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Thread: Reasons not to use a personal loan for my business?

  1. #11
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    Quote Originally Posted by PatrickM View Post
    If the business is a good business then it will grow and finance itself.
    I just want to add to this. I don't like when we make things sound too easy as if a good idea is all it takes.

    If it is a good business (Meaning that it is viable, has potential to be profitable and you have identified a target market), AND you are an effective business manager, AND marketer and salesman ( to bring in paying customers) then you have a good chance of organic growth. That's not to say that you won't need any money for anything...you will. Some things cannot be done cheap, for free, or half baked "until you can do better".

    You need to understand the best places to spend your limited resources and the places where you cannot cheap out.

  2. #12
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    To add to what Harold said, if you're business is capital intensive, taking a loan may be the only way to bring in new machinery and technology. A general rule of thumb is that when your business is growing quickly, cash flow can be hindered as your variable costs will tend to lead income by 30-180 days depending on how you're structured and how your customers pay.
    Brad Miedema
    Fulcrum Saw & Tool

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