Starting a small business in itself is a huge and difficult task, it becomes more difficult in a tough and slow economy, especially in a recession. When an economy is experiencing recession it simply mean without mincing words that such economy is broke. This cause a ripple effect on everybody in the economy. We all know what pose a threat to most small business startups is finance.

Sequel to this I encourage anybody with the intention to start a small business to have a good business plan, you must know what you need to get started and how you want to go about starting the business. I won’t be mincing words to say that entrepreneurs will have to work very hard to find their startup finance, you must know how much you need to start, know your cash projections, know the volume of sales you must make to break-even, how much personal money to invest, know when to allow the business carter for itself, know the price that will make you break-even and if it is competitive, evaluate to know your sales projections are feasible and realistic, how much will be your operating costs, above all what you need to do to make a profit.

Starting up a small business can be so difficult and stressful, reason why most people do not want to create one, but rather look for those who have created one and seek an employment. The truth is that it is almost impossible to create wealth living on salaries alone. I think I need to emphasize that every human should be an entrepreneur in the 21st century, regardless of who you are or what your profession is. If it lacks economic content, it just won’t go far. A doctor must see himself as an entrepreneur – it is that simple, a doctor cannot efficiently manage an hospital, but a doctor that is an entrepreneur.

If you have the intention or idea to start up a small business, especially when you are in a rough economy or a recession like Nigeria my beloved country is going through now, then consider the tips below, it sure will help:

Seek Advice

I tell people with the intention to start a small business or whichever business that capital or finance is not the first thing to worry about. It saddens my heart to discuss with young minds about business and the first thing they ask is where will I get capital? This is what I tell young aspiring entrepreneurs like myself: Get an idea first, a marketable and economic idea. This is the first task for starting a small business, and where many startups fail. Before worrying about capital or finance, have an idea and a business plan, then seek advice from professionals ahead. You can ask:

A friend or relative that owns his or her own business
An accountant or business analyst
Your mentor or someone who have done what you want to do before or something close.
The reason this is imperative is that they must help you review your plans to see if there are no unrealistic targets or vague ideas. You must be sure you are not missing out something crucial and might hinder the growth of the business if not planned for.

Source Capital

This is the biggest part for most entrepreneurs starting a small business, their usual complaints is where do I get the capital from? To me I think it is not something to bother about, it is the easiest thing to do. What is most important to me is to have a well reviewed and approve business plan. I was shocked in my final year in school studying business when Professor S.S. Maimako now the VC of the University of Jos, took us a course called “Principle of Finance”, one thing I cannot forget about the course, as much as I do not have strong interest in finance is this: “He said all business must borrow”, borrowing sometimes is more profitable than financing with earned income. He taught us that most reputable organizations borrow not because they do not have but borrowing seem the best options – I enjoyed that course.

Please take a loan, micro finance banks still gives loans to good business ideas. I am one person who do like taking loans – I detest it so much, but professionally, I have realized that it cannot be done without. Entrepreneurs must have personal savings, meet family and friends for loans. Bootstrapping is another part of finance that is key.
NB: To continue this mind blowing tips, click the link http://dapsdiary.com/small-business-recession/