I my opinion, the business world, seen through a SMB/SME looking glass, has never been more cynical in my lifetime.
Banks pretend to offer loans, they never hand out. Now they even offer business advice (they certainly should know what NOT to do) in an attempt to show support for small business. Many of my clients don’t ask for loans to grow their business, because they don’t trust the bank – IMO, with good reason.
We do not know where this recession is going to take us next. Even if you could secure a loan, you can’t be sure it will not be called back in tomorrow. Then you are in a position where you have no loan, but also lost all your loan securities and possibly your business too.
Governments are involved in large scale spin when it comes to small business. In the UK if you are big business, you get drastically a reduced tax (below 6%) bill and your own HMRC “buddy”, not to speak of the financial help available to big business. If you are a small business you get the tax inspector charging you penalties and interest for every bit of genuine accounting mistake, no support, no help.
I believe that the large scale mistrust of the small business community towards government and banks is one major reason why this recession is so long and so hard on our economy.
What should you learn from all this? Simple – don’t start a business if you need help from government or banks! Using bootstrapping techniques will help you to get into business without loans and support.
You have been warned!