Tips for Success in Owning a Business Without the Need for Debt – Many people have business ideas but are hesitant to run them for fear of failure with limited capital. Actually, to have a business you don’t have to have big capital, you just need confidence and good planning.

Businesses can be started with limited capital without having to apply for loans to banks, cooperatives or other financial institutions as long as you are serious about managing and dealing with their financial conditions.

If you already have a good business idea, make it happen immediately. Then what about the capital? Here are tips for having a business without the need for debt.

1. Mature Plan

To start a business with minimal capital, you must have a really mature plan. The plan does not only consist of what business you will undertake, but all matters related to business must be well planned.

Make sure you choose a business that has great opportunities and can grow. Do not choose a business that is just mediocre.

After determining what business, also determine where you will start the business, when, and how to implement it. Then plan how much capital you need to start the business.

Who will run the business also needs to be planned and how you manage your finances must also be carefully planned. Will you work alone, pay someone to do it, or use an app that can help.

2. Take advantage of Savings

If you don’t want to go into debt when running a business, take advantage of your savings as business start-up capital. This savings can be used to open a small or micro business.

When you use savings, don’t waste all your savings as capital because you need to have a reserve fund just in case. When the business has started to grow, you also need to return the savings.

3. Pre-Order Payment System

If you have a product that is very popular but has limited funds, you can first show a sample product visualization and ask interested consumers to pay 50% of the total price.

This is a form of commitment to obtain the product through a pre-order (PO) system. With a 50% payment for the goods/products that you will offer, indirectly you already have additional capital to produce these goods without having to go into debt.

4. Set Income

The next tip for starting a business without debt is to set aside income from a business to increase capital. Many entrepreneurs find it difficult to develop because they forget to set aside profits so they are forced to go into debt to increase capital.

If you want your business to grow without going into debt, then the smart step to have is to manage business finances well. Set aside 40% of profits to increase capital and grow the business, don’t spend all profits for personal use.

5. Looking for Business Partners

If your business is already running but lacks capital, don’t immediately think about seeking debt, but try to find a partner who is willing to invest in the company you manage.

A business partner will help you increase your business capital without having to go into debt and be able to bear business risks together.


But what must be understood when having a business partner is that the results obtained must also be shared according to the amount of capital owned. To be able to share profits and know financial reports well, of course you need an easy, fast and accurate accounting recording system such as a journal.

Hello, my name is Laura Keyhl usually called Laura. I am a professional writer on several sites, one of which is this blog.

Leave a Comment

Alvaro - Cloud Hosting and Domain Blogs