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Things To Consider Before Taking Funds To Start Up A Business

Discussion in 'Finance' started by Celestina Angel Serome, Jul 16, 2019.

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  1. Celestina Angel Serome

    Celestina Angel Serome Administrator Staff Member

    Business has turn into one of the most
    surerest way of earning real cash and has equally become a means of escaping from poverty in our society, because business has made it possible for many individual out there who are victims of unemployment to be employed.
    In our society today, almost everyone wants to become a business owner or a boss of their own.. Everyone out there want to be known as that famous business owner because they are all well aware of the benefits business comes with.. Many a time the need to start up a business might arise but the fund to start it up mightn't be available at that particular time. This is practically one of the most often problem many business owner face. Most times they lack the fund to expand their business or even to start that business and that's why so many business men out there go hunting for where to take loans or fund to start up their business with the intention of paying back the loan. This might sound very okay and understandable to anyone who has gotten ways to start up their own business, but there are some important things that should be considered before one takes this move so it doesn't end in regret.
    I'm not saying this to scare you away from taking the loan you want, but i just want you to take some things into consideration to know if truly you are set for the loan you want to take so you don't experience regret subsequently....

    1. What type of business are you planning?: before taking a loan to start up a business, you need to be sure of the kind of business you want to invest the money into and equally be sure of the profit it brings. Sometimes, the type of business we invest our money into will determine the type of income we will get. So when we want to invest we should settle for a business that can produce real income that can be used to pay back the loan and equally run the business too.

    2. The location of the business : another important thing we should place into consideration is the location of the place we are going to start our business, because in as much as the services and goods your business sells or offer out are in good shape if there ain't any good number of customers to purchase those goods then, your chances of development will be very few. I will suggest that, before you go for a loan; you should also go searching for better location that can really accommodate your goods.

    3. The income the business brings : put in mind that the income you will get from the loan used in starting up your business will be spent on two things and this things are. The growth of the business and the repayment of the loan. This automatically means before we go for a loan we should be sure of the income the business will bring, because if the income is low and the foundation of that business is loan then definitely the business will land in huge debt and may collapse subsequently.

    4. The type of goods : it is the services a business renders out to the public that will determine whether it grows or not. Every business out there today are rendering some kind of services to the public that the public need. So before taking that loan the questions you should be asking your self are : what are the goods i'm about to sell out now? does the public actually need them? Will the public purchase my goods if i eventually start up the business? All this questions should be answered by you before you push forward.

    5. What business strategy do you have? No matter the idea of business you've got, always remember that they are other business owners out there with the same business plan as you. So what will be your strategy to lure more customers to your own business? What will your business offer that other business supplying the same services as you haven't offer?

    6. How many employees can your business accommodate : before starting you should be sure of how many employees your business can take to avoid going bankrupt and facing too many debt. You need to be sure of how many people you are capable of working with that you can pay monthly and equally get your income to run your business plus returning the loan.

    Taking a loan isn't all that counts, most times we really need to examine things before we apply actions to them. I will still repeat, this isn't to discourage anyone, but something that will help you to know if you are capable or not, so if you feel you are up for the challenge then go ahead.
     

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