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Accounting & Finance

Want To Start A Business But You’ve Got Student Loan Debt?


Millennials are the most risk averse generation according to this article on Investopedia.

On Forbes, millennials are over having so much debt especially when their starting their careers, so how can they start a business? We definitely want them too, as they’re the most educated generation so far and their preference to climb the corporate ladder over starting out on their own to build a business from the ground up is a lost opportunity.

There is a better way to manage student loan debt including via consolidation of the loan and other debts. We’ll briefly explain what it is but remember professional advice from authorized industry experts including your accountant, financial advisor or bank manager is recommended before taking any action with loans.


Consolidation of debt is a great start as it’s essentially one loan that wrap all your loans e.g. student loan, bank loans, together. Having the one loan that’s more than likely on much better terms i.e. a lower interest rate and less fees should with budgeting your expenditure reduce the time to clear the debt. More on debt consolidation can be found here and remember to get financial advice from professionals.

Start A Business

Once your mind is off repayments you will be able to concentrate better on starting your business. You will be able to utilise your education and knowledge to create a business plan and engage a team of mentors and advocates to help you along the way.

Business Plan

The business plan is the road map for you and your team. To do it well it requires focus, and clear articulation of goals and what the business should achieve. It doesn’t need to be long, in fact it’s better it’s kept short and concise but covers all the important areas of what the business is, what it needs and when, plus what it’s expected to achieve in the short, medium and ideally long term.

Include a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis and what investment is required in the initial stages.


Your business plan will show your prospective lenders and investors the opportunity for them to be part of your success. Transparency is vital because the financial companies will need to see that you are determined to pay off your student debts and also make it big in business.

Start small and over time increase your business and the investment required. This is a time tested strategy; to ensure you never ever fail to pay your instalments on time.

Start small and over time increase your business. This is a time tested strategy; you will be able to succeed with just this one strategy. And never ever fail to pay your instalments on time. This is very important. Ensure that the instalments are taken care of. In fact, keep a provision in your accounts to hold two months of instalments; this will keep you in good stead in the long run.

Marketing and Advertising

The hardest phase of running a business is the start up phase i.e. the first eighteen months to two years. In this time your focus is on commercialising your products and services and firming up your operational processes.

Marketing drives awareness to your business and this is where your investment money goes. Engage a marketing expert and ideally a digital marketing team who have proven success with start ups and ideally in a similar industry to your own business.

Do your own research too. Ignorance is not bliss. The more you know about your targeted audience and where they hang out online the better. You can instruct and work collaboratively with your marketing team to get a high conversion rate on your marketing spend. Not all offerings are best marketed just online either. If your business is bricks and mortar, attracting local foot traffic should be part of the marketing mix.


Student debts and other debts can be managed effectively to allow you to get started in your own business. Investors look at the person as much as they do the baggage that comes with them so to speak so show them how you’ve got your debt managed and use your business plan and acumen to impress and provide confidence that you are worth the investment.