When you are facing debt of any size it is sometimes difficult to see how it is feasible or responsible to make changes to your income that could put repayment at risk but there is a way to reconcile the two and still be able to rest easy at night. Would be entrepreneurs are putting off their dreams of being their own boss because of the traditional path set for them by society, get creative and find some loopholes that will allow you to manage the risks of a startup as well as your existing financial obligations.
While it’s important to take out student loans with a private lender in order to pay for your education in order to gain the knowledge and experience to be successful, but are you familiar with you options to repay those loans once the repayment period begins? Starting here and learning about how phrases like, consolidation, refinance, alternative repayment plans will give you a good foundation of information when you are evaluating if you can move money into your startup, and exactly how that might have to look for your overall budget. Making your existing debt more manageable will free up funds that can be put towards your startup.
If you are not open to changing the terms of your student loans from a private lender, consider making some personal sacrifices to create cushion in your budget and give you access to your own money. Startups do not have to be all or nothing and if you feel more comfortable with a slow build style for your business, there is nothing wrong with that approach. You can keep your full-time job and develop your dream during your evening and weekend time to maintain a consistent income during the early phases of your business. Examine where your extra money goes each month and see if you can edit out some of those luxuries to put that money towards your business. Sacrificing a vacation or two now might seem too undesirable to fathom but it can mean big financial gains towards the development of your startup.
Developing a Partnership
Depending on the nature of your startup, you might know a peer, or coworker, who has the same interests and drive on that subject matter that you do. Think about the pros and cons of adding a partner to your business plan. This will alleviate the totality of the financial burden from your shoulders and could give you a chance to get things going earlier than you would as the only investor/creator. Be advised of the cons that are associated with business partnerships also though so that you can make an educated decision that feels purposeful instead of a hasty one that feels like a shortcut. Bringing in someone else to your entrepreneurial wheelhouse will be a challenge, which can be a benefit and provide you with a sounding board for ideas, and ideally someone to balance out your weaknesses with their strengths. You must be comfortable knowing that full control will not be yours though, and welcome that.