Would you prefer getting a loan for a startup or getting an investor? - page 6.

Bobrox

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Quote from: Yatsan on May 27, 2024, 05:23:53 AM

Personally I prefer finding an investor. Well yes profit won't be as big as expected but at least it would be a safer option. Taking a loan would be a good thing if you really see huge potential to what you are trying to cook because it would be a gamble if you're pushing the risks up. If your investment won't generate enough to pay the interest then basically you are putting yourself in huge debt. This is why I believe finding an investor would at least balance risk and profit ratio, at least temporarily. Just depends on where you would be using the money actually. There are odds with taking a loan and same goes with finding an investor.

For example, you are aiming for a franchise. If that franchise has enough popularity and organic customer or client, then it would be fine taking a loan to start things up. But if it literally a start up, then you might consider the other option 'coz it will help you in all aspects; growing the business, and help with finances, bills, and capital.

For start up business better finding an investor than taking loan but not easy how to make investor believing with our start up business, need time and hard work progress to make an investor believing and want to invest their money. I think looking forward with start up business progress if has bigger ratio to earn much profitable in the future is not problem getting loan behind difficult to find an investor. In other side, has relationship with an investor we must spending profitable with them depend on agreement release usually around 50% for investor and left 50% for the start up business owner.

For me, prefer taking loan and earn fully profit for my self than finding an investor and must spending our profitable with them continues until how long our start up business running. You want to earn 100% profitable for your self its better looking for loan but want to spending profit of your start up business looking for investor support.

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It depends on the person. If he has a business that he wants to build and knows that it is very small, it is better to just get a loan and use the loan to start the business that you want, because we are the only real ones. Who knows if we can really turn the business around or grow it?

Now, if you are worried about turning it around properly just because you heard that the business is good or trending now, I think it is better to find a business partner or investor; he is the capitalist, and you are the one who will manage the business, and it is in agreement with you where you agree.

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Quote from: Marvelockg on May 27, 2024, 05:11:37 AM

One of the major problem an average person that has an incredible business idea faces is the ability to raise the initial capital that's required to bring his ideas to life. and in solving this challenge, the available option has always ranged from iether taking a loan from a financial institution or seeking for investors that will take a particular percentage of the company and will in return provide the necessary financial support.

Considering these two options that's one of the easiest to get, taking a loan sometimes comes with a whole lot of strict terms and conditions and with the high interest rate expecially in my region, it's even deficult to put that as an option. Looking at the case with most investors who are just looking for ways to double there already dormant funds, and care little about the owner of the business, it seems to be another problem dealing with them as most of the ratio they intend getting from you seems to be too big expecially when they already know that your proposed business have an higher chance of doing well in the long run.

I know that as a start-up, these sources could potentially help your business to upscale at a very sharp pace and that from the angle of allowing an investor to buy into your business, you could get other added advantage like getting advice and connection that will help boost your business but I'm just curious to ask;

If you have a well thought out business idea but don't have the needed capital to keep it functional, is getting a loan the best option or looking for interested investors?

Would trying to start up the business in your own little way the best option or can you consider bringing a third party into the business who will just serve as a partner that contributes just money?

Loan interest is very high too in my region and for that reason, many people were unable to pay the credit that they have taken and ended with giving up on their business idea while having to pay the debt for years.
Banks have their place in business but for new businesses started by regular people, banks aren't the great choice because they are too risky for regular people. If you find an investor and business goes wrong, you aren't forced to pay the debt to an investor, the financial loss is on the investor but on the other hand, if a business succeeds, you will have to share the profit with the investor. If you use a bank, all profit stays with you but you carry all the responsibility too and most of the time it's very hard to pay the debt that a failed business leaves. I would choose to get an investor every day. Besides financial support, you get new connections and meet new people.

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Quote from: Marvelockg on May 27, 2024, 05:11:37 AM

edited

I know that as a start-up, these sources could potentially help your business to upscale at a very sharp pace and that from the angle of allowing an investor to buy into your business, you could get other added advantage like getting advice and connection that will help boost your business but I'm just curious to ask;

If you have a well thought out business idea but don't have the needed capital to keep it functional, is getting a loan the best option or looking for interested investors?

Would trying to start up the business in your own little way the best option or can you consider bringing a third party into the business who will just serve as a partner that contributes just money?

The bold part is why it is way better to get an investor over taking a direct loan, an investor will not only bring with him the money needed to make your idea a reality, they will bring expertise you do not have and a bunch of contacts you can use to make your idea grow.

Now it is true that you will have to give a significant portion of your business away, but taking into account that without their money and expertise your business idea may remain an idea forever, I think this is a fair trade.

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Yes, both are very important things. Personally, I wouldn't want to build a business on loans, but if that was the choice, I would probably part with the money for development and attracting investors. After all, both are very important things. In fact, when we have developed a startup, I don't think it would have been successful without investors in it. However, attracting investors without a startup, I think it will be difficult to convince investors that this can be a very good project. However, it is too risky to borrow money for just one of them. It's best if you borrow money, think about how the startup can run, and have money left over to attract investors.

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Most start ups would rather get loans but the problem is that most banks don’t want to lend out money to start ups because a large percentage of them fail and when it fails they don’t get their money back.

Getting a loan for an old business is different because those actually generate profits right away. Say somebody getting a loan to finance a McDonald’s location. That is pretty low risk to the bank. But a start up is completely different because it’s an idea which might not pan out.

So they have no choice but to get investors and sell them some equity in the business. It’s because the investor is taking a huge risk in lending out money.

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Quote from: bSpend on May 28, 2024, 05:33:18 PM

Quote from: Marvelockg on May 27, 2024, 05:11:37 AM

If you have a well thought out business idea but don't have the needed capital to keep it functional, is getting a loan the best option or looking for interested investors?

Would trying to start up the business in your own little way the best option or can you consider bringing a third party into the business who will just serve as a partner that contributes just money?

This is a very tricky one to be honest, but I think a smart way to look and answer this question is to first consider the type of business in question.

It is impotant for us to understand that business ideas are categorized, and what determines whether a business idea needs a loan or investors depends on the category of the idea, there are businesses an individual can manage or run successfully, this type of business need loan.
But a business an individual can not run alone, but needs alot of hands and ideas to come together to ensure success of the business, this one requires investors, and this type of businesses usually evolve to become a big company in the future.

In my opinion, this is more appropriate, because it is not always the right path to take in all things, as well as in terms of building a business, it could be that we are able to do it ourselves or have to work with a handful of groups, so in terms of boosting the business, sometimes we also need investors or in certain businesses we only need loans.
I think it all depends on how big or small the business is and because it can also calculate the risk so if we are able to face the risk then taking a loan is not a bad thing.

ancafe

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Quote from: bSpend on May 28, 2024, 05:33:18 PM

This is a very tricky one to be honest, but I think a smart way to look and answer this question is to first consider the type of business in question.

Business mitigation is important so that when making the decision to take out a loan we don't have problems in the future and we must understand the business we want to run.

Quote from: bSpend on May 28, 2024, 05:33:18 PM

It is impotant for us to understand that business ideas are categorized, and what determines whether a business idea needs a loan or investors depends on the category of the idea, there are businesses an individual can manage or run successfully, this type of business need loan.
But a business an individual can not run alone, but needs alot of hands and ideas to come together to ensure success of the business, this one requires investors, and this type of businesses usually evolve to become a big company in the future.

On a small or large scale, we don't need third party investors to run the business, as long as we have capital that we can use. Unless the scale in question requires the support of other documents such as permits which are difficult to obtain, so in conditions like this we need another party as a person who is able to take care of all needs. Business ideas have a level of success and it must be seen according to our ability to develop.

I think we need to make mitigations and plans for the business we run so that when we want to make a move we know what steps to take. There are many business people who fail because they don't understand the business they are running so they are unable to see the adjustment steps to achieve success.

bSpend

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Quote from: Marvelockg on May 27, 2024, 05:11:37 AM

If you have a well thought out business idea but don't have the needed capital to keep it functional, is getting a loan the best option or looking for interested investors?

Would trying to start up the business in your own little way the best option or can you consider bringing a third party into the business who will just serve as a partner that contributes just money?

This is a very tricky one to be honest, but I think a smart way to look and answer this question is to first consider the type of business in question.

It is impotant for us to understand that business ideas are categorized, and what determines whether a business idea needs a loan or investors depends on the category of the idea, there are businesses an individual can manage or run successfully, this type of business need loan.
But a business an individual can not run alone, but needs alot of hands and ideas to come together to ensure success of the business, this one requires investors, and this type of businesses usually evolve to become a big company in the future.

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Quote from: Marvelockg on May 27, 2024, 05:11:37 AM

One of the major problem an average person that has an incredible business idea faces is the ability to raise the initial capital that's required to bring his ideas to life. and in solving this challenge, the available option has always ranged from iether taking a loan from a financial institution or seeking for investors that will take a particular percentage of the company and will in return provide the necessary financial support.

Considering these two options that's one of the easiest to get, taking a loan sometimes comes with a whole lot of strict terms and conditions and with the high interest rate expecially in my region, it's even deficult to put that as an option. Looking at the case with most investors who are just looking for ways to double there already dormant funds, and care little about the owner of the business, it seems to be another problem dealing with them as most of the ratio they intend getting from you seems to be too big expecially when they already know that your proposed business have an higher chance of doing well in the long run.

I know that as a start-up, these sources could potentially help your business to upscale at a very sharp pace and that from the angle of allowing an investor to buy into your business, you could get other added advantage like getting advice and connection that will help boost your business but I'm just curious to ask;

If you have a well thought out business idea but don't have the needed capital to keep it functional, is getting a loan the best option or looking for interested investors?

Would trying to start up the business in your own little way the best option or can you consider bringing a third party into the business who will just serve as a partner that contributes just money?

It depends what you're after really and how accessible funds are to you in particular. Banks are often quite skeptical and protective about lending large sums of money on untested ideas. If you went to them with just a plan on paper, you'd be lucky to get offered a loan but the rates would be extremely high too - if you're asking for say $50k+. If you go with an established business that just needs a bit more capital with a solid expansion plan in place, you'd probably be better going for a loan as you won't have to surrender any equity. If you get an outside investor, you're likely to have to give up a portion of the ownership, in the form of shares, as a trade - along with paying back all the borrowed capital and having a believable business plan too.

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Quote from: Marvelockg on May 27, 2024, 05:11:37 AM

One of the major problem an average person that has an incredible business idea faces is the ability to raise the initial capital that's required to bring his ideas to life. and in solving this challenge, the available option has always ranged from iether taking a loan from a financial institution or seeking for investors that will take a particular percentage of the company and will in return provide the necessary financial support.

Considering these two options that's one of the easiest to get, taking a loan sometimes comes with a whole lot of strict terms and conditions and with the high interest rate expecially in my region, it's even deficult to put that as an option. Looking at the case with most investors who are just looking for ways to double there already dormant funds, and care little about the owner of the business, it seems to be another problem dealing with them as most of the ratio they intend getting from you seems to be too big expecially when they already know that your proposed business have an higher chance of doing well in the long run.

I know that as a start-up, these sources could potentially help your business to upscale at a very sharp pace and that from the angle of allowing an investor to buy into your business, you could get other added advantage like getting advice and connection that will help boost your business but I'm just curious to ask;

If you have a well thought out business idea but don't have the needed capital to keep it functional, is getting a loan the best option or looking for interested investors?

Would trying to start up the business in your own little way the best option or can you consider bringing a third party into the business who will just serve as a partner that contributes just money?

When trying out to materialize an idea that you do have in mind but you dont have that capital to start then speaking on physical world then you could potentially be that finding some potential investor but its not something that easy as it sounds on which you would really be needing to provide everything about the business and overall. This could really be done also in online but the main issue on online is that
you cant really be easily to find someone to invest into something that they cant be able to see nor having that kind of assurance or security of their funds. So it would really be having that better odds or chance on getting some investor on offline or physical but just like been said that its not something that would really be easy. You would be needing to prove out everything.

On the moment that there's someone who didnt been able to tend to invest then this is where you would be considering yourself on taking up a loan. It would be your last resort
and of course risks management is needed whether it would be something that worth the risks or not.

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Quote from: el kaka22 on May 28, 2024, 01:33:52 PM

Finding an investor isn't always an "option" for many people. I mean I had so many business ideas before, just going around asking people to give you their hard earned money, for % of just your idea makes no sense. You ask them to pay you for your idea and that is just idea nothing more.

This just reminds me of another thread which is like I have so many ideas to become rich but I don't know how to do it and that's actually the problem we have to make everything right to achieve what we want to and in the financial journey getting capital is going to be hell for someone who doesn't have financial support from their family side. As I mentioned previously even if you made up your mind and getting loan still it is not going to be easy cause bank doesn't give loan to everyone especially for startups until they get some valid collateral as assurance so in that case od default they get something to seize and recover their lend amount.

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Finding an investor isn't always an "option" for many people. I mean I had so many business ideas before, just going around asking people to give you their hard earned money, for % of just your idea makes no sense. You ask them to pay you for your idea and that is just idea nothing more.

This is why most people can't find a way to get investors, since they have no working product to show. In that situation, most of them do not even look for a loan neither, they could ask for a loan from a bank, but they do not trust themselves, I didn't, that is why they get nothing. But if I know that something will make me some money, then I guarantee you that I would just straight up look for something like a loan, if possible for a long term, it would be a lot better.

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Quote from: Yatsan on May 27, 2024, 05:23:53 AM

Personally I prefer finding an investor. Well yes profit won't be as big as expected but at least it would be a safer option. Taking a loan would be a good thing if you really see huge potential to what you are trying to cook because it would be a gamble if you're pushing the risks up. If your investment won't generate enough to pay the interest then basically you are putting yourself in huge debt. This is why I believe finding an investor would at least balance risk and profit ratio, at least temporarily. Just depends on where you would be using the money actually. There are odds with taking a loan and same goes with finding an investor.

For example, you are aiming for a franchise. If that franchise has enough popularity and organic customer or client, then it would be fine taking a loan to start things up. But if it literally a start up, then you might consider the other option 'coz it will help you in all aspects; growing the business, and help with finances, bills, and capital.

Agree. Too risky to get a loan if failure is inevitable since it's a start up business it needs trial and error to assess whether it's worth it to continue or notbecause here in my place a lot of businesses have failed for some reasons and what's interesting is that they use loan money for that and since it is a loan then it needs to be repaid and that's when they take another loan again and again and again. Option two would be better as investors will decide if your business is worth it to invest in and of course since you are looking for investors then I assume that you are ready enough to take risks and stuff to take advantage of the opportunities.

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Quote from: Marvelockg on May 27, 2024, 05:11:37 AM

If you have a well thought out business idea but don't have the needed capital to keep it functional, is getting a loan the best option or looking for interested investors?

If I have a well thought out business idea which I think is very genuine, getting a loan will not be a bad idea and as well, looking for an interested investor will also not be bad either but before taking the loan I will have to consider the terms and conditions been set by the loan giver whether it is what I will be able to cope with, if I can not cope with the terms and conditions or the interest rate, I will switch back to an investor who has like business idea as mine. However, the whole thing depends on someone's location because here in my place, no one will be interested to risk their money on your theory ideas as an investment. In such cases, loan will be the best option if one is ready to face whatever the outcome might be eventually.

Quote

Would trying to start up the business in your own little way the best option or can you consider bringing a third party into the business who will just serve as a partner that contributes just money?

Trying to start up the business with your own little effort will elongate the process and someone with a reasonable capital might steal and takeover that idea from you if care is not taken. I know it takes process to build an investment or any business but if the second option is available, I will definitely go for the second option and kickstart the business with a force. If the agreed percentage with someone ready to provide the capital is favorable, I will gladly accept. Providing capital for a business idea not your own is a risk that not everyone would like to venture into. If someone agrees to partner with me, I will go for that than to try to start with a little beginning.

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Quote from: Marvelockg on May 27, 2024, 05:11:37 AM

One of the major problem an average person that has an incredible business idea faces is the ability to raise the initial capital that's required to bring his ideas to life. and in solving this challenge, the available option has always ranged from iether taking a loan from a financial institution or seeking for investors that will take a particular percentage of the company and will in return provide the necessary financial support.

Considering these two options that's one of the easiest to get, taking a loan sometimes comes with a whole lot of strict terms and conditions and with the high interest rate expecially in my region, it's even deficult to put that as an option. Looking at the case with most investors who are just looking for ways to double there already dormant funds, and care little about the owner of the business, it seems to be another problem dealing with them as most of the ratio they intend getting from you seems to be too big expecially when they already know that your proposed business have an higher chance of doing well in the long run.

I know that as a start-up, these sources could potentially help your business to upscale at a very sharp pace and that from the angle of allowing an investor to buy into your business, you could get other added advantage like getting advice and connection that will help boost your business but I'm just curious to ask;

If you have a well thought out business idea but don't have the needed capital to keep it functional, is getting a loan the best option or looking for interested investors?

Would trying to start up the business in your own little way the best option or can you consider bringing a third party into the business who will just serve as a partner that contributes just money?

if there is an opportunity or an acquaintance who can be found to invest in the business we plan to do, let's not miss that chance and try to give a proposal, also make sure that the business you are planning is feasible so that they will be more interested in investing, but if we don't know anyone or can find anyone to invest, there is nothing wrong if we get a loan to use to build the business we want to do but it is risky because you are the only one liable to pay the money you borrow and of course the business will start , it is possible that there will be a big adjustment so it won't be that fast before the money you borrowed is returned.

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I prefer to use my money first for startups. After my business starts running and growing, I may think about getting a loan to develop my business. But as much as possible, I will not borrow money from third parties.

That's because I think about how hard it is to pay back the loan every month. Business will not always increase and sometimes business will look stagnant and not move at all because of competition. That's why if you want to get a loan to start a business, you have to think about it first.

We should start from the capital we have so we don't think about loan problems. Many people fail in running their businesses because they have difficulty paying their loans. But if you are confident in what you are doing, you can still get a loan.

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Quote from: Jawhead999 on May 27, 2024, 09:54:04 AM

If you think taking a loan from banks is hard since the borrower need to agree with so many strict terms, but I'm 100% believe looking for investors that want to invest in your start-up is way way way more harder than taking a loan from banks.

Let's say you're an investor, there will be a lot people reach you and ask you to fund them, but how you can be so sure if those people who run the start up aren't scammers? how you can be sure you will earn profit like their promise? you might not want to invest in someone project because you think it's better to invest in Bitcoin or your own business.

A lot of people hesitate to invest in BTC thinking it won't grow up huge anymore. This is the advantage of investing in a start-up project, although the catch is the risk is also a bit higher.

We can only do some practice to enhance our chance like ask for a whitepaper or roadmap of their project, for us to know that there is truly a project that they are working on and they must prove that the documents was theirs because it's also easy to grab someone else work online. As for loaning money, we must realized that there are plenty of platforms or companies who are now offering it. We can always opt for them if we are having a hard time applying inside the banks.

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Quote from: Marvelockg on May 27, 2024, 05:11:37 AM

If you have a well thought out business idea but don't have the needed capital to keep it functional, is getting a loan the best option or looking for interested investors?

Would trying to start up the business in your own little way the best option

It depends on how huge your business idea is but you know what's the best thing to do? it's always to test the waters. Start small and that's it. You don't have to go with seeking funding on an instant just because you have a great idea. Ideas are there but the application of it and doing all the task and growing it is another thing. Start small with the least that you can put on that business. And if you're fortunate to grow it, you already have the results and investors will have no doubt investing to you because you have what it takes for you to grow their money as well through your business funding.

Quote from: Marvelockg on May 27, 2024, 05:11:37 AM

can you consider bringing a third party into the business who will just serve as a partner that contributes just money?

This is only going to work if your business is already big and you already made a system that keeps you generating money and you can easily manage people. But as a start up, I wouldn't bring someone who's just there to contribute money. I want someone to contribute even with little money but mostly to the business itself and has got something to offer for the growth of it. IMO, it's not just always about the money but if you can handle to have onboarded with these kinds of people on your start up, you go ahead. Or might just find an angel investors that will also involve themselves to the business.

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Quote

One of the major problem an average person that has an incredible business idea faces is the ability to raise the initial capital that's required to bring his ideas to life. and in solving this challenge, the available option has always ranged from iether taking a loan from a financial institution or seeking for investors that will take a particular percentage of the company and will in return provide the necessary financial support.

1.Usually 99% of the people, who think that they have "an incredible business idea" are fooling themselves and their "incredible business idea" kinda sucks.
2.Usually a big percentage of the people, who actually start a business around their "incredible idea" end up failing.
Getting a loan means that you take all the risk for you business, while getting an investor to buy shares of your company means that the investor will also take a part of the risk. The second option is better, but I don't see any small businesses outside the Silicon Valley getting funding from investors. Investing in startups is an extremely risky business, since most startups fail in the first 3 to 5 years of their existence.

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