...you might be wondering, and that's a good question indeed. My plan involves my past experience with credit card debt, today's low interest rate environment, and about 15 large I've set aside in an account at my credit union. (That's right - credit union. Lower interest rates and no fees...as my Aunt Phyllis likes to say, there's a reason why "bank" is a four-letter word. Though I do love Washington Mutual's superfriendly ATMs.)
Basically I've mentally split the 15k into 10k for the business and 5k for my personal expenses for the summer. I'll spend the personal 5k as slowly as possible, though a Hawaii wedding I'm attending in September and recent work my car has needed are going to put in some substantial dents early.
As for the business's 10k, I'm actually going to keep it in my account while I make the business's first 10k worth of purchases on my new credit card, which offers no interest on purchases until June of 2006. I figure that once I've invested 10k in the business, I'll have a good idea of whether it's a going concern or not...and if not, I'll pay off the credit card with the 10k from the credit union and throw in the towel. But if so, I'll have the option of keeping the credit card debt on the books as a very cheap loan and using the 10k in cash as additional capital for the business. We shall see!
