For many young entrepreneurs, the dream job is to have their own business. Shortage of funds and lack of experience are the two roadblocks that stop you from making your dream a reality.
To be successful, it is important to learn from those who have already attained their goals. Having an adviser is a blessing to a businessperson.
If you haven’t found your business adviser to help you in starting a new business, here are some business tips for young entrepreneurs.
The great motivation is to keep challenging yourself. It can be tempting to live your life staying in your comfort zone. Treat your life as a long university, so that you can learn more and more every day and achieve your goals by challenging yourself.
If you find yourself expecting to see a change in your life, set an ambition for your own.
Once you have set your aim, put them on your to-do list and organize it into functional steps.
There is no doubt that starting a business takes a lot of time. The only thing to be self-satisfied is to do work that you honestly believe in and are passionate about your goal.
Taking risks in business is usual but knowing the factors that impact decision making is important. Risks are an essential part of being an entrepreneur. You might have risk in some of your personal money when running a new business.
Initially, you do not know the end result of your efforts unless you do it.
If you failed once, try to do it again because when you achieve success, you will not regret trying again.
Knowing your audience is very important. There are some factors that help you to understand your audience better are: -
One of the biggest faults that entrepreneurs make is not having faith in themselves. Given below are some factors to have believe in yourself and look confident:
It is important to know the value and experience that anybody can provide for startup, from your co-worker to your peers.
Get an advantage of all scope of networking that is accessible to you including industry talks, networking events, internships, etc.
Being in touch with colleagues at a casual level may lead to a professional working relationship.
It is important to keep yourself encircled in every aspect of the business. Although, if you want to enlarge your business focus on that. Mentorship is also crucial. Even though you are the CEO, you can continue to seek an opportunity to learn.
Without a team, it is impossible to succeed in a business and those who try to achieve heights in a business alone will sometimes lose. Therefore, build your own team to boost your success.
Social media helps you to promote your business, but you should know how to use it productively. It is an amazing tool for promotion, but one must need to know about its advantages and disadvantages.
A business domain is the name of the website that can be found at the URL. It is the easiest way for the individual to locate your website and analyze your brand with its domain name.
Whether you want to start a new business or expand the existing business, you always require a constant cash flow.
Capital is a significant requirement for any type of business that ranges from small to large, every business faces a shortage of funds at certain a level for the development of a business.
In some cases, the individual turns their savings into investments. Moreover, many enterprises are left with an alternative option of a business loan.
In recent years, the government of India inaugurated many steps to ease the process of loan such as minimum documentation, collateral-free loans, online application, etc.
Business loan in India is provided by various banks, financial institutions, or Non-Banking Financial Institutions (NBFCs) to fulfill the need of daily business requirements.
The government of India also provides many credit schemes under business loans for the MSME sector. Some of them are -
However, Business loans are classified into two categories i.e., secured loan and unsecured loan.
A secured business loan is a type of debt where the individual pledge their immovable property to avail required funds.
The loan amount provided to the individual is based on the value of collateral or security.
The individual can get a lower interest rate with a flexible repayment schedule as the individual has given their property as collateral or security and the bank can have the benefit of lower risk.
There are many banks and financial institutions that will sanction the ownership deed of collateral until the borrowed amount is paid back.
There are various types of secured business loan given below: -
|Bank name||Loan against property||Business loan|
|State Bank of India||8.45%||11.10%|
|IDFC First Bank||7.50%||18.00%|
|Yes Bank Ltd.||8.00%||18.00%|
|Tata Capital Financial Services Limited||10.00%||19.00%|
|The lender will give a high limit for borrowing that allows to acquire a large amount of loan.||The longer repayment may result in paying higher interest over the loan schedule.|
|A secured loan can be provided for longer repayment tenure.||Floating rates can lead to paying higher EMIs.|
|The individual should pay a low interest rate on the borrowed amount.||Chances of losing security might occur if the individual failed to pay back the amount.|
An unsecured loan does not let individuals to pledge any collateral or security to avail the amount. Such loans are provided on the basis of income and creditworthiness.
Such type of loan is provided on the basis of creditworthiness and income. An applicant with higher creditworthiness gets quick access to funds.
The profile of an unsecured loan is considered to be riskier because the interest rate is higher than that of secured loans.
On the basis of the financial condition of the borrower, the bank assess the repayment potential by evaluating his or her creditworthiness.
|Less risky for the applicants.||There is less possibility to avail a loan if the credit score of the applicant is low.|
|The process of such loan is faster than a secure loan.||The rate of interest is higher than the secure loan.|
|The loan is sanctioned on credit history and income.||Unsecured loans come with shorter repayment periods which increase the possibility of defaults on payments.|
|Particulars||Secured loan||Unsecured loan|
|Default on loan||In case of a default, the applicant can lose their assets.||In such loans, no collateral is required. Therefore, the applicant does not have a risk of losing assets in case of default.|
|Rate of interest||The interest rate for these loans is lower as compared to unsecured loans.||Because of the high risk, the interest rates are higher.|
|Collateral||Such loans require the borrower to pledge an asset as collateral.||Borrowers do not require to pledge collateral to avail a loan.|
|Loan tenure||The repayment period for a secure loan is longer.||The repayment tenure for such loan is less as compared to a secured loan.|
|Risk||The risk for such loans is lower than unsecured loans.||The risk is higher in case of default as it does not keep collateral.|
|Examples||Car loans, loan against property, home loans, etc...||Personal loans, education loans, etc...|
Financeseva allows you to choose and compare the best deal provided by the top banks and financial institutions for business loans.
Step by step to apply online: -
Step 1: - Visit the official website of the preferred lender and check your eligibility.
Step 2: - With the help of using the EMI calculator, you can calculate your monthly EMI.
Step 3: - After that, fill in an application form.
Step 4: - Enter all the required information and select the needed loan amount and repayment tenure.
Step 5: - After filling in the application form, click on the ‘submit’ button.
Step 6: - After analyzing your application form, the bank representative will contact you for further formalities.
Financeseva will help you -
Also read: - Difference Between Secured Loan vs Unsecured Loans