MENUMENU
  • About Us
  • Business Insurance
        • General Liability Insurance
        • Workers' Compensation Insurance
        • Commercial Property Insurance
        • Errors & Omissions Insurance
        • Cyber Liability Insurance
        • Hired and Non-Owned Auto Liability For Small Business
        • Directors & Officers Insurance For Small Business
        • Key Person Insurance For Small Businesses
        • License Bonds For Small Businesses
        • Fidelity And Surety Bonds For Small Businesses
        • Employment Practices Liability Insurance For Small Businesses
        • Excess Liability (Umbrella) Insurance For Small Business
        • Professional Liability Insurance For Small Business
        • Media Liability Insurance For Small Businesses
        • Commercial Auto Insurance
        • VIEW ALL
  • Employee Benefits
        • Group Health Insurance
        • Group Dental Insurance
        • Group Vision Insurance
        • Group Life Insurance
        • Group Short-Term Disability
        • Group Long-Term Disability
        • VIEW ALL
  • Who We Insure
  • Resources
  • Blog
Get A Quote
Log In
Get A Quote
Log In
888-242-4675
MENUMENU
  • About Us
  • Business Insurance
        • General Liability Insurance
        • Workers' Compensation Insurance
        • Commercial Property Insurance
        • Errors & Omissions Insurance
        • Cyber Liability Insurance
        • Hired and Non-Owned Auto Liability For Small Business
        • Directors & Officers Insurance For Small Business
        • Key Person Insurance For Small Businesses
        • License Bonds For Small Businesses
        • Fidelity And Surety Bonds For Small Businesses
        • Employment Practices Liability Insurance For Small Businesses
        • Excess Liability (Umbrella) Insurance For Small Business
        • Professional Liability Insurance For Small Business
        • Media Liability Insurance For Small Businesses
        • Commercial Auto Insurance
        • VIEW ALL
  • Employee Benefits
        • Group Health Insurance
        • Group Dental Insurance
        • Group Vision Insurance
        • Group Life Insurance
        • Group Short-Term Disability
        • Group Long-Term Disability
        • VIEW ALL
  • Who We Insure
  • Resources
  • Blog
  • InsureYourCompany.com
  • Blog
  • Financial Advice
  • How to Start a Small Business When You Have Student Debt

How to Start a Small Business When You Have Student Debt

Dan Levenson October 10, 2017

How to Start a Small Business When You Have Student Debt
Financial Advice Growing Your Business

Around 70% of graduates leave school with some degree of student debt. With an average of more than $37,000 accepted as the norm for the Class of 2016, that’s not a debt that’s going to be paid off in the first couple of years in the workforce.

If you’ve always dreamed of starting your own small business, but you’re struggling to get out from under the load of student loan debt, there’s hope! You can start your company while carrying this burden—you just need to be practical and scrappy.

Start by Shifting Your Balances

Have you attended several colleges throughout the course of your education? Are you paying balances in several different locations? You can consolidate your student loans and possibly reduce your monthly payments as a result.

In some cases, you may also be able to embark on a program that will allow you to temporarily put off paying on your student loans while you get your small business off the ground. Keep in mind, however, that these programs won’t stop your student loan from accumulating interest, so it’s still critical that you take whatever steps you can to pay off those loans as soon as possible.

Boost Your Savings

Starting your own small business is a financially risky proposition with or without debt. If you’re successful, you have the potential to significantly increase your personal income. On the other hand, times may be lean for a while when you first start the business.

Before you jump in, make sure you have a savings account that will support you for at least three to six months. This is important before any major change in your income status, but it’s doubly important when you have student loan debt that you need to pay off.

Live Lean

If you genuinely want to get started with your small business venture as soon as possible, be prepared to live lean for the first little while. Starting this process as you’re building your savings is a great way to test your personal commitment and make sure you’re willing to live within your means while you’re building your small business.

This might include steps like:

  • Purchasing an older car that’s paid off
  • Living with a roommate for a while
  • Reducing your entertainment expenses
  • Avoiding eating out or purchasing expensive food items for the time being

Start Small

If you genuinely want to start a small business, but you’re not sure that it’s going to be successful immediately, consider starting your business as a side hustle.

You can start growing your client base and your income without giving up your current job. This will allow you to test the waters locally for clients, see how you like working for yourself, and offer a financial safety net at the same time.

Not only that, if you’re still working at your other job, you can put more of the money your small business generates back into the business itself, which can help it grow faster.

Make Sure You Know What You’re Doing

Your college classes prepared you for plenty of things in the business world, but there may still be some holes in your education. Before you start your small business, make sure you’re prepared. You need to:

  • Ask questions of trusted advisers—hopefully other small business owners who are willing to help you through the process.
  • Make sure you’re familiar with the financial side of running a business.
  • Develop a working knowledge of when to outsource.
  • Understand how to get help if you need it, whether it’s help with bookkeeping or answering your questions about networking.

Starting your own business is an exciting journey. Make sure you’re prepared for every aspect of it, then, even if you have student loan debt, dive in! It’s a process that’s well worth the effort you’ll expend.

One important part of preparing for your daily business operation is securing the insurance you need to be successful. Contact us today to learn how we can help set your business up for success despite the potential disasters that could try to stand in your way.

Small Business Plan Worksheet

Need business insurance?

Get a free business insurance quote today!

Subscribe To Our Blog

  • Stay up to date with the latest insurance news and business advice from InsureYourCompany.com!

Business Insurance

  • General Liability Insurance
  • Workers’ Compensation Insurance
  • Errors & Omissions Insurance
  • Excess Liability Insurance

Employee Benefits

  • Group Health Insurance
  • Group Dental Insurance
  • Group Vision Insurance
  • Group Life Insurance

Business Insurance

  • General Liability Insurance
  • Workers’ Compensation Insurance
  • Errors & Omissions Insurance
  • Excess Liability Insurance

Employee Benefits

  • Group Health Insurance
  • Group Dental Insurance
  • Group Vision Insurance
  • Group Life Insurance

Small Business Resources

  • Business Insurance Blog
  • Get a Free Insurance Quote
  • Schedule an Assessment
  • Insurance for Businesses 101

InsureYourCompany.com

225 Gordon’s Corner Road, Suite 1H
Manalapan, New Jersey 07726
888-242-4675
Privacy Policy | HIPAA Policy | Contact Us
Created by potrace 1.15, written by Peter Selinger 2001-2017

Copyright © 2022 - InsureYourCompany.com, powered by Technology Insurance Associates LLC

Custom website design and development powered by the New Possibilities Group.

888-242-4675
Get a free quote