Don’t get the wrong idea

I realized I should be clear about one thing before someone takes this the wrong way: Do NOT get in over your head with unsubstantiated hopes.

If you have a solid business plan, really solid, and you have some certainty that you will be out of credit card debt in six months or less, then it does make sense for you to use the cards, the no-interest balance transfers, etc.

If however you are just holding onto a dream that even though you have no revenue and no customers in the pipeline but somehow Google is going to find out about how cool you are and call you up and offer a gazillion dollars, well, look, I think you should get a job delivering pizza to make sure you can pay off your cards soon.

Do not take up drumming! You know the difference between a large pizza and a drummer? The pizza can feed a family of four.

I digress.

Look, here’s a good rule of thumb: If your current revenue is enough to cover the credit card minimums and your other fixed monthly expenses, and you have customers in the pipeline that will mean you can pay off the cards before the special rate expires, then you should be OK. If you are taking out new cards to pay the minimum payment on other cards, you need to stop right now, go get a job, and keep your dream going on nights and weekends.


In my second go around as a Credit Card-Self-Venture-Capitalist.

1 Comment on “Don’t get the wrong idea

  1. Scott,

    Your last paragraph is key. U need 2 make some very HARD rules at the start (b4 u get on over your head) and while the optimism is still following. Set down the black-n-white rules (write them down – on paper (not on computer where u can ‘fiddle’ them later) on what criteria/rules will get u2 put down the tools n walk away. As u said go get a paying gig (2 pay 4 your overheads etc..) and maybe continue with the startup on a part-time/moonlighting basis.