Quote from: Biznesmen on November 04, 2023, 12:39:56 PM

Quote from: Hewlet on October 01, 2023, 05:05:13 AM

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.

I will seek venture capital from investors or use crowd funding to fund my business and get a small business loan too. I think this will make my business dream come true. Or, If I had a dream to do a business that I am capable of and a perfect plan to do it, I would definitely go for it. I will take a business loan from a bank for $20,000. So I am going with option three, neither option one nor option two.In option one, I thought I could use my whole savings in my business, but first of all, it's not enough money, and in business, there are extra other needs involved, so we need that money for emergency use. And the second option is to make me wait, but we don't know what will happen in the future; the situation may not be favorable.

Alternative ways are really good for taking business loans, try to do financial transactions through banks. If any loan is taken the loan amount should be maintained even expenses like phone bills need to be documented. In this way not only the accounting of the business is easy but also the quality of the business can be increased. Again the same business may have different budgets for different tasks everything can be accounted for. Then you don't have to calculate every time it can be understood at a glance whether the business is going towards income or expenses.