Starting a business is both the easiest thing to do and the hardest thing to do. You don’t need a special education or special equipment to do it. You can start a business for very little money depending on the business. You can start some businesses without any regulatory red tape. Other businesses require a room full of well-paid attorneys just to get you started.

A lot depends on how big of a business you want to start. You can start an online business where you sell goods and services without needing to handle any inventory. You can do it right from your kitchen table and start taking orders in a few hours. You can start a neighborhood restaurant with a handful of employees which will take considerably more time. Or you could start something like an interior design business where you are the sole proprietor.

Regardless of what type and size business you want to start, money is likely going to be the limiting factor. If you don’t have enough of it, you are going to need some type of loan to get you started. That will be difficult to pull off with bad credit. But you still have a few options to consider. Before doing anything, work on raising your credit score.

Debt Consolidation

One of the easiest ways to deal with that mountain of debt that is holding you back is to get a debt consolidation loan. That brings together your high-interest credit card debt into a single loan at a significantly lower interest rate. Use a credit card debt calculator to see how much you are paying in debt service versus how much you can save with the right consolidation loan. The savings, alone, can get you cashflow positive without changing anything else. That pocketed cash could be all you need to get started in a few months.

The other positive benefit of a consolidation loan is it can immediately raise your credit score. You will have fewer creditors and a lower bill to pay. Check your credit score regularly to see the changes. That way, you will have a better idea of your chances of getting the next loan.

Start Small

When it comes to digital acceleration, the best strategy is to think big and start small. That is also true with regard to starting a new business. One of the first and worst mistakes new business owners make is starting too big. First, they need to gain some experience in running their own business. Even if you have worked in the industry for a while, there is a lot you don’t know about running a business.

The next problem is money. Entrepreneurs often miscalculate how much money they actually need to make a go of it. On paper, you can start any size business you want. In reality, high levels of business require more capital. If you get too small of a loan, you might find it difficult to get another one right away. It is a lot easier to calculate what you will need when you start small when bringing your big idea to life.

Find Citizen Investors

If your credit is too bad to get a traditional loan, you are still not out of luck. A lot of people manage to get the capital they need from efforts like GoFundMe, Kickstarter, and Indiegogo. While the most popular, these are certainly not the only avenues of crowdfunding. You don’t need banks, angel investors, or eccentric billionaires to throw you a bone. Plenty of everyday people would be happy to get in on your big idea. You just need to structure a funding and reward scheme that makes sense based on the service you are using. This works particularly well for manufactured goods and art projects.

Being broke is miserable, but not hopeless. Bad credit makes it worse. Sometimes, the best way out is to start your own business. You wouldn’t be the first person pushed by necessity to do so. Just remember to consolidate those debts, start small, and try alternate routes for getting funded.