Post
Topic
Board Economics
Re: How is the capital found?
by
pitham1
on 27/03/2017, 15:43:03 UTC
How can someone who has no capital find the capital needed to start his own business?
Credit, Debt etc. What are alternative ways like?
The best way is to save, that way you will not be in a big risk even if you will not succeed in whatever business you want to try. Desperate people
take it from loans which I strongly disagree, that is a gamblers move and they will take bigger risk just to bet on their skills to run the business
successfully. However, it's their decision and I have nothing to do but respect it but in my point of view it's not advisable.
But getting required funds through saving might take more time.
I believe going for well planned loans would be the right way of achieving funds required for starting up as well as running a business. Many people never bother about initial running costs. They plan up only for initial set up cost. Practically both are very important.

Even if you find lenders to give you money (well planned loans), they would expect you to be sufficiently invested in the business (bring in substantial equity as well). Typically, lenders enter when the risks are lower (not at the start up stage).