Do all businesses need loans??

You pretty much answered the question yourself.

If I were you I would setup a list, whether it be in excel or openoffice. But the list will contain all the type of products you need to throw the party and the cost of each one. Even right down to the different colors of ribbons,tape and ect.. Don't leave anything out(even right down to the toilet paper you used in the bathroom of your shop)..call the list supplies.

Then do the same for how much rent,electric and cleaning supplies will cost for your shop in another excel sheet and call it in store expenses. Write one up for at home expenses and compare them.

In another excel spreadsheet add up weekly/monthly advertisement costs..which will include website hosting fee,local newspaper advertisement,cost of in store banners and ect..

and ect..

This will let you know were you stand expense wise and whether you really do need a loan to startup your company...

But honestly I would not let all that hold you back..think do you really need a store front right off the bat? If your not wanting the added expense of rent it might be something that can be launched from right within your home? Start small and just start doing, jump into it head long and start making the money you already know you can make with your expertise.

Many million dollar successful companies and brand names today started in the basement and garages of their homes.

I would like to add. I don't think you need a small business license till you actually start making money..so for the first year track all expenses,even right down to the gas you use to pickup supplies, add them up and compare it to the sales you made..if sales is in the plus after the expenses then you need to pay tax on it..then you can apply for a small business permit.

 

Start small but think big! I would rather start the business with my own funds if there's enough of that rather than seek a loan. This way, you won't have to worry about needing to repay the loan, interest and all that, in case it doesn't go well.

 

Start with what you have, see how things go and then when you're sure the business is going to take off and you want to expand, get a loan. But only if you really need to.

 

yaa i'm going with that idea too i'm not taking a loan , i'll go into a partnership until i make enough revenue to buy the other share ....

 

you man are very bright and i truly like your advice , it's extremely helpful and professional.......

 

there are many business which requires no money initally , .... capital involved can be 0 for many intriem firms

 

could you give me some examples of these businesses ???

 

not necessary

 

No I dont think so! There are business of two nature one is related to through providing Services and other through Investment! If you are lacking the investment feature then you can try to earn from services to form the capital in order to invest that money towards your business.

 

From personal direct experience, if you are starting a business, it's better to save as much money as you can, while still having everything set up properly. The reason is, you may need your cash later on, and by then you may regret having spent in something less important (therefore, also make an exhaustive list of your priorities before setting up your venture). There are several of websites which counsel budding business people, some of them are:

mynewcompany dot com
sba dot gov/smallbusinessplanner
myownbusiness dot org

Remember, cash is the blood of business, use it cautiously.
All the best

 

Now people do not invest their own money to start a business because the fear of loss and they start with bank loans or any financial firm or private lenders.it is also good idea some times but if you can afford the risk then start with your own as capital so you don't have to pay the interest for your loan.

 

Starting with your own capital can help as sometimes there is more emotional attachment to the money as you worked hard for it and may put more effort in to make it work. Money which someone has given/loaned you is often easier to spend be reckless with

 

if you got really god business you think would bring in good profits and you are certain of that, thhen by all ways go for it, what's use of money of you keep it not used! invest it in a good way to bring even more money!

 

Thanks guys for all your help , i think you guys are right why take a loan when i don't need it ... its just i have heard that its usually better if you do , but i hate to feel in debt all the time ....

 

Most people are telling you to do what you can with what you have. Now this would normally be great advice. It was also mentioned that you should take a loan just to gain business credit that will enable you to gain bigger loans if needed down the road. Here is what I would do.

I would NOT take a loan. Mainly because you do not need one. You said that you have sufficient capital to get started. Use it.

If your business starts to make money which I am assuming it will or you probably would not be starting it to begin with. This of course is contingent on the research that you did prior to starting out. You will be able to expand if needed with little or no help from a bank. Not only that if you do need to take out a loan after starting you can now use the business as collateral which will keep your personal property yours.

 

i get your point of view but if it gives me higher credits wouldn't be better to take a small amount , and pay it back on time , so later when i really need money i don't have a sufficient amount i would pay that back , thats just pure genius i think i'll go with that plan ... thank you

 

Going into debt is never better than being able to pay for what you need. Some people believe that they need credit, but in reality they need to be able to live. Living in debt is not a good way to go. But, if you feel that is the only way you can operate then go for it. I would rather start with what I have and move forward from that.

 

most people need loan for start business, some from them have great idea with write e-book how become rich with loan...is marketing and strategy

 

I would get loan and use your money to invest

 

Not all businesses need loans, but a large majority of them do.

Don't be embarrassed that you need a load for your business