Starting & Maintaining a Debt-Free Business

 Hey Friends!

Today on the blog, I'm chatting about how we started and ran two businesses, debt free. Like many, we are no strangers to debt when it comes to searching for the magic business that will bring us the American Dream. We've owned a total of 4-5 businesses over the course of our marriage and learned a lot with each of them.

Today, however, not one but two of those businesses have been successful & debt-free.

Let's chat about some of the benefits, challenges, tips and the importance of basic skills. However, the main takeaway is Disciplined Financial Management. Also, don’t be afraid to shop sales & used items for your business. No shame in that game!

Our Strategies

We Started Small

When we started our businesses, we didn't want to invest in all the things at one time. We started with a (MVP) which is a minimal viable product, which allowed us to adjust our business model based on customer feedback.

We Reinvest

Once we began generating income in our business, we reinvested our profits back into the business to start scaling. This strategy takes longer but ensures we're in financial control.

We Maintain a Savings

We started our debt free businesses based on financial advice from Dave Ramsay. Along with our savings account, we also keep budget envelopes with extra funds for unexpected business expenses and/or opportunities.

We Have Financial Control

We implement strict cost-control measures to keep expenses low. In one of my last Facebook posts, I talked about how we repurposed the grow lights we used the last 4 years and put them in the Farm Stand. Do they look their absolute best? No but they serve the purpose.

We're Always Offering Something New

We offer a variety of different products and focus on the creativity behind them. Whether it's baked goods, jarred goods and more. Keeping our offerings fresh and new allows us to explore different revenue streams.

Benefits

We're Financially Stable

This is a big one, y'all. We can't stress enough the peace that comes with having a debt-free business. The reality of any business is there's slow sale - no sale days. The beauty of being able to accept those slower days is not having any major bills in the business, along with a passion for what you do. If you don't have a true love and work ethic for your business, you will hate the journey whether you owe on it or not.

Of course, this can play a big role in your personal finances too, especially if you're depending on the money for home bills, etc.

We Have Increased Profitability

Since we don't have any loan payments, more of our revenue can be reinvested in the businesses or collected as profit.

We Have Flexibility

Having a debt-free business allows for more quick decision-making, as we are not tied down to by debt obligations. Currently, we are shopping for decor. Not owing anyone allows us to take a quick trip to Hobby Lobby, on a random Thursday, to shop sales for the Farm Stand.

Challenges

As with anything, there's challenges. Even with debt-free businesses

Growth Takes a Minute

We don't get any outside financial help for the business, so our growth is a little slower. We try to utilize as many free marketing tools as possible, so it takes extra work ethic on our end to grow.

Our Resources are Limited

In addition to using free marketing tools, many resources are out of reach for us because of monthly cost, that we choose not to invest in. 

Pressure from High Expectations

Since we don't take out loans to produce products, the pressure to generate revenue can be overwhelming. For example, many of my herbal products are made with homegrown herbs, which customers love, but sometimes when the garden doesn't grow or certain ingredients aren't readily available, it's a little more stressful to provide products that are up to our standards.

Advantages of Basic Skills

We can't stress enough how basic skills can help you excel in any business. If it were not for my husband having mechanical, electrical and plumbing (and more) knowledge, our businesses would have been a very expensive journey. His level of knowledge in these trades has allowed us to take the time to build our businesses without having to invest in companies to do it.

In addition, my marketing skills tremendously help us grow our business by allowing us to look creatively professional.

I hope this post helps some of you achieve your dreams without being in debt. It's possible but it takes a lot of self-discipline.

Read our other Blog Posts here:

Homeschooling Series

Gardening