If you have ever dreamed of or began the process of starting a business, you know how daunting it can seem. No matter what industry or niche you’re going into, the concept of turning your idea into a profitable and sustainable business takes a lot of time and serious effort.
That’s why it can seem nearly impossible for those who are paying back student loans to turn around and invest money into their startup. After all, why go into more debt for something as volatile as your own business idea, especially when you can get a more dependable job instead?
Some potential entrepreneurs will be seriously deterred by these kinds of thoughts. Some will ditch their startup altogether and focus on paying back student loans while their dream sits on the backburner.
Others might look at their financial situation and decide to put in the extra effort to make their startup dream a reality, no matter the obstacles. For those who fall under this category, here are a few tips on how to pay back student loans while getting your business rolling.
Make your debt work for you
Many graduates see their student loans as a heavy weight sitting on their shoulders. But there are those who realize how to turn debt into a gain. You could decide to take out a business startup loan, refinance your business or consolidate the loans you already have. These are all options to consider when starting a business.
As David Klein, CEO of CommonBond reiterates, “Looming student loans make the leap to entrepreneurship very difficult, [but] those determined to do it can figure out how.”
There is more than one way to reach success, and there are always options available to those who want to pursue their dream while paying back student loans.
Build your team
As the old African proverb says, “If you want to go fast, go alone. If you want to go far, go together.”
It’s true that in order to achieve lasting success, we often need to build a strong team around us. Even if your business idea involves only you and a laptop in order to function, consider taking time to prioritize any networking options available to you. Now more than ever before, it truly is about who you know, not what you know.
By focusing on your strengths, you can isolate any areas of weakness that suck up time and energy. Choosing to outsource these tasks will not only free up your time to focus on what you do best, but you will be less likely to feel burnt out from your business at the end of the day. Accepting help opens up opportunities for growth, which will make paying back your student and business startup loans that much easier.
Work hard and spend wisely
In order to make money, you often need to spend money first. But amid juggling your finances, paying back student loans and gathering resources for your business, remember that one of the best ways to increase profit is to cut back on unnecessary purchases. Small, mindless transactions occur on a daily basis. They can seem insignificant at first, but add them up over time, and it’s easy to see how buying that delicious Frappuccino every single day might not be the best idea.
It’s also important to remember that, for the first few months, or even years, you and your startup will be spending a lot of time together; more time than an average 9-5, and definitely more time than a hobby or passing interest. A business will need your near-constant attention and your undying devotion in order to survive long-term.
So before you invest in this idea, sit down and be really honest with yourself: do you want this badly enough to make the necessary sacrifices? If the answer is yes, then use these tips on how to pay back student loans. Your student debt does not need to be the thing that stops you from achieving your dream.