If over 50% of new businesses fail in the 1st 2 years and 1 of the top 5 reasons for failure is lack of funding. It seems that financial institutions are cutting people off at the knees by not lending enough capital. Does that automatically mean that new businesses would be successful if they had more access to funding? No. But it seems to mean to me that there would be a lot more successes. What am I missing?
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I would think the banks have to keep things reasonable so that they themselves donât go out of business.
Also, I have heard of some NGOs that help people who may have, letâs say a disability, start a small business, and help them get it going with advice. There might also be some government funding for some of these, at least here in Canada.
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An opportunity to be rich and to help out the little people. What are you waiting for? Thereâs a 50% chance of success.
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If some people can succeed with the same level of funding, why wouldnât it mean that some people are just bad at managing the capital they were given?
That the average american is nowhere near smart enough to be successful as a business owner, thatâs why most of us have jobs instead of providing jobs.
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Iâm not taking the bait.
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Do you know what the process is for applying for a business loan? Iâm not entirely sure of the process, but Iâm pretty sure one would have to draft a business proposal and present it to the lender to convince them the venture is worth investing in.
I donât think itâs necessarily the institutions problem that the borrower asked for too little if itâs the borrowers job to know how much theyâll need to fund their operations successfullyâŠ
So, I do not think that these institutions are cutting anyone off at the knees - Iâd say itâs more likely the borrower did a poor job calculating their expenses or how much capital they need to get off the groundâŠ
Maybe you can clarify the process for applying for a business loan - Iâm assuming youâre only focusing on borrowing from financial institutions and not any type of private funding?
Why do you think thereâd be a lot more successes? In what sector? In what industry? Iâd imagine the success ratio isnât the same across industries and sectors wrt new businesses/startups. What specific segments do you think would see more successes? Why? What are you basing this assumption on? I donât think any meaningful discussion (haha) can be had with just a blanket statement like this without giving respect to the various economic sectors in the countryâŠYou do realize the US economy is not a monolith, correct?
A basic understanding of entrepreneurship, how a business is create, how varied a new business can be, what market they decide to operate in, from whom theyâre asking to borrow money, how prepared they are, the varied lengths of business cyclesâŠ
I mean the list of things youâre missing might be endless, tbhâŠ
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The fact is time isnât linear. Much of the percentage that fail are the ones which have
already grown to be Evil Corporations if one can view the present from a 5th dimensional perspective. The presence of Bernie Sanders breaks this cycle by having a karmic influence upon the universe. These businesses fail, Evil ceases to exist. The People triumph. Which is also why one must seek counsel from people who have failed if one wants to know how to succeed, for they would have truly succeeded but for karmic intervention, while the successful were always meant to be mediocre.
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I do! Ooh pick me!
If starting a new business: The bank wants to see that you have AT LEAST as much capital/skin in the game as they would. They want you to have a solid business plan and expertise in the industry youâre entering. And if this is your first venture they wonât lend unless you have a partner who has run successful businesses before. It helps if that partner is a subject matter expert/successful in that industry. They do this because most entrepreneursâ first few businesses are colossal dumpster fires. They prefer you fail and âpay your duesâ on your own dime.
If youâre looking for a loan to expand your existing business the bank wants 5 years of tax returns showing sales and margin growth. If your business has inventory or assets collateralized loans may be the way to go.
If youâre serious about this @Zeppelin795 itâs always best to start a business that can bootstrap itself with cashflow. This is often very difficult, but way safer. Iâd like to recommend a book by a small business consultant who has saved thousands of failing small businesses: âProfits arenât everything, theyâre the only thing.â
Businesses that list âlack of fundingâ often really die due to lack of sales. They list âlack of fundingâ on the surveys to save some face. But think about it, if youâre running a cash flowing business how can âlack of fundingâ force you to close your doors? The only thing lack of outside capital would cause is slower than desired growth.
Also the 50% of businesses failing thing falls into a better light when you realize that entrepreneurs are often stubborn bastards who found 5-10 companies. The successful ones are those that refuse to accept failure.
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This is more or less what Iâve heard/expected to hear⊠Thanks bud
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What are you guys blabbing about?
Everyone knows that funding is acquired by giving a 10 minute verbal pitch and whether you get it or not is dependent on how much determination and passion you display. Your intent determines success.
Before embarrassing yourselves any further, at least watch an episode of Shark Tank.
Sheep.
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A brain. /thread
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How does a new business even start when an industry has a monopoly over said industry 
Must be The Evil Banking Cabal holding businesses back. If they would just share more of their capital, like they did with sub-prime mortgages, everything would just be better 
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Not a strong enough answer.
How dare the banks not spend even more money on more failed businesses for more stupid Americans. Stay woke brah
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But isnât that socialist?
Not entirely sure of your point. Underfunding is consistently in the top 5 reasons new businesses fail. Itâs almost like financial institutions are ensuring a failure.
Do you expect him to engage in any type of reasonable discourse though which misconceptions are corrected and understandings improve?
This retort:
is right on par with what we expect from this clown. People try to answer him honestly and straightforwardly and he responds with this garbageâŠitâs never a wonder why he canât be taken seriouslyâŠ
But then here we are, about to engage in months worth of circular logic, ad hominems and strawmen
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Definitely not. But society generally frowns up mocking idiots publicly. So people like Zep and Raj are my outlet.
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Maybe so. But in light of the stats it says otherwise.
Jobs cannot be provided unless enough product or service is sold.