It’s a loss to hesitate starting a business because you’re afraid of debt! Basically, you won’t incur debt unless you intend to.

When starting your own business, the one thing you're always consulted about is 'debt'. What if I fail and end up with a huge debt? Won't my life be ruined? You are always consulted about this.

To conclude, just because you're doing business,You don't necessarily have to take on debt. Rather, you can't take on debt unless you intend to.Most patterns of being riddled with debt occur precisely because of a lack of knowledge,either 'simple mistakes' or jumping in with that resolve from the start.Of course, there are quite a few people who jump in with the resolve that it's okay to take on debt!

Simply put, if you want to do business while avoiding debt,anyone can avoid it.Anyone.

This time, I will explain why you don't need to take on debt just because you're starting a business. For those considering starting a business or becoming independent, I hope to remove the fear that 'taking on debt will ruin my life,' so if you have the same concerns, please take a look.

Why does debt arise in the first place?

The reason for taking on debt is, naturally,when the money you have to pay becomes greater than the money you possess.It occurs then. Or, even if you borrowed money expecting revenue,the revenue that should have come in doesn't come in at all, and you can't repay it.There are also such cases. Initial debt usually falls into these two patterns, doesn't it?

In other words,if you control the amount of money you spend and don't borrow from anyone, debt fundamentally won't arise.Whether or not you take on debt you can't repay is, after all, your own judgment. Simply put, you just need to make sure the money going out is less than the money coming in. So why do people take it on? It's a strange story, isn't it?

That's because your judgment becomes 'sloppy'.

When starting a business for the first time, no one knows how much money will come in. Even if you have experience in the same industry, you won't know until you actually open the lid.

However, when starting a business for the very first time, a positive feeling of 'I'll do it!' takes precedence, and people tend to take on risks that could have been avoided, thinking 'If I fail, then so be it!' Driven by momentum, they brandish baseless confidence like 'It's definitely fine because profits will be this high,' and end up borrowing large sums of money, also without basis.

Your head is full of adrenaline, isn't it? Let's calm down for a moment.

You shouldn't make random guesses about money. If you think about it calmly, it's obvious. If you lack confidence, you should say so. Or, you should anticipate the worst-case scenario. If you are determined to take on debt, it's important to keep the amount to what you can repay by working, at worst.

Please calm down for a moment. There are countless ways to start a business without taking on debt.

Let's expand from what's within your reach.

Why do people, when it comes to starting a business,suddenly think about things in terms of large sums of money?They tend to think about things in a large framework right away, instead of trying to start with what's possible.

For example, opening a store. Developing an app. Hiring several people. In the first place, you might not even need to register a company initially.It's fine to operate as a sole proprietor,yet people deliberately start by registering. Naturally, if you try to launch at the scale just mentioned, you'll need close to 10 million yen from the start. And then, the funds quickly disappear.

First,don't rely on money. Create an attractive concept that can spread even without money.And,a business that can be done within your reach.Try to invest your time in it.A truly good and attractive business will catch people's attention, no matter how small the scale.

For example, suppose you want to open a restaurant that serves innovative dishes. First, try having people pay only for the ingredients and serve meals to everyone with your concept. If the food is truly delicious, it will eventually become a topic of conversation. When starting a business without funds and without fundraising, what's important is,not to do things on a large scale, but to create a concept or attractive service that becomes a topic of conversation even when done on a small scale.

If you have a business you're trying to realize with an app,First, please try it manually.I had an acquaintance who was planning to create an app for a service that guides foreigners visiting Japan. Since creating an app costs several million yen, we were discussing how to raise funds.

In such cases, instead of talking about millions of yen, you should simply post a message in English on your own blog saying 'Contact me if you need help'. Then, let's start by supporting foreigners in exchange for some money.If that service is good, many people will use it, and as a result, money will gather, and you will likely gather enough funds to create an app quickly.

If development is absolutely necessary, don't rely on others for development.Develop it yourself.You can do it if you try. Create a prototype and let everyone use it experimentally. If it's truly a good app or service, not only will people appear who will provide funding, but developers who will build it with you will also appear.

In America, there are examples of 9-year-old girls and boys starting by selling cookies and lemonade in front of their houses, and growing it into a business of tremendous value.Stop easily covering the lack of your own ideas with debt, and create a service that, even if small, attracts attention.

If you absolutely need money, try to find an investor.

Even so, there are ambitious people who still want to expand their business greatly and at a tremendous speed. In such cases,Try to find an investor.

An investor is someone who 'bets' on a business with you. They invest money in a promising business, hoping it will return as an even larger sum later. Since they are betting on their own responsibility,The entrepreneur has no obligation to repay the invested amount.If it fails,it simply means the investor lacked foresight.That's all there is to it.

However, since investors are also providing their own money, they won't easily provide funds. You need to properly explain the future prospects and potential of your business. If investorsfeel the future potential, they will provide the money.

However, there is also minimum knowledge that must be known when interacting with investors, but that will be for another occasion. There is a lot you should know about investing as well.If they are truly good investors, they will teach you various things as an advisor.

Also,They also invest on a corporate basis.This is called aventure capitalIt is a company that invests in other companies. If you are confident in your own business, look for opportunities to connect with venture capitalists and give a presentation. If successful, you can secure a large amount of funding.

Recently,crowdfundinga system called has emerged, making fundraising easier. It's a mechanism for publishing projects online and raising funds, so if you're interested, please look into it.

However, recently, many entrepreneurs decide to invest without even knowing about management or marketing, and they seem to run through tens of millions of yen in an instant. Try to be diligent in your studies, seeking advice from those around you. If possible, you'd want to seize the opportunity, right?

By the way, while it's called an investment,it's actually the same as a loanThere are many cases where it turns out to be. When receiving an investment, be sure to sign a contract and confirm it. Sometimes people receive money without signing any contract, but that is absolutely not allowed. It's a source of trouble. If you assume that you don't have to repay it just because it's an investment, you might later be told, "Hey, pay it back."

Also, be sure to carefully check the contents of the contract. You must confirm in detail whether it is something that does not need to be repaid, and what actual benefits the investor has, and what benefits you have. If you're not careful, there are cases where you worked hard to grow your business, but gained almost nothing yourself.

Be sure to thoroughly plan your response to troubles.

That being said, I think some people might worry that there could be various scary things if trouble arises. For example, if there's a failure, you might be sued for damages. If food poisoning occurs at a restaurant, it would be a big problem, wouldn't it?

When you start your own business, no matter how hard you try, troubles can arise. For such times,prepare in advanceLet's do that. Even if trouble arises,a mechanism that can somehow withstand itIt's good to have it prepared from the start.

For example, if it's a job like website creation,prepare a contract from the beginning that outlines how to respond when trouble occurs.Have it ready. If it's a restaurant or store, for example, if problems like earthquakes or food poisoning occur,anticipate in advance how to handle it completely.Have it ready. It's important not to think about it after trouble occurs, but to prepare and take measures in advance to minimize damage.

It's scary because you don't know or understand. If you anticipate it from the beginning, even if trouble occurs, you just need to act as anticipated.Basically, people don't feel much fear towards things they know. It's precisely because they don't know that they feel fear. That's why it's important to thoroughly and proactively takemeasuresagainst various troubles in advance.

So, there are many ways to do it without taking on debt.

Who popularized the idea that starting a business is scary because you'll incur debt? Debt is a type of fundraising tool, and you just need to avoid reaching for that tool. There are many other tools to raise funds, so you don't have to choose debt.

Trouble can occur, but it can be avoided by preparing a response in advance for when trouble happens, or by writing countermeasures in a contract and setting up a defense line.

Most people who end up with large debts fall into one of two patterns: they ventured into a business completely beyond their control and caused trouble without setting up any preventative measures, or they borrowed money from others out of ignorance and failed to generate sales.In other words, it was a 'misjudgment' and a mistake that should have been avoidedindeed.

Occasionally, there are entrepreneurs who take the plunge even knowing it's beyond their control, but such individuals likely have the mindset that they'll somehow make it work even if they incur debt. If you don't want to be burdened with debt yet,first, try to be mindful of not borrowing from others and not engaging in businesses with high expensesis a good idea.

Regardless of the form or scale, there's no such thing as not being able to start a business. Study diligently, acquire knowledge, and consider the flow of evolving from everyday activities into a massive service. There are many examples of evolution from familiar things. Surely, you'll feel more affinity towards entrepreneurship, won't you?