This is one piece of advice that most people will not give beginners in businesses. Starting a small business exclusively on loans can frustrate you, especially if you want to earn a living from the same business. If anything, you might end up paying the loan longer than you thought.
I guess you are now wondering what other option you have to have your dream business operational. I came up with a few recommendations to give you a way forward:
- Trust well-wishers
Yes, good people still exist. You may think that people are too busy with their businesses and that they will not support you. People don’t support your business because they are good. Your vision attracts them.
Come up with an attractive and realistic vision and cast it as a net in the ocean. I assure you that you will have people donating to assist you. However, if you look like you are born to fail, nobody will spend it on your mind.
- Venture capitalist
Some people have enough money for their use. All they want is to sell their name as a brand. Such people give you money at a given percentage of the total investment amount. You then agree with them on how you shall enjoy the shared profit. In most cases, they only get a small share of the profit. They also don’t interfere with your operation.
Co-financing refers to the idea of coming up together to share the financial cost of the business. In this case, the business will be owned jointly. Depending on how smart you are, you can start with one business but end up with more so that each individual remains with a whole company for a sole proprietorship.
Non-loan financing might is very lucrative. The good thing about it is that you can start enjoying your profit from the first month of operation. You don’t have to have a long journey of loan payment.