If you have plans to start a dream business that requires a capital of $20,000 and you were able to make a savings of $15,000 which obviously isn't enough to start up the business, what would be your decision or advice?
1. Invest the $15,000 into a smaller business hoping that the returns will yield the remaining $15,000 in a short period. Note that this has the potential of failing and wasting the already-saved $15,000.
2. Keep the $15,000 while doing other work that will yield the remaining money over a long period.
Would love to see your input or a better suggestion apart from the ones I pointed out above.
N/B
This is the typical situation a friend finds himself and we are just brainstorming in what best to do.
You can try to find a loan. If you do not have enough capital for the business you want to do, do not risk your capital by doing another business. Wait a little longer if necessary, but do the work you want to do. But as I said at the beginning, if you believe that your business will generate income, you can try to take out a loan.
As you make profits from your business, you can pay off your debts and accumulate capital again. I think the most important decision to be made here is whether you will be happy if you choose to do a job that you have enough capital for instead of the job you want to do.
I would take this advise on which it would really be that good on taking up such decision on which getting a loan would be your nearest option unless if you could borrow from your family or friends but in todays
standard which interest is much more lesser or smaller in banks than with your relatives. lol. So we would really be that taking up that loan option as long we can really be that approved on the bank on which approal nowadays is really that tough in the ass on which it is really that something that cant really be that attained by anyone. Never ever make yourself do risks out with other investment or business
on which you hadnt planned nor preferred because tendency of failure is high.
Instead on making yourself that being rush but since you dont have any options then this would be your likely be the option to be taken which is to take some loan then proceed with your plans.
Just make it sure that you would really be able to repay those loans in time so that you wont really be that experiencing any headaches later on. Just dont make yourself
on making rush decisions and think off carefully because if you dont then for sure you would really be experiencing mistakes and errors.