Small Business Today Magazine MAR 2016 AMERICAN SERVICES - Page 14

EDITORIAL FEATURE Funding a Small Business without Credit Cards By Margot Fuentes, LiftFund Business Advisor A s a small business owner, you should be your own boss. Don’t let credit card debt boss you around. Writing a solid business plan before launching a business could be the difference between living the American dream and experiencing the nightmare of unmanageable credit card debt. Before using your credit cards, spend time determining which expenses are essential and which can wait until your business has grown. Consider all your options for funding sources. Have you thought about borrowing money from friends and family, dipping into savings, bringing on an investor, or using crowdsourcing? You can combine any of these with a small business loan to achieve a varied fund- ing plan that will allow you to avoid maxing out your credit cards at high interest rates. Weighing your personal financial situation against startup expenses, including rent, utility deposits, and inventory purchases is imperative. You might need to consider scaling back your business model until you’ve proven there’s a market for your product or services. People sometimes think they need to have over $100,000 in capital to start a small business. You can put yourself at higher risk if you take on large amounts of debt before gaining customer traction. »Continued On Page 24