Take loan and start a new buisness

[Hania iman]

Dear i think it is a good idea. In every business we have to take risks. Taking a loan is very risky but if business run then we can pay loan and also earn profit and our future will also become stable. But for this we must have experience about business that we are going to do. Please tell me your opinion about it.

 

[Kingsley]

When it comes to accessing loans generally one will be advised to use it wisely and for the purpose at which the loan was needed in the first instance. But the reality is that somethings when we access this loans we just get to spend it on things we did not initially plan to use it. But when it comes to accessing loans we must be very disciplined because the money will definitely be paid back and not just the principal amount but the principal amount and the interest together. Hence we are suppose to really thing very well and plan very well before accessing loans to ensure that the money is used for what it is suppose to be used for. But I for one will not advise anyone to access laons for a new business because the new business has not acquired any experience and if it is hit by any major challenge it could affect the business in a way that it may not recover, and the owner may become bankrupt. I will suggest that the one should either borrow from friends and family members then start gradually. Or one can contact other people with like minds ro sponsor the business,

 

[btaliat]

Taking loan to start up a business is one of the riskiest step that can be taken by a business owner. Just like the saying everything is a risk, it may go in your favor or go against you

The probability that a business runs with a loan will succeed is the same as that it won't succeed. There are some people that have good business plan but the unforseen circumstances have ruined their plans making them to be unable to repay the loan.

There are many people as well that have made fortune using loan they borrowed. The richest man in Africa, Aliko Dangote borrowed money from his brother to stsert his business in the 80s. Now he's the richest man in Africa and even top 50 in the world.

This two instances will let us know that loan can go either way when we depend on it for starting up a business. It is better utilized to expand a business rather than starting off a business.

 

[GulliveR]

It would help if you understood that taking out a business loan is a precarious business.

 

[Abigael]

Taking risks is really important for one's growth. But some risks are just too dangerous and not worth it. This is because you may not have calculated the risks well hence it brings you more trouble than the benefits you expected. Taking a loan to start a business is one of those risks that need to be calculated so careful.

Remember that at the start of business, you are not really sure if you will actually make profits. Most people start with a high euphoria and take big loans but forget that business planning is the most important thing at the beginning of business.

Therefore, if you have resorted to taking a loan to start business, then plan it well. Make sure that it has all the qualities to make profits. Such as enough capital, good location, high demand and proper knowledge of how to start and run it. If you find a glitch in any of these areas, you better avoid taking the loan.

I always prefer looking for other sources of business capital other than loans. They include; taking time to make some income and save, selling things that you don't use anymore or asking from friends and family to fundraise the money for you. I am sure that if you give it a try, you may find a less risky source of business capital.

 

[moonchild]

I don't think it's a good idea at all to take a loan and start a business, because you're not sure if your business will succeed or not, you're just playing with probabilities when starting a business, no assurance, nothing at all.

So it's advisable to at least start small with what you have most you guys want to start big when you did not have a comprehensive market research, as a new business owner you need to be willing to do a lot of things that don't scale because your business is not established, but when your business turns to an enterprise you can then take in investors money and expand your company to a bigger horizon.

When you take a loan to start a business you're conditioning yourself not to try out new things because you wouldn't be willing to try out new stuffs so as not to spend the loan

 

[Good-Guy]

The fact is that I have always been reluctant to take loans or borrow money due to various reasons. One of the main reasons is bad debts and legal problems that you might face if you fail to pay the loan back. Obviously taking loans is quite risky but I do not think that risk is worth it. Many people have gone bankrupt after borrowing money. It is far much better to suffering from financial problems after you invest your own funds and suffer from losses. However, suffering from bankruptcy is one of the worst thing that can happen to you. Moreover, many people often also get disrespected by family and friends after they borrow money from relatives or friends.

This is why even borrowing a personal loans from a family member or friend is also a bad idea, according to me. Many people often calculate the risks associated with business investments and take loans to star business. They believe that they have calculated their risk in a great manner, but still end up suffering from loss and as a result of that, they get into bad debt. This is why I do not like borrowing money at all until or unless I am 100 percent sure that I have the ability to return that small amount.

 

[Kendy]

I will honestly not advise any individual to get loans to start a new business. The only way I could suggest this is if the individual is a seer who can read and predict the future exactly as it would be but it is impossible because the future is unpredictable just like the wind. The pandemic that caused a lot of setback and chaos was not foreshadowed by anyone but it just came suddenly and changed our lives completely. Till today, the negative impact of the covid-19 pandemic still lives amongst us. Taking loans to start a new business be it on a small or large scale could and would be so pressurizing, this is because you are still trying to get the business rooted, trying to get adapted with the environment and the inhabitants, and you would still be trying to gain customers, this is because there will surely be other competitors and at the beginning, it would be hard to get customers except you bring about more creativity and innovation, that is, something that would make potential customers to be drawn to your products and services. I condider obtaining loans as an improper way of setting up a new business.

 

[eldavis]

Taking a loan to start a business is not the only option honestly, you could also get the needed money for your business by working on other places. Back then I did alot of side hustles just so I can get the needed money to start what I needed. Yes it took time but it was worth it cause I also gained experience form it. I know for a fact that life has to do with risk, and risk is something we can't really avoid, but there is also calculated risk. Those who take loans I believe have should also have a back up plan as to how to raise the money if the business does not go as planned.

 

[Skysaint]

Laughs. If things were that easy then I guess why there's any poor individual in our society today. Alright, you only talked about the positive aspect or let's say you took an optimistic view regarding the topic you just brought up but have you stopped to asked yourself what will happen or become of the person who took a loan to start up a business if the business fails to go as planned?
It's not always about the good side and you should know that a business faces most challenging obstacles when they are in their infancy stage. Anything might just happen and you find reality being the opposite of what you had imagined.
Taking a loan to start up a business ain't the only way and if I am in a position to advise you, I will encourage you to save up and start the business yourself and in this way you will be more concentrated and will worry less about any external influence or pressure.
I believe that taking loans can only be encouraged when you want to upgrade an already established business that has proved to be lucrative. In this way you will be atleast eighty percent sure that the business will work out as planned.