Getting started with one’s own business is quite hard especially if you are starting out a single proprietorship. At one time, I told my husband of my dream to start my own business, particularly one which involved the buying and selling of fashionable clothes and trendy accessories. I actually got the idea from a distant cousin who started out a small business selling all types of clothing items which she bought whenever she travels to other places, a business which right now has become so successful that she even expanded into wedding planning and catering for all sorts of special gatherings.
My husband, who is a commercial loan account officer at a bank, and whose clients range from small time businessmen to large corporations, strongly advised that I should start out a business by making sure I have enough capital. This can be secured either from one’s own private funds or by trying to find business partners who can help with raising up the required funds. This is because one needs to have enough start-up capital to buy the things needed to start the business as well as additional working capital in order to get the business going. More often than not, businessmen tend to resort to securing small business loans in order to get the working capital they need. They usually secure a short term loan for the working capital they need in order to stock up on inventory. The additional working capital can also be used for operating expenses, to keep the business going even through the lean months when business is not that in-demand.
One important thing, though, which my husband reminds me is that in no way should these funds be used other than for the business itself, and that working capital should never be used for long term investments such as buying land or equipment, even if they are intended for the business, otherwise this may adversely affect the business. Learning the basics might be a bit difficult for first time business venturers, but one can easily look up an investment directory on the internet.
My husband, who is a commercial loan account officer at a bank, and whose clients range from small time businessmen to large corporations, strongly advised that I should start out a business by making sure I have enough capital. This can be secured either from one’s own private funds or by trying to find business partners who can help with raising up the required funds. This is because one needs to have enough start-up capital to buy the things needed to start the business as well as additional working capital in order to get the business going. More often than not, businessmen tend to resort to securing small business loans in order to get the working capital they need. They usually secure a short term loan for the working capital they need in order to stock up on inventory. The additional working capital can also be used for operating expenses, to keep the business going even through the lean months when business is not that in-demand.
One important thing, though, which my husband reminds me is that in no way should these funds be used other than for the business itself, and that working capital should never be used for long term investments such as buying land or equipment, even if they are intended for the business, otherwise this may adversely affect the business. Learning the basics might be a bit difficult for first time business venturers, but one can easily look up an investment directory on the internet.
2 comments:
Great to hear that if u gonna start business...Sometimes not only the sufficient fund but the time commitment...good luck then
Well its fine to have your own business and also to have business partner, but you need to think need to take of many things while finding a partner for you and you have to follow a proper strategy as well.
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