By Matata Mercy
One of the biggest problems that African countries are grappling with is what is commonly called unemployment and for the case of Uganda, it has made very many youths to give up on the good life of ending up in apartments and driving expensive, luxurious cars.
Many of the youths in Uganda have turned to drugs and betting as their saviour from extreme poverty as a result of the joblessness that has gripped them into it's hands.
Very many government projects have come into place like the youth livelihood program but because of the political dynamics that are involved in these schemes and also the corruption that has eaten up all the government programs has destroyed these initiatives and left many youths across the country hopeless.
Every year very many youths come out of Universities and other tertiary institutions of higher learning armed with nothing but only their academic qualifications that they have been able to get after the four years or three years that they spent there.
One alternative that the youths can use to escape the burning unemployment is to take their issues into their own hands abnd start their own businesses but their is one thing that most youths will tell you stoping them from starting, that is the lack of capital kickstart their ideas.
Today i would like to give youths out there some tips on how they can be able to raise capital through the acquisition of loans to kick-start the ventures that they would like to start.
Here are some tips on how you can successfully start a business with a loan and thrive at it.
1. Carry out research on the business that you are planning to start
If you are going to succeed at the business that you want to start, it is very essential that you do some good background check on the business that you are planning to venture into.
For example if you are planning to start-up a restuarant business, you will need to find out the rent costs for the place where you are going to start that the restaurant, carry out a survey and see if there is truly a need for a restaurant in that place or even find how many restuarants are in that place and the cost of running the restaurant especially the utilities like water, electricity, buying the foods and all that.
When you add all that up, you will most likely know how much it will cost to run that restaurant.
Then you will also need to find out the profits that you will be able to make in a certain period of time that you can use to service the loan.
2. Borrow an amount that you can easily be able to pay up.
It is true that very many youths out there want to start a business but one thing that they want is that they want to start big in a short period of time. In addition, they want to get big profits in a short period of time.
Sometimes, you just need to put your big dreams aside and start working in the smallest way that you can if you are going to progress.
If you are going to start a business using a loan, you need to borrow as little as possible, something that you can easily pay without losing sweat or sleep.
You don't want to start running around after failing to pay over a million shillings that you borrowed to start a restaurant that went to the dogs barely after a week.
3. Start the business in the smallest way you can
When you are just starting up a new business for the first time, you cannot risk alot into it without knowing the dynamics that are involved in running this kind of business.
You will be able to invest more after you have discovered the amount of profits that you have been able to make and also you have known the costs of running the business properly.
So if you are planning to start small, you will not lose hope when the business fails simply because it will be a small loss and in addition a learning experience that you can carry foward to help you in your next venture.
When you start small, you little capital in form of money meaning you will borrow a small amount of money that you can easily be able to pay without losing sleep or even sweat.
4. Make sure that you pay up the loan
One bad habit that most people have is the fact that they do not want to pay after they have borrowed some money despite the fact they actually do have resources to pay up that money that they have borrowed.
If you want to be in good terms with the bank or the person who gave you a loan, you should make sure that you do pay up that money or loan.
You could pay it up in small installments until you are able to clear it up completely.
The most important thing is that you have been able to pay up that loan otherwise next time, you might not be lucky enough to get another loan from the person or bank that borrowed that money to you or worse still, for the case of banks, your land tittle or any other thing you put up for security will go away. Would you take up a loan to start your own business venture?
One of the biggest problems that African countries are grappling with is what is commonly called unemployment and for the case of Uganda, it has made very many youths to give up on the good life of ending up in apartments and driving expensive, luxurious cars.
Many of the youths in Uganda have turned to drugs and betting as their saviour from extreme poverty as a result of the joblessness that has gripped them into it's hands.
Very many government projects have come into place like the youth livelihood program but because of the political dynamics that are involved in these schemes and also the corruption that has eaten up all the government programs has destroyed these initiatives and left many youths across the country hopeless.
Every year very many youths come out of Universities and other tertiary institutions of higher learning armed with nothing but only their academic qualifications that they have been able to get after the four years or three years that they spent there.
One alternative that the youths can use to escape the burning unemployment is to take their issues into their own hands abnd start their own businesses but their is one thing that most youths will tell you stoping them from starting, that is the lack of capital kickstart their ideas.
Today i would like to give youths out there some tips on how they can be able to raise capital through the acquisition of loans to kick-start the ventures that they would like to start.
Here are some tips on how you can successfully start a business with a loan and thrive at it.
1. Carry out research on the business that you are planning to start
If you are going to succeed at the business that you want to start, it is very essential that you do some good background check on the business that you are planning to venture into.
For example if you are planning to start-up a restuarant business, you will need to find out the rent costs for the place where you are going to start that the restaurant, carry out a survey and see if there is truly a need for a restaurant in that place or even find how many restuarants are in that place and the cost of running the restaurant especially the utilities like water, electricity, buying the foods and all that.
When you add all that up, you will most likely know how much it will cost to run that restaurant.
Then you will also need to find out the profits that you will be able to make in a certain period of time that you can use to service the loan.
2. Borrow an amount that you can easily be able to pay up.
It is true that very many youths out there want to start a business but one thing that they want is that they want to start big in a short period of time. In addition, they want to get big profits in a short period of time.
Sometimes, you just need to put your big dreams aside and start working in the smallest way that you can if you are going to progress.
If you are going to start a business using a loan, you need to borrow as little as possible, something that you can easily pay without losing sweat or sleep.
You don't want to start running around after failing to pay over a million shillings that you borrowed to start a restaurant that went to the dogs barely after a week.
3. Start the business in the smallest way you can
When you are just starting up a new business for the first time, you cannot risk alot into it without knowing the dynamics that are involved in running this kind of business.
You will be able to invest more after you have discovered the amount of profits that you have been able to make and also you have known the costs of running the business properly.
So if you are planning to start small, you will not lose hope when the business fails simply because it will be a small loss and in addition a learning experience that you can carry foward to help you in your next venture.
When you start small, you little capital in form of money meaning you will borrow a small amount of money that you can easily be able to pay without losing sleep or even sweat.
4. Make sure that you pay up the loan
One bad habit that most people have is the fact that they do not want to pay after they have borrowed some money despite the fact they actually do have resources to pay up that money that they have borrowed.
If you want to be in good terms with the bank or the person who gave you a loan, you should make sure that you do pay up that money or loan.
You could pay it up in small installments until you are able to clear it up completely.
The most important thing is that you have been able to pay up that loan otherwise next time, you might not be lucky enough to get another loan from the person or bank that borrowed that money to you or worse still, for the case of banks, your land tittle or any other thing you put up for security will go away. Would you take up a loan to start your own business venture?
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