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Can You Start a Business if You Have Debt?

If you’re in debt, probably the last thing on your mind is to start your own business. You’d rather seek employment, no matter how small the salary is, and rebuild yourself financially until you can afford to start a business.

But that’s not always the case with everyone. Some people actually started their business without huge capital. Despite the odds, they were able to succeed. One particular example is John Paul DeJoria.

A true rags-to-riches story

John Paul DeJoria is the co-founder of John Paul Mitchell Systems, which is one of the largest hair care companies in the world. DeJoria’s current net worth is $2.6 billion.

When he was a child, his family was so poor that he had to sell Christmas cards in order to support them. When he found out about the hair care industry, he took out a loan of $700 to start his business of selling shampoo. He sold his products door-to-door, hoping that someday people will recognise his brand and make him a household name in hair care.

As of 2015, John Paul Mitchell Systems is worth $1 billion, making DeJoria one of the most successful rags-to-riches stories. So, even if you’re stuck in debt, you can still start your own business and make it grow just like what DeJoria did.

Start low

Before you start your business, take time to speak with an attorney and ask about legal services in Townsville, if that’s where your company is going to be. You should know what documents you need to take care of before you start operating your business.

After you’re done with that, the next thing to do is to think of a business that doesn’t require a huge capital. Think of a business you can start in your apartment or garage and work your way up to expanding it once it starts to profit.

So don’t think just because you know a thing or two about the oil industry, you should try to put up an oil-drilling business. Instead, think of what you know about the oil industry and look for certain aspects of it that you can do on a low budget.

Use the internet

female entrepreneur with a new online business working from home

The internet is a very useful tool to building a company from scratch. If you’re stuck in debt and you want to start a business, the internet will become your best friend because you can open a business without breaking the bank.

You can build your own website for your business. And you don’t even have to study how because sites like Wix, Joomla, WordPress and Shopify have templates you can use to build a website in an instant.

After you’ve built your website, you can start advertising your products or services through your own site and social media. If you raise your presence in social media, you’ll be able to sell more products without spending a lot.

Once your business takes off, save a few of your revenue to investing in your business to help it expand further. Once your business becomes bigger, then it’s time for you to pay off all of your debts and be financially free.

Once you’re financially stable, you’ll be able to reap the rewards of all your hard work. So, rebuild yourself step-by-step and eventually, you’ll have a successful company that you started while you were deep in debt.