A client comes to me with a potential business idea - Fishery. She has conducted her market research. It is a viable business. She has written down her business plan and the rest of them. Here is are the main issues:-
a) Experience - She lacks the experience in fishery. All she knows about the potential business is hearsay, her research both online and offline, and the Facebook groups she joined. She claims she's going to have a guide from a friend who has done the business in the past.
b) Funding - She has no funding or rather, she has less than 10% of the funds needed to kick-start the business. She is therefore considering debt financing.
There are two problems faced by people who come to you and if he wants to continue the business, what steps should he take?
1. ExperienceFor this problem he can study before starting a business, because in my opinion the fish farming business is not too difficult to learn and currently there are many places where he can go to learn how to fatten, provide fish feed and medicine, because what I you know fish farming is also the same as the business of fattening chickens, goats and cattle, although the way it works is slightly different.
2. FundingFinancial issues are a little more sensitive to discuss, especially when the economy is unstable. My advice is to avoid loans that have large interest rates such as loans from banks or other places, it's a good idea to try to find capital loans from the closest people, be it family or relatives.
In conclusionIf indeed he has done research and has made a plan for the business, then he can take a loan as I suggest because the monthly burden will be slightly lighter than a loan from the bank. But most importantly he has carefully considered the business he will run.
Starting from production costs to the sales stage when the harvest arrives, because if no one wants to accommodate the harvest it is feared that it will be difficult to market the harvest. In the end, he will have difficulty paying off the loan and will make it difficult for the business he is running, because he cannot take out the crops and there is no place to accommodate them.