What's Your Thoughts? Starting Small Or Getting A Loan?

[Kendy]

One of the major challenges encountered in any business is funding. At times, the business idea is readily available but the funding becomes an obstacle. There are individuals who has a feasible business idea but due to the inability to fund a business, the business goes down the drench. Sometimes inorder to keep the business idea or bring it to reality, potential business owners have no other immediate alternative than to obtain loans from the bank or through money lenders not even minding the terms and conditions coupled with excessive interest rates. They take up the loans and sooner or later, they realize that it is difficult to balance the equation between repaying the loans and making progress in their business. I have been in a precarious situation where I took up a loan and the covid-19 pandemic struck which made it hard for me to make sales. I had no other option but sell some of my assets to raise the money. This experience taught me that, it is best to begin a business on a small scale with the little savings that you have than to opt for loans. I know some businesses are still operated successfully with loans but a greater number are facing major challenge because of setting up a business with loans.

 

[funmi]

I actually don't know why many people are always afraid to start small, instead they prefer to get loans to start up their businesses which is actually not the best idea.
I would rather use the small amount of money I have with me than to start a business and then build it up gradually than to take a loan to start up a business.
Life is filled with uncertainties likewise businesses, you may start a business now and within a short period of time, the business starts booming or expanding. And on the other hand, you may start a business and the business crash down within a short period of time.
If the business fails, how will the owner cope if he started with a borrowed money? How will he pay back the loan if the business crashed? Most of the times, this situation leads suicide on the part of the person who took the loan. They will find it difficult to recover their losses and it may cause a lot of disasters.
But if you start a business with your small capital, this will give you rest of mind at first. You will not have much heartache if the business crash down. You can still puck your self up from where you fell and continue to build again.

 

[eldavis]

Personally I would definitely go with starting small, let's forget the fact that I do not like loans, but starting small, actually gives you the needed opportunity to grow and increase in knowledge and most importantly it gives you experience. There is no greater joy as knowing you started small and over time you succeed in growing the business to a certain level. Loan on the other hand puts you under unnecessary pressure, what happens if the business do not go as planned, how do you pay back the loan?

 

[Rachael]

In starting a business one of the obstacles is always from the source of funding and due to this limitation, a lot of feasible business ideas has gone down the sea level. I presume effective level of planning should be prominent when starting a business and the source of funding should be available. There is absolutely no business that can be brought to reality without funding and this is the reason the tricky question do come about between a business idea and the capital whether which should come first and this question today has been a puzzle which has no definite answer. In starting a business, I would say that starting small might be the better option because you can grow with time but the time might be longer or shorter depending on your creativity and strategies employed.

The pressure in starting a business with a loan is always the loggerhead and the bone of contention but I think that in starting out with a loan, it would keep the business owner more abreast and conscious to run the business successfully and at times, taking risks in business like opting for a loan might be the best way to a sustainable business. However, a yardstick for a successful business is not measured with the source of capital adopted for funding but rather effective planning, creativity and innovation.

 

[Sotherefore]

The point is that starting up a small business to some people may be a stressful thing to do and others it is something they confidently do because they believe that with small business that they can grow their business to a high standard in the future.

Well to me I even consider that to be the best because if I am starting a small with my own personal capital and at the end of the day the business is not successful because of one reason or the other I will only have myself to blame and I will not be paying back loans I have collected from people.

I don't just see anything wrong with people starting up a small business on their own and if the business shows a great sign of progress the owner can then get a loan to expand the business because that is how it should be done.


Starting up with your own personal capital is a way of testing the business to really know if the business will be successful or not.

Some people may not still have the interest to even get a loan to expand but will prefer to manage it with their little resources.

 

[Augusta]

I have always been an advocate for starting a business small even if you have the money still start it small. you know why? because you would learn better what works for your business to be able to put it in place to avoid a huge failure or loss.

it isn't even advisable for one to start a business with any form of loan unless you want to lose the business faster than you thought . With loans you will start paying back almost immediately and this means reduction in the capital of the business.

So the best bet is to start small, learn from it and then expand it in the future.