When everything about your business idea is right, but your poor credit history is getting in the way of accessing the capital you need to get it off the ground–what can you do? You can get angry and give up on your dream, or you can get strategic and do something about it.
1. Seek credit counseling. Nonprofit consumer credit counseling agencies exist in every state. These agencies can help you get your poor credit back on track by helping you develop a realistic plan for eliminating debt. To locate a service near you, look in the Yellow Pages under “credit counseling.” The National Foundation for Credit Counseling offers online counseling, tips for selecting a credit counseling agency and other helpful resources.
2. Get a job–any job. Take advantage of every opportunity to earn money, even if it means taking a job that you’re not wild about. Remember, it is not a life sentence; it is a way to achieve your dream. Every dollar you earn will bring you closer to your goal.
3. Set a goal for saving the capital you need and STICK TO IT. Establish a clear timeline for saving the money you need. Plan your spending by developing a personal budget.
4. Keep track of your spending habits and look for ways to eliminate unnecessary expenses. Instead of eating out, cook macaroni and cheese. Don’t renew your subscription to that magazine you never have time to read. Cancel your cable television services. The sacrifices you make today will scarcely seem like a hardship once you are a business owner.
While you are in the process of repairing your credit, keep your eye on the market and stay abreast of what’s happening in your industry. That way, once your financial position improves, you’ll know how and when to launch your business. Remember, Rome wasn’t built in a day.