You are toying of the idea of starting up your dream business for quite some time now but you’re scared to make the first move because you don’t know where and how to begin. Don’t worry because you are not the only person in this world who feels that way. It’s okay to acknowledge the feeling and feel overwhelmed at the same time but it is also important that we take sound decisions since it is our money and life investment that is at stake here.
Borrowed Capital- Many business owners have this mentality that it is okay to start a business using borrowed capital whether it’s from the bank or family and friends. Well, it may work in your advantage or disadvantage depending on the type of business that you are about to set up. If you are looking into setting up a business that requires you to shell out money on advanced rental fee, space renovations and salary you have to be honest enough to admit that it’s impossible to pay for the loan right away.
Banks very seldom offer business loans for startups because of its high risk. If a family member or relative has decided to loan you the capital then you have to be transparent regarding payment dates and timelines because you would be needing more time before you can start earning. Do not make false promises and be a man of your own word. Many relationships have been jeopardized because of money issues so avoid burning bridges.
You can also offer for a joint partnership with an equal share of capital so you won’t be solely responsible in case something goes wrong with the business. Each business partner has their fair share of accountability.
Lack of proper guidance- A lot of new entrepreneurs are prone into making the wrong choices because they think that it’s the right thing to do where in fact it’s the total opposite and no one is guiding them to the right path. Finding a business mentor or seeking advice from business experts will help you a lot. You can check out company formation Singapore regarding the services that they offer.
Easily discouraged- If you decide to venture into business, you have to understand that you will go through good days, not so good days, bad days and even worst days and you have to be prepared in all of these days. Save money during good days to help manage losses and breakevens during bad and worst days. It is also important that you maintain a positive attitude at all times by staying away from negative people because it’s easy to get discouraged if you keep losing your hard earned money.