Capital is one of the most important things to consider before starting a business, as you may not have a lot of money to ruin , especially for those who have little capital for a startup.

Therefore, having a clear business plan is very important because it is a guide to guide your business. Doing business without a clear plan or ineffective plan will lead the business to face unrealistic costs and inefficient costs will lead to capital losses accordingly. And this is why most business owners are facing a lack of capital.

An accurate business plan should include a clear description of the business, current staffing and management, as well as future forecasts using SWOT, competitor analysis, marketing plan analysis and, finally, the capitalization of the business. These include budgets to be spent and cash flow forecasts.

So think carefully before starting your business so as not to have regrets and spend capital without getting anything in return.

Short-term loan

What if your business is now running without a business plan and you are experiencing a capital crisis? You certainly do not want it to collapse, do you? You can try to raise more new capital to put together and you can also try to think about getting a loan for a short time.

Usually in business, there is a reserve of 3 to 6 months to pay the bills, but there may be problems in calculating the amount of money to be spent, so you should calculate the amount. What your business needs, write it down and start rewriting your business plan. So you will have documents to help you apply for a loan, which means you will have accurate information about the exact amount needed.

Short-term loans are usually used for business owners who lack cash back, they are unable to collect the money owed on time, leading to insufficient funds for their business.

Short-term loans can be found through:

1. Friends or relatives

2. Microfinance

3. Bank

Make a clear decision before applying for a loan from a microfinance institution or bank, you should find out the details of the terms of the microfinance or bank clearly and compare to find one that has a lower interest rate.