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Best way to start up a business?
In term of finance which would be the recommended method of starting up in terms of money? Pros & cons?
Take it slow and use personal saving to set up small and just reinvest any profits in growth OR Take out some sort of business loan/find potential investors to set up a larger company straight away?
A simple rule for any entrepreneur: If you're business makes money in the first 3-5 years, then you haven't been broad enough in setting your base and you'll likely saturate your profits after a few years with no more growth potential.
When you start a business, given the above rule, make sure you have enough savings for at least 3 years, let me repeat because I can't repeat this enough, at least 3!
Once your Business starts making some revenue, then I would just push all that straight back into the business. Don't expect to become rich quick. If it was that easy, then everyone would do it.
If you get big enough, and you're making a solid profit that is greater than $100,000, and with to expand further, then you can go to a bank to get a corporate loan or to a VC and sell some part of the company to get more capital.
Good luck to you and I wish you all the success possible.
Source(s):11 months ago
Start small and grow.by Jo W - 11 months ago
Small and grow, unless your idea is VERY unique and revolutionary and/or would require tons of upfront capital (usually to do with machines or technology)
Think SUCCESS, think like a successful entrepreneur and you will get there. See opportunities in everything.