hills is a content writer and blogger for Debt.org. His journalism career has taken him from newspapers to local television news stations and even a 24-hour cable network in the Southeast. Julian is a graduate of Florida State University who enjoys finding new ways of saving money for football season tickets.
Sources:

http://www.consumerfinance.gov/blog/starting-a-small-business-when-you-have-student-debt/

http://smallbusiness.chron.com/start-business-one-debt-2061.html

Filed under SOB Business, Successful Blog | 1 Comment »


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1 Comment to “Starting an Online Business When Youíre in Debt”

  1. August 20th, 2013 at 2:20 am
    thewebout.com said

    Great article its especially relevant in the current economy. i agree on the point you make about not piling on more debt people have a tendency to go for broke and they might just end up there

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