A quick thought about using Credit Cards to finance your business

I’m a member of a small business discussion group, and post there often. Once in a while, I’ll repost one of my posts here in the blog if I think my audience will be interested. This is one of those times.

There was a question asked about financing a business with credit cards. The original poster (who doesn’t own a business – just saying that for context, not to disparage her) stated she wouldn’t feel comfortable doing this. That’s probably a fairly smart attitude for most, but it goes against what I feel makes a successful business owner.

Here’s my reply:

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Not to sound negative or disparaging to those that won’t do this, but I think part of what makes an entrepreneur successful is that willingness to fly without a net. That includes quitting jobs, that includes using savings, that includes taking on debt.

There are millions of people out there that would “like to” start a business and/or work from home. However, they say things like “but… right now, I have x and y, and my job is good….. maybe someday”. That’s all well and good, but those people will never start businesses. They want it to be safe and foolproof. They don’t want risk. They may fool around with something part time someday, but that’s about it. Business isn’t “safe”. There is no good time.

I quit a good job and financed my first business on credit. I was 24 or 25. It failed, and I was left with maybe 10k in CC debt. I eventually paid it off, quit another job (or got fired… same thing) and started another business. That one didn’t work either. Left with maybe 4k in CC debt. Paid it off, got fired again, used CC a little, and here I am, nine years later.

I always knew I’d succeed. Knew without any doubt. Thus, taking on debt didn’t bother me.

I know I sound very black and white here, but I think that’s what you need as an entrepreneur. If one is adverse to risk, one should not work for themselves.