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3 Empowering Tips for Prospective Entrepreneurs Recovering From Financial Setbacks

Updated: Oct 11, 2021

Starting a business isn’t cheap, as common startup expenses include everything from office

space and registration fees to business inventory and marketing. And when you’re recovering

from financial setbacks in your personal and/or professional life, you may not have access to the financing or savings needed to pursue your entrepreneurial dreams.

With these three tips from business coach Jazmin Guerrero, you’ll learn how to turn your

dreams of starting a business into a reality — whatever your financial situation may be. It may not happen today, tomorrow, or even this year, but with a bit of budgeting, side hustling, and learning, you’ll feel more empowered to get there when the time is right.

1. Cut Personal Expense

Before delving into entrepreneurship, you’ll need to reduce your personal spending as much as possible and take steps to improve your credit score. Christy Bieber of The Motley Fool

recommends tracking your spending, creating a budget, and canceling any unused or

unnecessary subscription services — as this will help you to spend less and save more. It’s also important to monitor your credit report, make timely payments, and keep all credit card balances low.

Once you’ve reduced your personal spending and improved your credit score, there are certain types of loans you may qualify for when starting your business. Known as bad credit business loans, these financing options are typically available to aspiring entrepreneurs with lower credit scores. However, business credit cards are another viable financing option when launching a startup.

If you’ve taken steps to improve your financial situation but are still having trouble obtaining the financing you need to start your business, there are some other options worth considering:

  • Ask a trusted friend or family member to co-sign on your business loan.

  • Have a business plan written and ready to go when applying for business loans.

  • Look into low-cost business ideas.

  • Launch a crowdfunding campaign on platforms such as SeedInvest Technology.

2. Start With a Side Hustle

Risk-taking is scary, especially when your occupation and financial future is on the line. And

when you’ve experienced past financial obstacles, quitting your day job to become a full-time

entrepreneur may not be practical or even possible. However, this is where starting a side

hustle comes in. You can pursue entrepreneurship from home while continuing to work full-time during the week. Startup Nation notes this is entirely possible, but it’s critical to fully commit, and at the same time it’s critical to keep your goals realistic.

3. Get a Business Degree

If you’re still on the fence about pursuing entrepreneurship, it might make sense for you to

further your education and build your business acumen before moving forward. By working

toward a master’s degree in business administration, for instance, you’ll learn how to manage

and lead others, self-assess, and build skills in self-awareness and business strategy. Plus,

accredited colleges such as Western Governors University (WGU) offer affordable, online

Final Thoughts

The road to entrepreneurship isn’t a simple, cheap, or straightforward process, and it's even more of a challenge when you’re recovering from one or more financial setbacks. However, most businesses don’t flourish overnight — and you shouldn’t give up on your entrepreneurial dreams just because your credit is low or you’re recovering from a financial disaster.

By going back to school to develop your business acumen, starting a side hustle while keeping your day job, and improving your financial situation, you’ll be better prepared for the challenges of starting, running, and growing a small business. Don’t let your financial setbacks keep you from pursuing your dreams: Take charge of your finances and move toward your entrepreneurial goals!

Are you ready to take your business to the next level? Connect with Jazmin Guerrero today.

Whether you choose group consulting or 1:1 coaching, Jazmin can help you achieve growth in your business and personal life. Reach out today!

Credits to Gloria Martinez started to celebrate the advancements women have made and inspire them to become entrepreneurs and seek promotions in the workplace. Through this medium, she also shares her business expertise and vision to spotlight women’s achievements in the workplace.

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