Don’t quit your job when starting a business, banker advises
Persons desirous of becoming business owners have been told that they should not abandon their jobs while starting a business.
That advice came from Banco Popular representative, Darren Vanterpool.
Delivering an address at the ‘Lunch and Learn on Loans, organized by Money Matters BVI, Financial Education Network’ forum on Tuesday, Vanterpool said: “The first recommendation that we would make to anyone in here is to please don’t quit their day job.”
“We have persons who would drop everything and say this is what I am going to do, this is where I am going, forget about the day job. When you approach the bank, we want to know that you have a fallback position … Nowadays, banks fallback position for small business startups is generally your primary mode of employment.”
Keep proper accounting records
Vanterpool also advised attendees that they should also keep proper accounting records.
“Get your business off the ground, ensure that it is running profitably, keep your books — this is the most crucial part of it. They sell, sell, sell, and produce, produce, produce and have nothing to account for it,” the banker stated.
“The next thing I would suggest is if you have the need to have credit for your business initially, at least separate yourself from your business in that if you have two credit cards; have one specifically for the business. Don’t use it on anything else unless it is business-related,” he added.
Vanterpool said that in so doing, it would show the bank the true picture of one’s revenue and expenses for a loan.
“Otherwise we cannot make that determination,” he advised.
Roughly 125 persons including business students from St Georges Secondary School and the H Lavity Stoutt Community College were part of the function.
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If he was a businessman and not an employee, I would listen.
owns multiple properties , session musician
Correction…
Owns none… Manages many!
so he don’t care about his people enough to give advice? The man is just talking good sense from what he sees at his own day job. I so tired of these stupid comments…..
Would you listen to a poor man advising you how to get rich.Sometimes in life you have to make a bold move or you never move.
The man talking sence, not because he is an employee means he is any less, maybe he is not interested in sarting his own business, some ayo so darn negative.
He is the negative one
A good endeavour. I wish I had known about it.
People already do that here… so many Government employees run their own businesses too…. on Government time !
Entering into business is inherently risky; consequently, one must do one’s homework, research before diving into any business. One has to take risks but sensible risks. The BVI is a small territory with a small economy so there is a limit to the number of profitable businesses it cannot support. Further, a business must deliver greater value to customers or deliver comparable value at lower cost. And a business offering similar services to other businesses must differentiate itself, ie, cost, price, customer service, post sale support………etc.
Moreover, in larger locales with much larger customer base, businesses are able to segment the market and focus services on that segment, ie, geographical areas…….etc. On the other hand, in small locales, businesses go after the same customer. Invariably, when a new business opens, customers flock to it but in time for the most part they return to businesses that they patronize before. It takes work to attract and retain customers Regarsless, customers must receive value for money.
“ Entering into business is inherently risky; consequently, one must do one’s homework, research before diving into any business. One has to take risks but sensible risks.” Deep real talk. A lot of people think all have to do is get a space, purchase and put some stuff in and voila that all is needed. Nuff businesses in the BVI failed because everyone in business do not understand business. Indeed business takes work
Indeed, starting a business is inherently risky and more so in a small islands, small locales, ie, the VI……etc. The risk is on entrepreneurs who risk their capital to start and sustain a business; businesses need working capital to get started and the working capital may come from savings, partnerships, bank loans…….etc. Many businesses fail out of the gate and those that survive may not be profitable right away. On average, it typically takes 3-5 years to turn a minimal profit. So Mr. Vanterpool suggestion of not quitting one’s regular job right away is sound and free advice.
Before starting a business, one should do a feasibility study to see if there are unfilled demand for the service. If the market is saturated with the same service, making profitable inroads into the market may be challenging. Businesses that cannot be easily duplicated have a greater chance of success. One mistake that business/business owner(s) makes is trying to live large on initial profit. To improve service delivery and sustain the business, the profit should be plow back into the business. Effective customer service is the sine qua non (essential) of making a business successful.
It is a fad and fairy tale that customers are always right. No. True, customer service is the lifeblood, oxygen of a business but they are not always right. If some customers are being a nuisance or disrupting business operations or making other customers uncomfortable, in the best interest of the business and other customers, it may be best to part ways with them. Customers should be treated fairly and equitably. Nonetheless, all customers may not be equal. For example, if 80% of a business profit comes from 20% of customers, the business will focus more on the 20% than on the 80%. It does not have to 80/20, it can be 70/30, 60/50 or 90/10.
[Lets lead like eagles, not careen off the cliff like buffaloes]
do not take supplier merchant and do not pay then your business fail Bosss
So good advice from a banker to civil servants and other government employees:-Keep your 9-5 job sitting in your LazyBoy chair with air-conditioning and free coffee while supervising your own start-up business.
Whatever happened to the risk taking entrepreneur.
We really let things get out of hand adopting this way of business. We came out of slavery now everyone wants to go to the bank for a loan. Start small build up and be free.
Banks are not necessary not in the slightest especially if persons work together and they know this.
They want you to get a loan and think about yourself alone. Now you have money and dont need no one else.
When the loan crunches in and you cant pay up there is no one to turn to and they take what ever you had, regardless of what ever payments you made towards the loan in the past.
We need to take a long hard look at how we will move forward without a collar and a owner.
If the government is serious about moving us forward there needs to be money allocated for grants to small business. Start small build up and be debt free.
7.2m spent on planes or the over run at the pier park, Think how many small businesses that could have helped to establish, debt free. How many persons that could have helped.
Live in debt die in debt. Pay off the mortgage, loan money to start a business. When does the cycle end?
Go back to the bible, go back in history, and realize what is going on right before our eyes.
Loan from the bank good
Grant from the government bad
wake up! Help one another be happy for each other’s success, end the crab in a bucket mentality that surrounds the concept of a grant.
Capital, store of value & payment processors. Are these obstacles that are impossible to overcome in this internet age?
This is black history month. Ponder Martin Luther King Jr and what his message would be were he alive today.
The slaves had nothing all they had was each other. Mathew 6:30