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Funding A Business: Handling Debt With Confidence And Clarity

There’s no question about it: if you’re running a business (or thinking of starting your entrepreneurial venture) then debt is likely something that’s on your mind.

Handling Business Debt

Some financial experts (like Suzie Orman, for example) will advise that you save a year or more of expenses before starting your business. Now, I’m no financial advisor but if I — and the hundreds of women I’ve coached to be successful in business — followed that strategy, we wouldn’t HAVE any businesses!

Businesses are traditionally started and grown on loans, and your entrepreneurial venture is no exception. And this can be a positive reason to create debt.

Whether you’ve borrowed money from a family member or from your savings accounts or you’ve used your credit cards to fund the startup and growth phases of your business, a growing business needs working capital.

When I first started my business I relied on money from the recent sale of my then-house to cover my bills while I learned how to market my services.

While there are many reasons that it can make sense to create debt for your business, for most women, it can stir up feelings of guilt or failure. Beneath the surface that guilt is tied to self-worth and this can chip away at your confidence in making choices about where and when to invest in the growth of your business.

It’s important to remember that debt, like money, is just another mirror of how much you believe in YOU. The main point is not whether or not you have debt, but how you handle it. Here are some of my top tips for handling debt with confidence and clarity:

  • Tip #1 – Begin By Forgiving Yourself

In almost every case, debt was created for reasons that felt right and necessary to you at the time. Rather than blaming yourself, be honest about what your reasons were, the underlying emotions that were influencing those reasons and what you were trying to achieve with your purchases. And then let it go.

Next, rather than wasting time agonizing over the past, put your focus on taking action and begin reducing the debt. Every time we make choices from this empowered place, we strengthen our heart and spirit to continue taking positive, proactive steps forward.

  • Tip #2 – Have a Plan for Repayment

Debt has a way of creeping up behind the scenes until one day it suddenly feels like it’s looming over us. If you want to be debt-free with confidence, you need to be willing to look at it with honest eyes.

The best way is to make a repayment plan. Not only will this help you to feel more in control, it puts you in the driver’s seat of your finances overall. From here you can make informed, conscious choices about money and investing in your business because you’re able to see the entire picture.

If you decide to take on new debt, start with a plan for repayment right from the beginning.

For example, if you’re borrowing to invest in a training course or in mentoring, I recommend “tithing” the new income you’ll be making and applying a percentage of your new earnings towards paying back the amount borrowed.

Viewed in this way, creating debt is an investment in YOU and in your business. Using this strategy you’ll be able to quickly pay off the amount borrowed, making it a wise and valuable investment that will pay you back in increased income for years to come.

  • Tip #3 – Don’t Shy Away From Creating Appropriate Debt

This is the time to trust yourself and be willing to keep moving toward your dreams.

Freezing with fear about creating debt is a mindset that will start to seep into other areas of your life and business. Being stuck is not a place from which much gets accomplished, including actions that will bring in money.

You’ll feel more confident in your financial decisions if you’re willing to use your intuition. This is a Divine Feminine gift we all have (women and men) and you simply need to begin tuning in and trusting it to support you in how you grow your business.

Remember that you must invest in yourself and your business if you want to grow!

If you resist, fear, ignore, or go into panic over debt, you’ll find a similar pattern appearing elsewhere in your life. Instead, focus on investing in smart ways to help grow your business.

From this new and empowered place with money you’ll quickly find yourself generating the kind of resources and income you’ve dreamed of!

Would you like to learn more simple ways entrepreneurs can brand, package and price their services to quickly move away from ‘dollars-for-hours work’ and create more money, time, and freedom in their businesses? Check out my web site,, for free articles, free resources and to sign up for my free audio mini-seminar “7 Simple Steps to Create Your Multiple Streams of In-come “Money and Soul” Business. Award-winning small business expert Kendall SummerHawk is the Million Dollar Marketing Coach.

Image: David Castillo Dominici /




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