Starting A Business: Debt or Self Funded?

Guests: Tom Ryan Founder of Starter 100 and Miguel Thompson Business Development Manager of NCB’s SME Unit. Welcome to Your Business Matters, a podcast of EXIM Bank Jamaica where we bring thought leaders together on thought-provoking ideas and methods to help grow your business. There are many factors to consider when starting a business. What product/service to offer? Will I host the business online or open a traditional brick-and-mortar establishment? And so on and so forth. But before you settle on any of these, you need capital, yes hard currency. In this week's episode of Your Business Matters, we tackle the issue of start-up funding. Is it wise to borrow from a bank to start my business or can I afford to shoulder these expenses out of pocket? Or better still explore non-traditional ways of sourcing funding? Perhaps you've heard of the term 'good' debt, low-interest debt that over time, helps to increase your income. However the risk-averse may argue that making use of a loan when the return on investments is uncertain is too much of a risk to take. While it can be argued that the use of personal savings would be easier, the option is not feasible for many entrepreneurs, and attracting investors especially for start-up companies is a task and a half. So what then is the verdict? Do I fund my business out of pocket or from other non-traditional ways or should I seek funding from a bank? Find out more on this evening's episode of Your Business Matters... Some of what we discussed includes: From where you sit, what has been your experience with entrepreneurs who have had start-ups but were not able to garner the funding they desired? Other than interest, what benefits do banks derive from issuing small business loans? Why should start-ups look into non-traditional ways as opposed to accessing a loan from a bank? Why should entrepreneurs seek to start up loans from the bank? Is the difficulty in accessing a business loan tied to the fact that 80% of start-ups fail? We also touched base with a member of our audience, Codian who posed this question to our guests “What are the requirements for a small business owner to get a loan?” Connect with our guests: Connect with Tom Ryan on LinkedIn and at Captivated Health.  Miguel Thompson can be found at jncm.com or contact customer service for more information and Miguel can be found at Start100.com Thank you for joining us on Your Business Matters hosted by Heneka Watkis-Porter of the Entrepreneurial You podcast. Remember to join us next week for another exciting episode with our thought-provoking leaders as they debate thought-provoking ideas and methods to help grow your business and move closer to your goals. To stay in touch, you can connect with us on your favorite podcast platforms at ‘Your Business Matters’ where we bring the matters to the table, or visit eximbankja.com for further information and business resources. As you continue to mind your business, I leave with you this quote from Seth Golding ``There is no shortage of great ideas, just the will to execute them, and where there is a will there's a way."  Take care.