Debt free vs. business operations

[whiz]

Okay, I am new to this site and the reason I found it was because I was trying to find an answer to my scenario via search engine.

Here is the situation:
After a lot of work and some really tough situations, my wife is on board with the DR way of looking at finances. I had been reading his books for a long time and had gotten out of debt other than my mortgage. Got to that point and didn't go any further. We got married in May of last year, and the concept was totally foreign to her, but after some life altering things, she agreed something had to change. In the last year, I had some surprise debts pop up and so did she, but we had to adapt and overcome. I was unexpectedly released from the military and we had to move back to my hometown in my "fix-er-upper" house I never fixed up before going into the military.

I knew I needed to bring in extra income as well as our small amount of base pay in order to get anything accomplished because we have to move across the country in July to be with her daughters from her previous marriage. I started a business working with my old partner from before I left the area, and started to bring in extra cash. I haven't spent much of it and now it has built up to enough to handle paying off almost all of our debts. The business needs some operating capital to handle chargebacks, refunds, and a small amount of monthly expenses. I would say 1k would probably take care of most of the expenses minus unexpected chargebacks for unhappy customers or whatever. If the situation of a chargeback occurs, it will be with plenty of notice to me, but it may be for an order of 1500-2000 which would be tough to just make appear out of thin air. I have approximately 5k total in a business fund that I am keeping in there for operations and keeping a bad business mistake or deal from affecting our household.

This is where my question comes in. Should I drain the business fund minus what the business NEEDS, to pay off our debt, or should I maintain a higher amount in business capital to keep from it taking a toll on us. I have been self employed for all of my life other than my military time, but I have never put this much forethought into my financial decisions because as a man, I can live on Ramen noodles and dirt. I am fairly certain that a chargeback will not happen, but I have to be somewhat prepared. 90% of my sales and orders are in the 150.00 to 500.00 range, so a big chargeback is even less likely. I want to be out of debt, I want to get us moved in July, and I want us to have a less stressful life than the one we have been leading for the last year, but am really not sure what DR would say in this situation. The business is soon going to be our main source of income, but for now, it is extra I am not touching until we figure out the best move. I do not want to put us at risk, and I do not want to put the business at risk...

ANY HELP IS APPRECIATED!!!!!!!

Thanks in advance.

[Samigirl]

Without knowing the details of your personal finances, my first reaction is to tell you to save that money for your business. Your business is the goose that lays the golden egg, and I wouldn't drain the business account if I were you. Of course, if your personal finances are in dire straits, I would use some of the business money, but I'd leave enough in the business account for a worst-case scenario chargeback. If you put your business on shaky ground, you will put your personal finances at risk too.

[Greebo]

I'd figure out what the business needs - and set 6 months of that in reserve for operating business capital as a hills and valleys fund.

The rest (if any) I'd put to debt elimination.

[whiz]

I had been of the mind set that the business should stay separate. I think the instant gratification bug was causing me to see what is being built and want my debt gone NOW! We are not in a bad spot financially, but some things can definitely improve, and even without touching the business, the debt (other than mortgage) could still be paid off in around 3 months. We are up to date on all of our bills, and making contributions to our moving fund and savings. I just wanted to see what other people with like financial minds would say to this situation, and from what has been said so far, it makes perfect sense to me.

Of course, one option is to try and effectively build this business using payday loans, credit cards, and leased vehicles, but only the rich lease cars right?... Or I could sink all business capital into the great long term investment vehicle known as the lottery...all options I am weighing at this time...

[NikoSan999]

Without knowing the details of your personal finances, my first reaction is to tell you to save that money for your business. Your business is the goose that lays the golden egg, and I wouldn't drain the business account if I were you. Of course, if your personal finances are in dire straits, I would use some of the business money, but I'd leave enough in the business account for a worst-case scenario chargeback. If you put your business on shaky ground, you will put your personal finances at risk too.

Have to agree. We are in similar circumstances and our opinion is business is first priority.

[Samigirl]

Of course, one option is to try and effectively build this business using payday loans, credit cards, and leased vehicles, but only the rich lease cars right?... Or I could sink all business capital into the great long term investment vehicle known as the lottery...all options I am weighing at this time...