How to start a business without loan?

Bookwormlux

Valued Contributor
Whenever I see people talking about starting a business, a lot of them first think of taking a loan so as to be able to start because they do not have enough capital.
However, I do not think it is always the best option. Taking a loan involves more than one may be thinking. What are you going to do if the business fails to bring out the results you had expected?
These things are not properly put in place and so many people end up in a frustrating situation after their businesses failed and they are finding it hard to repay the loan.

The solution to this would be, try and start with the little capital at hand, then you can be expanding the business as you make profits. Most people may not agree with me because they want to make it at once. Not everyone is willing to have a little beginnings.
Another option would be getting people who would freely donate some money to help you start the business.

How do you think one can start a business without loan?
 

Jonaville

Active member
Personally, I don't fancy taking up a loan to start a business. It almost always leads to very hard times, because the early money you realized from the business will be channelled into paying off the debt. This means there won't be enough to cater for the business and oi personal expenses. And this usually leads to financial problems.
Taking up a loan to start a fresh can be overwhelming in the long run, suggest people try other alternatives like collecting incentives from well-meaning family and close friends. Source for capital from a temporary job, ask for some funds from your parents ?, etc.
In any case, taking a loan to start up a new business should be your last option, that is if you want peace of mind.
 

Peppul

Active member
Personally its not advisable to start a business with a loan, best thing to do is start saving from the job you are doing for some period of time and after you have save enough you can start small and from there grow your business, the orher option is to ask family and friends for support, its not a easy task cause some will help while some won't but it's better of than taking a loan. The only option I can advice to take a loan is if you have a property you can mortgage out to take a loan then you are good to go.
 

Abigael

Valued Contributor
I also prefer to never start a business with a loan. It makes it so hard for the business to break even as the profits will be used to pay back the loan, and this may take a long time. So it is best to look for other sources of capital. One would be getting donations from family and friends. If they know you as a responsible person then they will surely donate. You can also start a business from your own savings. So this requires you to have planned ahead such that you save money from your sources of income with a purpose to start a business with it.
 

Seyesystem

Active member
Starting a business with loan is not always good I will prefer to raise fund from relatives or a family friend to start the business however if our I'm unable to raise the fund from the people mentioned above I will rather say one of my assets to raise capital for the new business that is how you can easily start a new business without taking loan.Getting loan to start a new business is common when you don't have enough capital but Sometimes it's difficult to repay loans especially when there is decrease in sales.There is nothing wrong to get a loan for a new business once you know that the business is viable. So many big business that you here there name globally started the business with loan. Once you carry out your market research and feasibility study of the business and you are very sure of the profit projection of the business you can get your loan and start the business. Business involves risk taken I hope you still remember the higher the risk the higher the return. If you are very sure that the business is viable I will advise you to get the loan for the business
 

Unique23

Member
Whenever I see people talking about starting a business, a lot of them first think of taking a loan so as to be able to start because they do not have enough capital.
However, I do not think it is always the best option. Taking a loan involves more than one may be thinking. What are you going to do if the business fails to bring out the results you had expected?
These things are not properly put in place and so many people end up in a frustrating situation after their businesses failed and they are finding it hard to repay the loan.

The solution to this would be, try and start with the little capital at hand, then you can be expanding the business as you make profits. Most people may not agree with me because they want to make it at once. Not everyone is willing to have a little beginnings.
Another option would be getting people who would freely donate some money to help you start the business.

How do you think one can start a business without loan?
I think never ever start your business with loan . Firstly you earn money from job and save enough money for your business which you want to start. It is very important for business because you will not face any loss.
 

Mataracy

VIP Contributor
Its very better to start business little capital than taking a loan because when you take a loan you will not have rest of mind weather yiuare going to make it at the end or not .
Any little capital you start with its just a matter of time your business will soon grow big when you put more effort and manage the business very well .so its not a must to start business with a loan.
 

btaliat

VIP Contributor
Starting a business with loan is not advisable but not a bad idea. We can always start businesses with our saving and investment. But if there is need to risde more capital for the business, then I think we can seek the help of our families and friends rather than obtaining loan from bank which always give stringent rules and always wish the loans are not repaid so that the collateral may be forfeited to them. That's why we need to save in order to avoid all these unnecessary borrowing.
 

TOZZIBLINKZ

VIP Contributor
Getting a loan to start up a business is not always a good idea, because sometimes you can't meet your target like your income so as to repay the loan in time,so i think the solution or best way to start a business without loan is self determination if you determine to start your business without loan u will definitely start it,also having some savings is also the best way of starting business without loan.
 

Sotherefore

VIP Contributor
in the first place I do not actually advise anyone to take a loan and started a business because you may be at risk of going to jail,what I know about businesses is that if you are really serious to go into any business you should also be serious to raise money and start up that business, getting a loan to start up a business is risky.
 

Alexandoy

VIP Contributor
I started my first business without a loan even if my capital was pretty small. The boutique was built in our property to save me from rental expenses. If I would have rented and I had a loan to pay you can imagine the pressure that would be a hassle. My suggestion for people who h ave no ample capital is to sell an asset so taking a loan will not be resorted to.
 

Mellorando

Banned
A sole proprietor of my shoes to start his or her business with a loan but this is not always good things my turn out unproductive and he or she may be unable to pay back the loan so because of this it is advised that you use your own money when it come to initially starting up a business because why borrowing you should also be thinking on how to pay back
 

sincerem

VIP Contributor
Starting with the little capital on our disposal seems better than taking loan during the business starting point. The best we can do, is save for sometime develop the business and start from somewhere, build the income it will grow as time goes on. Then taking loan to kickstart our business, that will be double burden, trying to make profit and loan repayment.
 

Doradorwa

Opportunity seeker
I do question people when they decide to take a loan for their business startup. It's very unhealthy. There are quite a few alternative to look into instead of loan and especially bank loans. You can work and gather a bit up and start small. You can go for loan for family members that does not entail Interest with them. You can sell some properties if you have some and lastly you can look for potential people to fund the idea of your business for you.
 

Sotherefore

VIP Contributor
Taking a loan to start up a business to me I will not do it because I don't see the need but if in a situation in which my business is already successful then I can obviously get the loan to expand my business but getting a loan to start up a new business is no no for me. The risks and the thinking might be too much on me.
 

Caramelle

Active member
The most common solutions are for an individual to save up for the capital or to start soft and small. Saving up for capital can help you avoid resorting to loans that can hurt your financial standing for a long time. However, this approach could take a long time and some business ideas can't wait so this isn't always the best idea.

Starting small can be helpful in terms of getting the experience and exposure in your chosen line of business. You can always expand it when it proves to be successful by reinvesting your profits. Some businesses are meant to stay small in order to remain profitable. It does have its disadvantages. Nowadays, customers prefer places that offer multiple products and services. For instance, people flock to big malls because they offer almost all types of businesses and services on top of their entertainment value. The most successful mall operators will usually provide bills payment, foreign exchange, official document requests, and even phone loading services for free. Thus, if you're starting small in some cases, you may not be able to build the clientele you need to maintain your business or support its growth.

For business ideas that can't wait, its proponents may opt to finance the business by bringing in an angel investor. In such cases, they can avoid the pitfalls of resorting to loans by sharing ownership and profits from the business.​
 

Kingsley

Valued Contributor
Many people make the error of thinking that the first step in starting a business is looking for capital, hence for this reason the business will fail even be for it starts at all. This is because looking for capital shouldn't be first phase of business setup. Rather we should look inwards first and think deeply at those things we can do and it won't seem like a stress to us, this is because I people complain alot about their Jon's and business because they see their business as a rigorous activity and they believe they wouldn't start it in the first place if not for pressures. Hence it is always better to engage in a business activity that you have as a passion. The passion will be what wil drive you when you are faced up with challenges.

Then when that phase has been settled it will be very good to take a critical survey of the business terrain you intend to operate, better still you can attach with someone already running the business, this is done to give you a more practical experience, and before you know it you be fully set to hit the ground running. Then get laons and grant and you will succeed.
 
E

eldavis

Guest
There are others ways to generate income to startup your business, loans is not the only solution but people tend to go for loans cause it's the quickest and probably the easiest to carry out. A friend of mind was able to start his business by doing other side hustles for months, before he was able to startup his business.
 
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