‘Taking Loan To Star Business Is Risky’
Prospective entrepreneurs have been advised to avoid taking loans to start a business.
A Port Harcourt based businessman and motor spare dealer at Ikoku spare parts market, Ikechukwu Innocent gave the admonition in a chat with The Vortex in his office located in the market.
According to the businessman who specializes in the sale of used Japanese Motor shocks and suspension spare parts explained that business starters run the risk of early collapse they depended on loans taken from the banks or from individual for their growth.
He stated that there is the tendency of such business to be choked up by the demands for repayment of the loan and the accruing interests on it.
“For me, I did not start my business with any loan. I started on my own with the funds given to me by my master and the personal saving I had; and help from my parents and friends, and I began to invest the money and gradually I started saving money to grow the business. I will not therefore advice any business beginners to go for loan to start a business”, he emphasized.
Ikechukwu said taking loans to start any business will depend on the understanding between the investor and the pridncipal.
Describing the starting period in business as the most challenging, Ikechukwu stated that he embarke on what he termed, hustling, having to chase for customers but the earlier years of is business before settling down to grow his own business.
Ikechukwu said many traders who made it big in the spare parts business in the market started from hustling (Oso Ahia) before they stabilized.
“As a beginner, I faced challenges then, I use to chase after customer before a customer could buy from me. We had to persuade and persuade the customer to patronize us, but now I can stay in my shop and wait for my customers to come, that’s the way it is”, he explained.
The motor spare parts dealer told The Vortex that he spent 7 years learning the ropes of the business, and added that he ensured that every money that came into the business was appropriately used and deployed to push the business forward and gradually, progressed in it”.
Ikechukwu who described the business of motor spare parts at the Ikoku market as highly rewarding, and explained that traders get them supplies from Onitsha, Nnewi and Lagos markets.
On how to identify the original parts from fakes, the businessman said the difference was always clear, insisting that what it takes is to show the customer the qualities of the items and allow the customer to make the choice of which to buy.
He however lamented the negative effect of the economic crises on the spare parts business, stressing that there is no business in the country that is not feeling the adverse impact of the bad economic policies of the government “The economy is very bad, we are only surviving, the Igbo man will never die, we must survive as usual”, he declared.
On insecurity in the market, Ikechukwu appealed on the security agencies and the government to assist the traders in tackling incidents of criminality in the market.
He maintained that the Ikoku environment is a good place and safe for business transaction; and urged the customers to the market to continue to patronize the market. “All is well here and there is no problem in Ikoku”, he concluded.