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How to Start a Small Business


Published reporter, Juliana O., reveals what steps you need to take in order to have a successful business plan and how to execute it. There are many risks involved when starting a new business and we recommend you follow the advice of those who are knowledgeable and skilled in the field. Expert entrepreneur and Certified Public Accountant, Howard Dvorkin, shares his personal experience of starting one small business in a janitor’s closet and growing it into several nationwide companies that provide consumers with professional financial solutions.

Reviewing your business plan and weighing your options will help you make the right financial choices before rushing to take out a loan.

Video Transcript

How to Start a Small Business and the Secret to Making it Successful

So, you’re thinking about starting a small business.

Well, there’s a lot to consider.

One expert who has started no less than a dozen businesses says there’s something major most entrepreneurs forget, themselves. Entrepreneurs tend to fixate on their business plans and their financial statements, but they often neglect their own personal financial statements. I’ve been a CPA and a financial counselor since before the millennium and i can tell you if you can’t manage your own money, it’s very unlikely you’ll be able to manage the money of your new business. Today we’ll dive into why experts like serial entrepreneur Howard Dvorkin recommend you get rid of debt before starting your small business and how you can make it happen. What if you don’t want to wait until your personal finances are in order can you still start a successful small business? We’ll talk about that too. Now, let’s dive into the facts. 76 percent of entrepreneurs use personal savings to finance their small business according to Bank of America’s 2016 small business owner report and their 2021 report revealed 48 percent of business owners tapped into their personal savings just to survive the pandemic. A pandemic is just a very tough time to not only start a business, it’s a terrible time to try to seek funding for that business. Even before the pandemic, almost every entrepreneur I’ve ever known has kicked in some of their own money. You sort of have to because if you’re supposed to convince others to invest in you, you should be putting your own money there too. Something to keep in mind, it takes on average two to three years to make a business profitable. The reason is simple, you spend a lot before you earn a lot. First there are startup costs like equipment and permits and even office furniture. Then there are those continuous expenses like marketing, rent and loan payments. So those who enter the new business venture with a lot of funding and low expenses will be profitable quicker than those who have high expenses and very limited funds. With no profits coming in, it’s better to rely on personal savings than to dig the hole deeper by taking on additional funding from outside sources. When I started my first business in the 1990s I was careful about every dollar. I didn’t want to be beholden to anyone, so I started at my kitchen table and then from there moved into my first office which happened to be a converted janitor’s closet. I had no debt and some savings and I knew that it would take years before I turned a very healthy profit.

I definitely don’t believe in faking it till you make it. That’s kind of stupid that can lead to wasting money on fancy offices office furniture and lavish business expenses that others may think that you’re more successful than you are. That feeds your ego but it really bleeds your bottom line. Sure, you can try to get rid of the debt yourself but why not save yourself the trouble of calculating the fastest route to take when experts like those at can direct you to the people who can give you turn-by-turn instructions. is a consumer website where you can find help with credit card debt, student loan debt, back taxes credit repair and more. Our experts work with vetted and certified providers that can give you the best advice and solutions to manage your debt realistically depending on various financial factors. Becoming debt free can take some time but starting off your new business venture with thriving personal finances will help you out in the long run.

But let’s say you don’t want to wait. You have debt and bad credit but you also have this amazing business idea you can’t wait to bring out to the world. Can you still start a successful small business even though you have debt and no personal savings. If you’re
overwhelmed by personal debt handle it like you would handle your business. Seek out professionals. There are experts who specialize in quickly reducing your personal debt using proven techniques like debt settlement or debt management. I built to do just that. You’ll get a free debt analysis with just one phone call. You’ll speak to a debt expert who will drill down on the details.

But if you want to move on a business idea right away there are alternative lenders but be very, very careful. If getting a loan from a traditional bank or credit union isn’t an option for you because of a low credit score, there are still lenders out there who are willing to help. Alternative lenders like online lenders offer specific small business loans in cash option for those with bad credit. Like with any loan, there are risks you have to be willing to take like accepting high interest rates or putting up collateral to name a few. There is risk involved in any business loan, but alternative lenders narrow your opportunity simply because they charge so much. You might be better off trying to crowdfund or asking a family member or even friends to invest in your idea although I’ll warn you that family and friends must clearly understand the terms of their health. The last thing you want to do is fail at your business and fail at your personal relationships. Once you get the business running and have some revenue to present, more funding may become accessible to you but first you need to get the funds to get your small business into the world.

So to recap, can you start a business with debt no personal savings? It’s not recommended but where there’s a will there’s a way. For more news and information subscribe to’s YouTube channel and if you need help getting out of debt or have questions visit today.

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