Don’t take a loan to start a 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