A recent report has revealed a concerning trend between rising student loan debt and the number of new small businesses. Still being validated, the data suggests that the burden of student loan debt in today’s economy is leading to fewer people starting businesses.
Many young adults have dreams of being their own boss and paving their own path in life. With such a huge aspiration hanging in the balance, what is to become of their futures if the burden of student loan debt is preventing them from executing their dream? While it may seem like executing this dream is difficult nearing impossible these days, here are some ways to make it happen:
Stay and pay — Sure we would all love to jump from the graduation stage to CEO of our own company, but this really isn’t realistic for most of us. Instead of focusing on saving money for your start up right out of college, take advantage of that steady paycheck to get into a good rhythm with your payments. Nothing spells trouble like not understanding just how much of your monthly income will be used for your student loan debt payments. Adjust to your income and budget first before you start socking away for your big day.
Start slow — Most successful start ups didn’t just appear overnight, they are often the product of years in the making. Working a full time job and spending your evenings and weekends focusing on building your product, service, or brand is a great way to iron out all of the kinks while still collecting a paycheck. Further, the less debt you have and more money you have in the bank from taking the time to develop your business model may just be the difference in getting approved for that small business loan to quit your job and really make a go at your business.