new business goin into debt before I have even begun

monster1

monster1

monster1

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Joined
1 Oct 2008
Posts
1
hi,

my name is katie recently i started a new business ,a new adventre and I remember a friend giving me a bit of advice learn to walk before you can run i wished i listened now. I just went full steam ahead bought all the equipment I needed and didnt need, put a lot of money into new contracts etc and basically I just spent , spent, spent. I have got three credit cards almost to their limit, a big loan and I am starting to panick I dont know what to do.
 
Is your business a Limited Liability company? If not it should be, and transfer as many debts to it as possible - then if it goes insolvent your creditors cannot reposses any of your personal belongings.

My overall advice would be to get a good accountant.
 
Try a business forum.

As an aside, most businesses have immediate debt when they set up. Start doing some business and get some money in.
 
At the start is the most likely time a business will be in debt. In fact, I can't see how a business couldn't be.

What is your business out of interest?
 
Your first step should indeed be sticking it all into an LLC so that you dont get bitten personally, your second step should be actually trying to make money, every business is in debt before it starts unless they have some sort of massive investor input.
 
You're only starting to panic?? You've spent without research, you've bought without credible requirement... you're up **** creek :)

Go to CAB.
 
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