by TR_OK, Contributor
- Created: March 26, 2009, 12:53 pm
I think it's time that the government stop using the availability of debt to measure success; I also believe it's time for American's to move away from the 'gotta have it now' mentality- including small business owners and entrepreneur's in the making.
Yes, a business can be started without debt. Yes, it will take longer and grow slower. Yes, you will be better off in the end.
Taking on debt dramatically increases the pressure on a business to succeed. It encourages businesses to grow too fast too soon (What good is a $100,000 in equipment and no customers or filling 2,000 sq ft with inventory there is no demand for?).
I would encourage entrepreneurs to think big but find a reasonable way to get there. Maybe you need to spend a few months working an extra part time job to build up cash reserves before diving into your own business. Maybe you need to start the business 'on the side'.
Most small business owners want to be their own boss, but the second they borrow the become slave to the lender- forced to make sales figures that allow the bank to be paid back, keep the lights on at home and pump money back into the business. This pressure forces poor decisions and makes for desperate owners- and no one wants to do business with a desperate company (except the government it seems).
I hope a discussion can follow about ways to start and grow debt free. I don't think it's unrealistic, do you?
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