|Starting Wine Business in Canada|
|Drinking too much can lead to debt problems|
Starting Wine Business in Canada
Starting a wine business in Canada is a great idea if you have enough cash to cover the costs, good knowledge of the steps required, and a healthy credit score.
What You Need
To begin with, you need a detailed business plan to ensure that you are offered favorable terms. A good business plan (http://www.canadabusiness.ca/eng/page/2753/) for a wine business includes your goals and financial estimates, total liabilities and funding, and start-up requirements such as pre-opening training and staff, store layout, security, telecommunications, computer systems, marketing, stationary, legal, and other start-up expenses. You may also want to include details such as your company's facilities and locations, market segmentation, summary of market analysis, as well as buying patterns, competition, and industry analysis. It is a good idea to list details such as potential customers, intra-state shipments, direct deliverables, bulk volume, competitive edge, and so on. Make sure you also include information on your target group and how you plan to increase your customer base. This can be done in different ways, for example, television, radio, online ads, brochures, in-store ads, direct mail, newspapers, etc. The goal is to prove that you are able to maintain awareness and increase your customer base. Think of activities that will make it possible to stimulate your business, whether it is offering customer service online, publishing a newsletter, offering wine knowledge, matching different foods with wines, wine tastings, etc. You must also have a sales and marketing strategy. Feedback is a key component to implement innovations and improvements. Make sure you master new techniques, share success stories, and try new approaches.
Financing Sources for Your Wine Business
Borrowing a business loan if you have bad credit can be a challenging task but there are some things you can do, depending on your requirements, money worries, deadlines, and so on. One way to go about this is to visit your local bank and check if you qualify for both secured and unsecured business loans and which option goes with more favorable terms in your particular case. A secured business loan usually requires some type of business asset to serve as collateral, i.e. guarantee of prompt repayment in case of default. The presence of collateral means less risk for your credit union or bank and obviously – more risk for you to take. This is a good way to secure a lower interest rate though. If you are not willing to take the risk, then another option is to apply for an unsecured loan and agree to pay a higher interest rate. The type of loan to apply for depends on many factors such as strategic alliances, your sales program and forecast, personnel, stock and delivery, and so on.
If You Have Multiple Debts
If you have multiple credit card and loan balances, it may be a good idea to repay your debt first and then apply for a loan. One solution to this end is to apply for a debt consolidation loan with your bank or another financial institution. Consolidating your personal debt makes sense for a number of reasons, the most important being more affordable payments: https://www.debtconsolidation-loans.ca/debt-consolidation-strategies-for-canadians/ Reduced payments, on the other hand, also mean that it will be easier for you to make payments on time, which will have a positive effect on your credit score. One you notice a significant improvement of your credit score, this is the time to apply for a business loan and benefit from lucrative offers to start and expand your wine business in Canada. (http://fermentations.ca/wine/)
Drinking too much can lead to debt problems
Drinking too much can lead to debt problems for a number of reasons, especially if you are new to credit or already have missed or late payments and a tarnished score.
Reasons Why Drinking Could Result in Excessive Debt
One of the main reasons is that drinking usually results in poor judgment and unnecessary purchases, which is basically living beyond your means. If poor judgment combines with unhealthy spending habits, then drinking is a serious problem. Plus drinking on a daily basis means money spent on beer, wine, vodka, or whatever you prefer to drink. If you use your credit card at the liquor store, bar, or restaurant on a regular basis, the chance is you rack up debt without realizing it. This can result in tarnished or bad credit which makes you a risky borrower and limits your chances when applying for different financial products. This means that if you need urgent cash, it is likely that traditional lenders will turn you down and you will be forced to resort to non-traditional or sub-prime lenders. They offer short-term, high-interest loans which only add more debt and increase the cost of borrowing.
Obviously, the first step is to stop drinking or limit alcohol intake as much as possible so that you don't add more debt to your line of credit or card debt. The next step is to compare different solutions and think of what works best for you. This depends on the types of debt you have, as well as amounts, rates, and other factors. Debt consolidation is one solution to your financial worries, and there are two options to look into, depending on the types of credit used: http://www.debtconsolidation-loans.ca/ If you use more than one credit card that carry high interest, then this is a good time to shop around for deals and find good balance transfer cards. Many credit unions, banks, online services, and other providers offer balance transfer options with very low or zero rates. The longer the promotional period during which the low rate is valid – the better. You will have more time to repay debt and deal with your outstanding balances. If you have different types of debt and not only credit card balances, you may want to think of a debt consolidation loan with a competitive interest rate: https://www.debtconsolidation-loans.ca/debt-consolidation-loans/ Many local, regional, and big banks offer debt consolidation solutions to new and existing customers. Debt consolidation comes with multiple benefits for customers, regardless of whether you opt for a balance transfer or a consolidation loan. In addition to a lower interest rate, borrowers have a single payment to make, and it is much easier to remember a single due date. Another benefit for borrowers is the fact that payments are more affordable and easier to keep up with, which makes it a safe and painless way to avoid bankruptcy. Bankruptcy has serious consequences, one being a ruined credit score. There are other alternatives to balance transfers and consolidation, including negotiation with creditors and credit counseling to learn more about credit and reduce your monthly payments. In any case, if drinking results in excessive debt, this is a problem to deal with even if you manage to get rid of debt.