Don’t take a loan to start a busi­ness

Daily Trust - - BUSINESS -

In con­tin­u­a­tion of the ar­ti­cle - ‘You don’t need start-up cap­i­tal’, when you start your busi­ness is up to you, not cap­i­tal. The com­mon com­plaint about lack of cap­i­tal is a very good ex­cuse to do noth­ing. If money has ever passed through your hands, you have cap­i­tal. If start­ing that busi­ness is im­por­tant enough to you, then you will do some­thing with the money you have now.

Any­one who has ever re­ceived an al­lowance or cash gift of any sort has no rea­son to com­plain about lack of cap­i­tal. That is the seed you need to get go­ing with your idea. You need to get to the point where you can prove to your­self and oth­ers that your idea is prof­itable. Not hav­ing enough money forces you to be re­source­ful and make do with what you have. So not hav­ing enough money is an ad­van­tage rather than a dis­ad­van­tage.

If you take a loan to start your busi­ness, what is the guar­an­tee that your busi­ness will re­pay the loan? You have no proof. It is no sur­prise banks shy away from such propo­si­tions. They want ac­tual proof your idea works. It is your job to make do with what you have to de­velop your busi­ness to where it can at­tract in­vest­ment. The mo­ment you can prove you have a win­ner in your hands, borrowing to grow your busi­ness be­comes much eas­ier.

Usiere Uko is au­thor of Prac­ti­cal Steps to Fi­nan­cial Free­dom & In­de­pen­dence. Emailusiere@gmail.com, to or­der the book, call or SMS to 0808 275 0980 vis­itwww. fi­nan­cial­free­domin­spi­ra­tion.com. Fol­low me on twit­ter @usiere

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