Starting a new business without adequate funding

[Immilash]

Some business men's starts up a business without adequate funding And they expect the business to excel starting a business with enough funds will only lead to looses. What's your opinion on this?

 

[General01]

Yes there is high possibility that it will lead to business failure and subsequent loss from the side of the businessman
That's why it better to start with a loan than to start halve way through whivh definitely crumble

 

[Kingsley]

That is the fastest way to prepare for failure in business. Remember the saying that goes thus; if you fail to plan you plan to fail. And more so whatever is worth doing is worth doing well. So in the course of planning a business venture, one must put in somuch work in the planning process and adequate funding is what a business requires mostly at the infant stage. One cannot be guaranteed of success in any business when your start up capital is poor. The only way to progress is having enough capital and adequate technical preparations aswel.

 

[Mika]

One of the main reasons for business failure is a lack of funds. You might build a small capital and use that capital to research and develop products, but if you do not have adequate funds to market your product, you cannot generate sales, and when there are no sales, you will start failing.

 

[btaliat]

Business does not only need adequate funding for a start, it also needs it for the running of the business. There are various things that will reieure money while even running a business. So there is no way one wants to start a business without adequate funding and expect the business to flourish. It will die off soon.

 

[Mataracy]

A business without good funding is not good enough. When there is a good funding the business will be flourishing very well. Some times when there is no good funding there would not be a chance to expand the business as it suppose.

Some times when there is a good funding for the business ; the owner of the business will be able to package its product very well so that it with attracted many customers to patronize the business.

 

[Caramelle]

Starting a business with inadequate funds does not automatically lead to losses. You can start small and plow back your entire profit to gradually grow the business. You can also choose a business that will match your finances. A business owner in this situation should have the skills to market products or services in order to reach as many people as possible. Social media provide advertising and marketing opportunities at no cost. If you want to grow your business faster, you may choose to tap an angel investor. Unlike loans, you will not pay interest for the investor's money but he will have some share in profits.

 

[Jasmine]

If you do not have enough capital for your business, your business is likely to suffer, might even collapse. However, this is not the case always. You can still start a business with little money and still become very successful. However, you will have to do a couple of things, for instance, cut your expenses drastically, which might mean you take multiple responsibilities yourself and save money on staff salary, save money on office rent by shifting to the area where rent is cheaper. And also reinvest the money to scale your business as soon as your began to generate revenue.

 

[Kendy]

Before starting a business, you must have a planned budget, your budget would then determine the type of business you would operate either on a small or large scale. Funding a business is very essential to maximize your earnings. If your business idea is in line with a large scale budget and your finance is limited, then you would have to source for ways to augment it. It is not about rushing to set up a business, you have to be judicious and realistic in your planning. When once the plan is faulty, the business will likely crumble sooner or later. There is no way the business idea requires a capital of $500 for instance in a small scale business, at least, you should be able to raise and economize $400-$450 if you have the available funds but it would be unrealistic to set up the business with only $150, it would be tantamount that the business growth will cripple. If it means obtaining a loan to add to the present capital you have, then it would be a better option to see the business growth. Inadequate funding in a business can stifle the growth of a business especially if you are not creative and innovative.

 

[Yhubee]

Adequate funding is necessary for the startup of any business. Before starting a business, a planned budget should be made ready depending on the kind of business it is and steps should be taken to achieve the funds that is needed for the business, without this,the business will lack in most areas and may not be profitable enough.

 

[Rachael]

Starting a business without adequate funding is just like going on a long journey in a forest without filling your fuel tank. One thing that should be ascertain while making a business plan is the capital. There is no need rushing to start a business without proper funding. It might be impossible to have 100% of the required capital but at least 70% should be accessible. To boost the productivity of a business, funding should be adequate. There are different ways in which funding can be accessed which could be through; loans, empowerment programs, grants, crowdfunding and through investors. Funding a business is always one of the major constraint in setting up a business. A new business set up without adequate funding is like a tree whose roots are not fixated to the ground because when a wind blows, it would fall to the ground. This is what happens to a business likewise. A professional coach would not advise a potential business owner to operate a business without proper funding. This funding is very necessary incase of unforeseen circumstances, having a static amount of capital is not always feasible because at the start of a business, it might be difficult to start making gains immediately, so proper funding could curb excessive losses.