raaman
Valued Contributor
Should you borrow for your business ?
You need not take a loan for your business to the extent it is going to be in the future years. Alternatively, you can get a reasonable loan that you can repay immediately while just starting out.
Do not hope to see costs covered by profits shortly. More often, people overestimate the success of their business in the first few months and years of operation. Building customer base takes time and it usually takes new businesses a year or more to become profitable.
Avoid making bad decisions. Startups face many things. If the location is wrong, product choice is wrong or the competition is underestimated then your business may not perform as you expect.
You need not take a loan for your business to the extent it is going to be in the future years. Alternatively, you can get a reasonable loan that you can repay immediately while just starting out.
Do not hope to see costs covered by profits shortly. More often, people overestimate the success of their business in the first few months and years of operation. Building customer base takes time and it usually takes new businesses a year or more to become profitable.
Avoid making bad decisions. Startups face many things. If the location is wrong, product choice is wrong or the competition is underestimated then your business may not perform as you expect.