In any business, what comes first idea or money?

[Prime Dynamics]

What should come first when starting a business, the capital or the business idea? That is the question I sometimes ask myself whenever I come across JF bombarded threads on loans.
Imagine someone wanting to borrow and willing to pay the related borrowing costs before identifying the business to be engaged in. Looking for money before knowing the business and its capital needs exposes a person to the risks of over capitalization or under capitalization, thus dig’s you on a financial drip. Over capitalization is similar to planting a crop in a water logged area while under capitalization is also like planting a crop in small area with no rainfall. In both cases the crop will die smoothly.
Before you start worrying about getting the capital to start a business, there is other more important and urgent things that one needs to think through. First is your brain preparedness to be an entrepreneur. Entrepreneurship is a serious matter and not a hobby to pursue when the weather is fine. Entrepreneurs see opportunities where others only see challenges, they provide solutions when others throw up their hands in resignation. Zero down on the business idea before you start sweating about capital. For a business idea to fly, you need to have comparative advantage to fly on.
It is a good thing to first focus on the idea and figure out the money thereafter. In the event that the money is not enough for the grand idea consider parceling it out into smaller ideas or getting partners on board to help you make it a reality.

 

[kagamba kadogo]

money are always available to find than a genuine business idea.

 

[CONSULT]

What should come first when starting a business, the capital or the business idea? That is the question I sometimes ask myself whenever I come across JF bombarded threads on loans.
Imagine someone wanting to borrow and willing to pay the related borrowing costs before identifying the business to be engaged in. Looking for money before knowing the business and its capital needs exposes a person to the risks of over capitalization or under capitalization, thus dig's you on a financial drip. Over capitalization is similar to planting a crop in a water logged area while under capitalization is also like planting a crop in small area with no rainfall. In both cases the crop will die smoothly.
Before you start worrying about getting the capital to start a business, there is other more important and urgent things that one needs to think through. First is your brain preparedness to be an entrepreneur. Entrepreneurship is a serious matter and not a hobby to pursue when the weather is fine. Entrepreneurs see opportunities where others only see challenges, they provide solutions when others throw up their hands in resignation. Zero down on the business idea before you start sweating about capital. For a business idea to fly, you need to have comparative advantage to fly on.
It is a good thing to first focus on the idea and figure out the money thereafter. In the event that the money is not enough for the grand idea consider parceling it out into smaller ideas or getting partners on board to help you make it a reality.

Thank you very much for your advice, first I would like to inform you that not everyone that come in this site has been prepared critically like you think, most of them they just pop in to test regardless is serious or not or is ready to or just collect information for future use, so don't bother your head, second you have impressed me for this advice it seems that your competent is business knowledge and myself am very much concern l would like to know each other for mutual benefits, third as am an entrepreneur there also senarios that it may happen you have capital or money before Idea then you have to look for the best Idea you can venture in, Hope to hear from you, Best Wishes .

 

[LAT]

thanks mkuu

a good business idea should be in place before anything

and willingness to learn and adopt entrepreneurial skills

 

[Aldo]

an idea shud come first,..
the idea can be used to prepare the business plan,..thus u can know how much capital is required,..money z there to finance the business and not to create it,,the idea is the most important part,..

 

[daisy]

Thank u for introducing this topic.

It very unfortunate that many people who would wish to start a business mistakenly believe that it is money which comes first, that is why many businesses collapses in no time after its establishment.

People real needs entrepreneurial education so as to acquire the necessary skills and experience.

Kwa kweli mi huwa nashangazwa sana na hizi micro-lending institutions zinawaibiwa hawa wateja wao sana, haziwapi elimu ya biashara ya kutosha alafu wakishindwa kurudisha mkopo wanawachukulia dhamana zao, and because these people( wakopaji) hawajui sheria don't even go to courts of law to challenge those unlawful acts. Too bad!!!!!!!!!!!!!!!

Ukiangalia constitutions zinazoanzisha hizi micro-lending institutions zinasema zitatoa mikopo pamoja na elimu ya jinsi ya kuendesha biashara ili ziwe sustainable lakini sivyo wanavyofanya and its because wanaajiri unqualified staffs who knows nothing about entrepreneurship alafu eti wanawaita maafisa mikopo kwenda huko mitaani kufuatilia biahsara za wateja nao wanahongwa wanapeleka taarifa za uongo kwa uongozi mtu anapata mkopo without merits lakini akiwa hajui kwamba at the end of the day he is on the losing side.

Sijui tuwasaidieje watanzania wenzetu kuhusu hili.