Finance Starting up a business with the proper capital

[Alexandoy]

The title mentions the term proper capital because there are many ways to put up capital. But the best is having the proper capital in your hand for the easy start up. The proper capital means you have enough money for the operation of the business for at least 3 months without revenue. The capital can take care of the overhead particularly the rental if you do not own the business place.

When your capital comes from a loan you can expect a rough sailing because of the obligation to pay the monthly installments. When your capital comes from the investors then you have a boss to answer to and you cannot just implement your own business style. When the capital it not sufficient for the first 3 months of operation then you have to be prepared for potential problems.

 

[Yugocean]

Undoubtedly, proper capital is essential to start any business. For this, the new entrepreneur has to use the money he has, may even sell some of his assets (starting from a loss), take out a loan from some financial institution(to payback with interest), or make someone else a partner (not to work as independent).

 

[funmi]

Of course in planning a business or starting a business, it is important to have enough capital at hand in order to sustain the business. If your capital came from some investors outside, then get ready, you will be answerable to those people that invested in the business.

 

[Good-Guy]

Undoubtedly, proper capital is essential to start any business. For this, the new entrepreneur has to use the money he has, may even sell some of his assets (starting from a loss), take out a loan from some financial institution(to payback with interest), or make someone else a partner (not to work as independent).

I have never understood why people take loans. They have to mortgage the property to banks. If they fail to pay the loan back, their assets will be confiscated by the bank. I am really not a big fan of loans but I prefer starting with a small capital. So before a person starts a business, he should plan and know what he can do with his limited capital when it comes to investing money.

 

[Yugocean]

I have never understood why people take loans. They have to mortgage the property to banks. If they fail to pay the loan back, their assets will be confiscated by the bank.

I agree that this is risky, however Business cannot be started by negative thoughts, a serious businessperson will check everything before starting it, and then take the loan. Even Super Rich people take loans, then return with interest; this is how Banks earn income, and pay interest to investors. No loan will result in No business.

 

[Chibson]

Some of the reasons a lot of businesses fail is because they don't have the proper capital of financing certain things in the business process. It is very good to have idea and knowledge of how business works and at the same time having enough capital to finance the business is also one of the most important aspect of the business.

 

[sincerem]

I prefer the option you stated, going for a through saving for three months, to make up the expected capital to start up the business. Rather than, taking loan as a means to get business capital start up. I don't see any positive in taking loans to start a business. Loan is detrimental at early start up, putting you in the frame of meeting the loan and its repayment interest.

 

[Good-Guy]

I agree that this is risky, however Business cannot be started by negative thoughts, a serious businessperson will check everything before starting it, and then take the loan. Even Super Rich people take loans, then return with interest; this is how Banks earn income, and pay interest to investors. No loan will result in No business.

One of my basic rule is to not to take loans when it comes to starting a business. I do agree with that even many rich people take loans because it might be possible they do not want to sell their asset in order to raise capital for their business, but still taking loans is always a risky decision and many people do suffer. I have always planned and made a firm decision to not to take loans but I will rather start small with small capital.

 

[Mika]

One of the primary reasons for business failure is lack of funds, many people are in such a hurry to start a business that they start a business even when they do not have enough funds. If you have enough funds it is less likely that your business will fail because you have enough money for marketing and product development.

 

[Good luck]

Starting business with ones money is very good but I think for a business to grow and flourish well one needs to acquire other means of capital like getting money from cooperative,loans from Bank or even loan from someone that is capable of giving such capital.It will help the subject to work very hard and it will also help the business to boom.

 

[Augusta]

It is always the best to start a. Business with proper loan as you put it. I don't support starting a business with loan because most of the time it does fails.paying back a loan is always a difficult one especially for short terms loans that you need to start paying almost I'mmediately

 

[Chibson]

One of the primary reasons for business failure is lack of funds, many people are in such a hurry to start a business that they start a business even when they do not have enough funds. If you have enough funds it is less likely that your business will fail because you have enough money for marketing and product development.

There are several businesses that failed because of lack of funds. it is very important for people to have the idea and knowledge of how to run a business and at the same time enough funds in order to finance the business. It's therefore very important for people to have good financial source and backup before going into any business.

 

[Sherman198]

Some of the reasons a lot of businesses fail is because they don't have the proper capital of financing certain things in the business process. It is very good to have idea and knowledge of how business works and at the same time having enough capital to finance the business is also one of the most important aspect of the business.

It's very reasonable to always be prepared for some things in a right way. Starting up a business is not something you want to toil with, because you don't know what the business will turn to tomorrow,in terms of expansion. We have to be prepared financially to set up any kind of business, inorder to set it up in the right way.

 

[btaliat]

It is better to save up money for business rather than going for loan as you explained. But it is to be stated that there is nothing like enough capital for a business. No amount is too small or too big for a business. The more you have, the more expanded you business will look. You can only start when you have the zeal and enough but not proper capital to start a business.

 

[Sherman198]

It is better to save up money for business rather than going for loan as you explained. But it is to be stated that there is nothing like enough capital for a business. No amount is too small or too big for a business. The more you have, the more expanded you business will look. You can only start when you have the zeal and enough but not proper capital to start a business.

There's no enough capital for any business as you have rightly said but before starting a business we have to know the worth of our business before venturing into it because it may turn in to an abandoned project per say. Not saying we need so much money for business but several financial analysis should be made.