Do You Have Enough?

Capitalization has always been one of the biggest hindrances to most budding entrepreneurs. In my opinion it is much easier to think of what business to put up. But when you think and list all the expenses you have to incur in starting up your business, that’s where you suddenly slow down a bit and check if you have enough personal funds for it and if not, where you can get financial assistance.

In a way, I think you suddenly go through a reality check. You would think twice before deciding if that specific business is the best one for you. Realizing the risk that you have to take makes you a bit cautious. You then become more careful and examine possible strengths and weaknesses of your business plan, whether it is written on paper or just in your head.

In securing a financial loan, it is important that you apply for the loan at a financial institution that offers the least interest rate. That’s one way of reducing your cost and earning better.

Again, capitalization is difficult. You would always have to check all the possible ways to save on expenses so you can make all of it fit to your available capital and so you can recover you startup expenses sooner. Raising sufficient capital is also difficult especially when you don’t have equity to back you up. Most banks and financial institutions would ask for collaterals. Of course, there are also other channels but their rates would be higher than the usual or higher than the market rate.

Whatever course you take, just remember to pursue it only if you are positive that you will be able to recover your capital, be able to pay up your loan on time and earn well enough to make the risk you will take and to make the efforts you put on your business well worth it.