Should i start small or get a loan

[Kinglegend01]

I really need your help on this matter. I hav the intention of opening my own business soon with the little money I have saved up for some time now. Now the real issue Is this, the money I saved up is really small but would be enough to start the business on a really small scale. I would have considered going to the banks or other organizations that give out loans but I would never start any business with loans from bank, This is my personal opinion, because I have seen how many Banks treat their debtors, most people that start a business with loan don't usually have peace of mind and majority of them fail and the collateral they give they end up losing them.

 

[Haypril]

It all boils down to the nature of the business you want to venture into. But not withstanding, I think starting small is all it takes to because in every journey, there is always a step to take.
So in my opinion, please start small with what you have then learn to build a standard and of course, build to a level of satisfaction.

 

[Olajidey]

I will advise you to start small no matter how you want the business to be, the reason why is that in the cause of the business you will face many challenges sometimes this challenges might be more than your power than to quit the business, so if you have already obtained the loan you know that you already in debt.

 

[Georgeadawara]

It is advicerble to start a small business than to look for a loan to start a big .
Starting that small will always gives you an experience to go on the big one you can source a capital to start for the big one from your small business . So in the small one you can learn how to manage risk.

 

[sincerem]

I wouldn't on earth recommend one to go and take a loan in order to run his or her business initiative. It is better you save up cash and have one aim of driving profit through your business, than just working for double demands. Trying to pay for the outstanding loan and trying toake your own gains.

 

[Profwriter]

Starting a business with a loan is very risk because you never can tell the outcome of your business. This is not an attempt to discourage you or to sound pessimistic but to bring your awareness and attention to the risk involved. Never forget that there are always two sides to any business, you loose or gain and both sides are real, but people are quick to only think of profits and make no preparation for losses and when looses come, they are out of business.

 

[Deleted member 28873]

I would rather advise you to start small, its really dangerous to start a business with loan aside from the risk involve, if things were to not go the way you think it would go, you would have to think of other means to settle your debth which could lead to bankruptcy at an early stage.starting a new business, a business owner should be in his or her peace of mind when starting any business,he or she shouldn't be in any pressure.A loan could be a lot of pressure on a new business which would not allow the business owner to weigh his option properly.

 

[Emmatyking]

It's a advisable you start small on a business you have no idea what the outcome will look like. It's not advisable to get a loan as starter in business

 

[Doradorwa]

Yes brother... Start small... At least you have the assurance that the business belongs to you only and nobody will disturb your peace of mind if you default... I don't like loan for small business owners... You will have to pay the interest with your profits... Not too cool at all.. just start with what you have

 

[Abee111]

To start a business with a loan has a higher risk
So i advice you to Just start with the little capital you have and make the small business. With time when you get additional amount, you can decide to add it to your business and expand it. That's how gradually you will make it to be large

 

[Chibson]

I always advise people never to take a loan in order to start a business especially when you don't have proper knowledge and understanding of how such a business you are going into works. I have seen a lot of people who took loans to start big businesses but at some point, their business started declining because of lack of proper knowledge and understanding of how such a business works. What matters in business is not all about capital because you may have the capital but if you do not have the right business idea there is a possibility that you will not succeed in such a business. . It is always advisable for people that have existing businesses and wants to expand it to take a loan because they already have their plan in place and already have track record of running a successful business. If you don't have enough money to start a business, it is better to start small because that will give you enough knowledge and understanding of how business works. It will open you up to the secrets of running a business and at the same time give you the right orientation about that particular business.

 

[moonchild]

First of all, you could've specify the type of business you are planning on starting that will help us in giving you advise, before talking about if you should start small or take a loan, is your business solving a need or a it's your business adding a new value to an existing business or you're just starting because others are doing the same business and they're making money?

After you answer those questions then yes you should start small and you should never think of taking a loan from a bank or any institution, it's a bad note to start a business on, you should utilize the small you have and use the proceeds to increase your capital.

Don't think too much please just execute and learn on the business because most of the time we let a business opportunity go because we overthink it.

Get in and learn on the business or if you can get a friend that, a trusted one, that you can pool resources and start together that's okay too.

The only time you should be thinking of getting a loan is after your business is already progressing and you're getting more customers and users then you can take a loan. Even the bank will not deny you because you're profitable already.

So Goodluck

 

[Kendy]

Starting a new business with a loan has so many implications and this is not advisable mostly for new or upcoming businesses. It is better to opt for; grants, empowerment schemes, investots or through your personal savings. No doubt, getting of loans is one quick way of having funds but it also has disadvantages because of the pressure and the limited timeframe of repayment. Also, they are cases where an impending or unforeseen circumstances occur and you are able to balance the equation between repaying the loan and maximizing profit which become so detrimental to your psychological health and to the business as well. It is important to always have a back-up plan in order to pay the loan and also bring up creative and innovative ideas which could help you in maximizing profits and also with customer retention. Most small scale business owners or large-scale business owners alike who took loan for start-up businesses do not really have a good story to tell especially during the upsurge of the unfathomable covid-19 pandemic which was a great disaster and came to everyone as a shock, in this instance if you had gotten a loan you will be so hard for you to refund due to the total lockdown and your time keeps running out and the interest rate attached to the loan keeps increasing.

 

[Shaf]

My candid advice is that you start small. I learnt this from my husband and I've seen it over and over again.

This is the best way especially if you are new to the business. Even if you're not new, this will limit your risk and save you stress of loan repayment. Whether the business fails or succeeds, it's money that no one will ever ask you for.

It also gives you opportunity too see where improvement can be made in the business, you get to know areas where you can cut costs and still have a functional business which will be very helpful when you expand as you'll be able to work and make more profits with less money.

 

[Kingsley]

I am of the opinion that one always starts small rather than borrowing or accessing loans to start a big business. My reasons are not so far fetched, someone starting small with his or her little capital is bound to gather a lot of experience as he or she commences operation. Of course there will be a lot of challenges as the business progresses and the one starting little or small will be able to experience this challenges in a small scale and seek out ways of manipulating his way to bring out the best in challenges. This will help such person to muster the required stature that is needed to handle a more bigger business.

Unlike the one that is set to access loans to start a big business, although the person may be think in or looking at bigger profit not knowing that the practical business life is quite different from the theoretical one. Hence this person going for a loan may encounter some practical problems he or she may not be able to handle and this might make him or her to liquidate somewhere along the line. Because they lack the practical experience. So experience is always relevant.

 

[HayKay]

Bro, I'll advise you to try all you can to avoid taking out a loan to start a business because the pressure might be too much for you to handle; a loan can be taken to expand an existing business since you've been in the system and have an idea of what to do to grow.
It's better you start small and be disciplined; taking along with you important lessons that you learnt along the way.

 

[funmi]

In my own perspective it is always best to start small and not starting big. Life is risk, business itself is also another kind of risk, it is always best to test the waters with something very little so that you will see how far you can cope. That will just serve as a kind of test run for you to have a better understanding of what is really going on. Some people had made the errors of starting very big because they had a plan on paper and they did not realised that the calculations on paper are quite different from the one we have in the reality. So for that reason they go all out to get big loams so that they can start very big and in the long run the business begins to collapse and they eventually shut it down. And so were not so lucky as they were still owing before the winding up of their business. So it is best to Starr small so that your mind will be at rest than to start big with loans and give yourself a sleepless night. And in the end you may make wrong decisions that will affect the business.

 

[Sikapa]

Is better to start with the little that you have if you really think it can only start something. It is very advisable not to invest huge amount of money into a business from the scratch because you don't know how your market is going to run. Therefore, first start with the amount that you have to check the market first.

 

[Sotherefore]

It may be so difficult for you to make this decision , but there are so many things you have to put into consideration because it is not just right for you to just start up something that might be very difficult for you to deal with in the future.

Getting a loan is not really a bad idea but the most important thing is how you will be able to pay back the loan because it shouldn't really be from this your business you are going to establish with the loan.

You should have an external way of paying back the loan and not really from the business you are establishing because if you used the money now to start up a business then you start taking out money from the business to pay back the loan obviously your business will still collapse which is not the best option.

Starting up small will help because from there you will know the tendency of your business's success and if its has good future potential you can decide to get a loan and expand it and grow it to the
required standard you expected it to be.. that is how I will do in such a situation.

 

[TOZZIBLINKZ]

They question whether to get a loan or to start with a small initial capital you have to establish a business or to implement a particular business idea you have in mind , is a question asked or mostly asked by new individuals going into business . Just ask it is advised for us to survey and area before buying a land , same is advised to establishing a business we must first of all survey what are the possibilities that may come about , if we take a particular business loan in order to establish a business of our choice .

It is not always advisable to collect a loan from a a bank in order to establish a business , this is because there is always a slight possibility that the business you establish may not go as expected and could dwindle rather than making profit. if you have no choice than to collect a loan from a bank you must make sure to have an alternative in mind in case your business you intend to establish with the loan does not go as planned or expected. If you do not have an alternative , it is advised not to even collect the loan at all so as not to incur unnecessary and unbearable debt on yourself .