Figures indicate that only 5 % of start- ups in India succeed whereas 90 % fall flat within the first 5 years. For all the budding entrepreneurs this is indeed a worrying sign. Yes the 5 % of the people who succeeded you can increase it to 90 % if you incorporate a few essential points. Business bank loan interest rates are an important point of consideration when you choose a business loan. One of the main reasons why start- ups fail is lack of financial discipline. Below are a few habits that you can incorporate
Be aware of your business
Starting off, understand your business properly. Do not dream about a business and make sure that you conduct proper research on the type of business who are planning to open. Clear understand the strength of your business and how it will be identified before you are going to start the same. To get a good understanding about your business is the first step.
Know the market
Then you need to understand the market where you are planning to start your business. Being aware of the business is not going to help if you are not aware of the market where it operates. An example is that you are aware about the ins and outs of a cloth business and start off with one. The market preference is the area where you lack knowledge as this is going to lead to disappointment. You can opt for how to get a loan for franchise business in India and be able to obtain one. But if you do not pay the amount then the bank will not lend you money again. Hence it is better to understand your business and the market before you are applying for a business loan.
Understand the difference between your personal and professional need
It is an important point to consider, for people who are looking to start a small business or something at a small place. You may not have any degree of control between your personal and professional needs. At the end the banks are aware that you would have to repay the money. But if you are spending the amount for your personal needs it is not going to provide you with any profit and is a sort of expenditure. If you are spending for the needs of your business it is going to give you some profit and you will be able to repay the amount easily. Repaying loans in the correct manner is the right one to get for the future.
Take note of the risk factor
It is better to take an optimistic approach in some cases. A normal approach would be to witness all the positive traits of a business and then you will apply for a loan. What about the case if a natural calamity strikes and your business suffers a loss. There are numerous risk factors that may prevent you from succeeding.