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.
No. 2 I prefer he keep $15K safely while working via other ways to find a means of earning the remaining balance, for him to work hard to earn $15K I think it won't be long before he would earn $5K and I also believe that his choice of $20K business would be a successful one that is why he is insisted on finding funds to balance up, however investing $15K on other business in his bid to earn extra $5K might fail due the fact that it's might be nonviable business and the pressure to earn $5K quickly might lead to incurring losses to the fund thus jeopardized his plan.