Be realistic and avoid debt issues when starting a business, claims expert
- Monday, 8 February 2010The need for
debt management among business owners can be minimised if people plan ahead and are realistic about when they will start to bring in money, according to one expert.
Business Link adviser John Grange said many new businesses can struggle when they fail to appreciate how long it will take before they can begin receiving an income, and often do not have enough working capital to start with.
People had to be realistic to avoid the risk of debt-related issues, said Mr Grange.
"Take your rose tinted glasses off in the beginning and make sure you understand how much it is going to cost you to start your business," he said.
"Before you start your business, talk with enough people who will give you an honest assessment of [whether] it is a good idea."
Mr Grange's comments follow reports from the Consumer Credit Counselling Service (CCCS) stating there is a serious debt problem among self-employed people.
The charity's debt helpline received 739 calls from those running their own business in January, a 78 per cent increase from December 2009, when only 415 self-employed people rang in.
