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David
People start businesses by taking loan money from banks, friends or SBA (Small business administration). It’s a usual case, but I got to tell you something, it isn’t the right thing to do at all. In fact if you start your business by loan money, you put yourself and your family in jeopardy. One of the basic things to understand when starting up a business is that you have to HAVE ENOUGH CASH IN YOUR ACCOUNT TO START A BUSINESS, no matter huge or miniature, as money is the first thing that is required to start a business.
What happens when you take loans from banks or lenders and unable to pay them back on time, the lender is likely to call in the loan or refuse to renew it for another year, Often new small business owners then have to take out home equity loans or use their credit cards to pay off their loans which puts their home and credit rating at risk. So you should make sure that you have enough cash in hand (of course it should not be from a loan) then put your feet in the business world.

When you step into a new business, you have to take care of all the business loans, taxes and the money owed to suppliers and landlords. Here, it is the capital that plays the part in keeping you away from all the difficulties. What you have to understand is that a newly established business needs time to get you revenue, sometimes it takes moths, sometimes years.

Being patient till you save enough capital is the key for safely starting up a business which would be a definitely a successful one.
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