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.