Well this dates back couple of years when I wanted a business loan to start my company. I had a plan in place which was a super stockist of a European brand ice-cream. The requirement was a cold store place, initial capital and an operational plan. I had more or less everything in place right from place, to vans to a complete approach on how to scale things. This was a financial strain on me but I was pretty confident on pulling it off. I however needed approximately 15 lakhs as working capital to push things further. When I approached banks for this loan, I was shot down as it was an idea on paper and some capex in place. There was not operating profits or even revenues for a matter of fact. One of the options to get the 15 lakh loan was to mortgage a my property but this cycle would have taken a good 4-5 weeks. That’s when an idea stuck of taking small business loans but then again since I was not employed no bank was willing to give me a loan. Fortunately, my wife was working in an established MNC with some good salary. This helped in getting a 15 lakh loan at a great interest rate and my operations started rolling. I got the first set of materials from Europe, I had people sign up with multiple of the retailers to sell this ice-cream and the logistics was all well managed by a backend platform and a tracking solution.
Business started to soar and growth rates were approximately 150% month on month. This was a little difficult to digest and was not exactly how I saw things shape. However, this was a good problem to have and the thing I needed to address on an immediate basis was arranging for financials. I quickly mortgaged my property and got a loan of 75 lakhs against a 1.5 Cr property which addressed most of my concerns.
Today business is at a new high and fortunately I can get a business loan with great ease
A few key points that I learnt were:
1. Do not hold back on your dreams, go aggressive
2. Finances are a small challenge and can be addressed in multiple ways especially via loans
3. Get you operations act right, this could make or break your business
4. Have the right marketing partner in place to help you with the flow
I have seen many start-ups who are little cautious due to financial constraints but can maximise on the opportunity in case the dare to take the plunge with complete faith. Hope this article helps those who plan to get into their own startup idea in the near future.