Starting a business can be really rewarding. The whole fun of building a business that takes care of you just stimulates a lot of people that they just want to start their businesses even if they don’t have a tangible purpose in the marketplace.
So, people go to the length of getting a lot of money as loan to start their first businesses and that isn’t just good because of a few reasons I will be listing out in this article.
Note: This is not to say that you will definitely fail in your first business venture if you take out a loan, but that there may be a larger probability of failing.
Two significant reasons you should not start your first business with a loan;
1. Lack of experience
You should never start a business, if, to an extent, you don’t know what you’re doing. How much experience have you gathered in sales, marketing, operations, finances, management, and leading a winning team?
It can be really devastating to both the business and your psyche if you end up in serious debt just at your first try in running a business.
Lack of experience too can cause you to start a job, thinking you did actually start a business. A job is a place you go to get work done, a business is a place where you have already created a system that can get that same work done, and way more.
2. Low tolerance level
You will definitely experience failures as a result of a lack of sufficient experience and this, sadly, can shift your focus from learning to cursing yourself out because of what you just ruined.
If you don’t have tolerance for failure, don’t jump into a business that if it fails, would make it really difficult for you in picking yourself back up.
READ: Don’t Start Business with Bank Loan, BOI Tells Youths
Possible workaround to the problem;
1. Work to learn
Yes, I know that you want to go all in, and go in big (even if you don’t know to an extent what you’re doing) but the problem with that is that it is a common theme amongst dreamers. Instead, try as much as possible to gather knowledge and information around that field, or most importantly, about starting a business. Immerse yourself, read books, attend networking events, and don’t just stop learning.
No matter what you do, never take light the power of the process! Your process is just as important. Over time, you just build your experience and your overall financial intelligence – making it easier and easier to create a business that works.
2. Start small
Instead of starting a business that would require a lot of capital, can you actually start something that wouldn’t need you to put in a lot of money? Starting small doesn’t always mean that you’re underrating your ability to do bigger things. It is appreciating the fact that you may not be there yet, but that will not stop you from putting in the work, that won’t stop you from enjoying every bit of the process while you grow, too.
The most important thing is the process, and that should be worth more to you than even your final destination (which doesn’t exist anyways), or success. Because, when you learn a whole deal from the process, and you are patient in letting that experience shape you, you become someone who can replicate the success that comes with it.
So, don’t kill yourself trying to start the “next big thing” the world has ever known. I am in no way saying that you shouldn’t think or vision big, but understand that an ocean is comprised of just tiny droplets of water.
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