Considering current economic realities, borrowing money to start or finance a business is no longer such a big deal. It does not even matter how small the business is. And this is because even businesses that were relatively easy to set up have now become capital-intensive.
“Think big, start small.”
But even starting small has become capital intensive. So either way, you have to take a leap of faith.
“It’s okay to borrow.”
Many people have viable ideas that they leave to die because they cannot finance them and have ruled out the option of borrowing. You are not borrowing to satisfy a craving; it is for an investment that will bring in more money.
Borrowing has risks. Yes, but business comes with risks, whether you borrow to finance it or not. Every business decision has its risks. Many businesses fail daily, but borrowing money to start a business is hardly a reason why those businesses fail. Of course, there is a degree of pressure that comes with borrowing money, but this is why it should be a well-thought business with a promising ROI. Whatever you do, please do not borrow money to finance your fantasy. It never ends well.
In the latest episode of our Money Talk Series, we discussed borrowing money to start a business. Do you think it is a smart decision or not? Watch the video and join the conversation on YouTube.
