“A business has one core goal and that is to prove that the business concept or the big idea can and will work once rolled out and operational. Often, businesses at launch phase complicate the core offering to a point where they require far more funding than they are capable of accessing. What you end up with is a good business succumbing to a poorly managed approach to launching or scaling,” explains Mags Ponnan, head of the business incubator at FNB Business
He shares insights on considerations that entrepreneurs should ponder when seeking funding:
“The thing to always remember is that access to funding comes at a cost. Entrepreneurs need to understand that borrowing money that will need to be paid back at an interest should always be the last resort. Should the business be in a space where it requires funding, then it should be calculated and measured during implementation and there should be a plan on how it will be repaid,” concludes Ponnan.