not wait for Monday morning to walk through the doors of the bank. After filling an application that lasted for hours, I was told the bank will review my application and get bank to me. The bank never got back to me, eventually after series of wait, I was declined with the manager quoting economic recession as a reason.
Young entrepreneurs who’ve stumbled in their search for start-up capital make up a long list in the business world. Many applications are denied. The 1% who are successful in their application are faced with high interest rate and most time come back to bite the business owner in the form of onerous debt, insufficient revenue share or worse.
Part of the problem lies in the nature of the start-up endeavour. Freshly minted entrepreneurs are typically major risks for lenders because they lack business experience, collateral to secure the loan or both. Neither family, friends, banks, venture capital firms nor angel investors are interested in losing their investment. You can't blame them for not wanting to take a risk on a venture without a reasonable probability of return.
On the other hand, many financing efforts fail because of avoidable mistakes that are made in pitching potential lenders, structuring the agreement or managing the money once the deal is done.
Looking back, I feel is best I share my principle which is ‘’ whatever you don’t have, you don’t need ‘’ and ‘’ start the way you are’’. When I started FIZZLE ENGINEERING SERVICES, I was not looking for office I can’t pay for or trying to venture into expenses I can’t afford. After my business name was registered with CAC I got myself an Identification card, company logo, and that was it. I quickly identified my market and that’s it. Trust me, it’s difficult. Do not expect a path filled with roses or closing a deal immediately. So all you need to begin is an idea, develop on it and begin with what you have. Sometimes before you launch out you might pick up a job to save up what you need to start.