Know your business before applying for loan

PEOPLE who want to venture into business should ensure that they have well-researched ideas before going out to apply for loans or business support services.

Small Enterprise Development Agency (Seda) regional manager Nosipho Khonkwane delivered this plea at the Emergent Africa Development Forum last week.

"Some people come to Seda's offices without business ideas.

"As an entrepreneur you must have an idea and conduct research to understand if there is somebody who is going to buy the product. Sometimes people might have an idea but it might not be feasible.

"You must understand the regulations that govern how your business is going to operate and know the type of people who would buy your products or services.

"You must also know how you are going to sell your products," Khonkwane said.

Khonkwane also advised that entrepreneurs needed to know where they were going to source raw materials.

She said the agency also helped entrepreneurs who wanted to buy into existing businesses to conduct a feasibility study. - sibanyonim@sowetan.co.za