Why it is wrong to start up business on loan.
Starting up a business comes with lot of risks but launching a new business with loan will only put you in danger. A loan debt makes it harder for a business to succeed.
Everyone wants success when starting up business but no one prepares for failure. Most people think when you take a loan you will have money to launch a business and when it becomes successful they can pay back the loan but one thing people don’t realize is the plan for success may end in failure if one launch a business on loan.
If the business fails, it will be very difficult to pay back because nothing was generated from the money invested into the business.
Don’t take loan at the start because if you do and things goes wrong, you will be in a big problem. The loan will force you to get a new job, work very hard for years with no time to rest in order to pay back and by the time you are able to pay up you may feel it's better to give up and enjoy the benefits the job provides.
Only morons start a business on loan. -Mark Cuban.
So loan should be used on an existing business that needs to be expanded to meet up with the customer’s demand and not to be used to start a new business that might fail.
It is also advisable to plan for failure, not every business is a sure success and loan should not be use to launch a new business to avoid problem if it doesn’t turn out to be success.
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