Alex Genadinik is a mobile app developer. Alex focuses on creating apps which are as helpful as possible to people. His current work focuses on helping first time entrepreneurs get help starting their businesses.
For the past year I have been working on mobile apps to help people start their own business. There are now 18 mobile apps to help people plan, start, and grow their businesses. The apps can be found on all major platforms such as iPhone, iPad, Android, Amazon Kindle, and the NOOK tablets from Barnes and Noble. The can be used privately, or with professional help when people select the option to get help and advice. As the total number of businesses planned on the apps reaches 10,000, I personally have helped well over 1,000 people turn their ideas into actionable plans and would like to share some common patterns in the challenges the users of my apps face, as well as some of the solutions I have found to be effective.
The most common issues people tend to face when starting a business are lack of financing, the inability to market their businesses effectively, or simply having bad business ideas for one reason or another. We address these issues in full in different mobile business apps of ours, but in this article I will focus on how some of the people have been able to help meet the financial goals of their businesses by getting small loans to help them get started.
Quite often, I find that what holds people back from starting their business is actually a very small sum of money. Traditional banks don’t lend money to people who have not started their businesses. Most people do not like to ask their friends and family for money, and almost no investors want to invest in small “lifestyle” businesses. The next option is possibly getting a grant, but for most people, applying for grants is just a waste of time. The only options that remain are using people’s own savings, or if they do not have savings, taking out a small business loan as the last viable option.
Most of the business loan solutions out there (even non-banks) focus on providing a loan to existing businesses after they have been in business for a certain period of time, or have a certain minimum monthly revenue threshold. What I found great about the Lendio solution is that people with good credit scores are able to get a loan to fund the initial stages of their businesses. For people who need certain equipment to start, or to finance the initial website creation or marketing, or simply to market-test their ideas, a small loan is often exactly what helps them accomplish it.
Of course, getting a loan is not without its risks. At the end of the day, the loan has to be paid back, and that is something I go out of my way to warn people about, and make sure they understand. But in my experience, only a small percentage of people who would like to receive funding are ok with doing that via a loan. Most people prefer getting “free” money such as through donations or an investment. So people who already have their minds set on getting a loan cannot be easily talked out of getting a loan once their mind is set. And a small loan with the help of Lendio is a very good solution for them.