What would you do in this situation? Invest or save?

[Distinctin]

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.

Investing at a capital of $15k and a capital of $20k has still no difference, losing is still inevitable. That's why I'd rather chose the first option but I won't invest the whole amount of $15k but just a small amount that I can easily manage to lose. If I get lucky, I will get some profits that I will add on my savings and continue to invest more for future profits. However, if become unfortunate and lose my capital, I think that's something that I don't need to regret since we all expect this when things happen not according to our plan.

The important thing here is we gain some significant experience because the success of an investment does not only based on its own sufficient capital but it gives more credit to the person who is going to manage the investment, that's why building experience is always a must.

[1715361722]

1715361722

[1715361722]

1715361722

[Kelward]

They are tricky questions, but it all depends on the individual, to have a preference and go with it. The important thing is that you're not partying with the money, so either of the options is good to go. Although if i were in your friends position and I must make a decision to pick from either of them, then I'll go with option 2, because i believe that the moment that you dip your hands into money that is meant for something else, then that money might not be readily available when you'll need it. No business has 100% guarantee that you'll recover you investment capital when you need it, so it's safer to keep the money in savings, pending when you raise the remaining balance.

There are ups and downs in business, so it's better to start a business with the money that you have budgeted for it, so if you experience any lose, you can easily give yourself time to pick up again. Example is you invest the money in bitcoin, and the timeframe to collect the money has reached, at that time bitcoin price dips, it'll be a big regret for the person.

[btc78]

Although if i were in your friends position and I must make a decision to pick from either of them, then I'll go with option 2, because i believe that the moment that you dip your hands into money that is meant for something else, then that money might not be readily available when you'll need it.

i thought the same thing $5000 is a huge amount of money but if you’re only missing $5000 then you already have 75% of your planned budget you’re already closer to your initial plan, why go sideways?
unless of course you’re losing hope to get that missing $5000 then maybe you’ll just scratch the original plan to immediately start a business and gain profit soon after

No business has 100% guarantee that you'll recover you investment capital when you need it, so it's safer to keep the money in savings, pending when you raise the remaining balance.

There are ups and downs in business, so it's better to start a business with the money that you have budgeted for it, so if you experience any lose, you can easily give yourself time to pick up again. Example is you invest the money in bitcoin, and the timeframe to collect the money has reached, at that time bitcoin price dips, it'll be a big regret for the person.

exactly starting a business is always a risk so it’s important to plan everything down to a penny if you know that x amount of value is needed to start your dream business then don’t do shortcuts as this may not work in your favor later on

[nara1892]

exactly starting a business is always a risk so it’s important to plan everything down to a penny if you know that x amount of value is needed to start your dream business then don’t do shortcuts as this may not work in your favor later on

Of course that's true, because something that will be run through a process with the aim of success will always have risks that will follow us, whether it's the risk of failure or loss and others. Therefore, of course, as you said before starting a business, the main thing that must be considered is designing a plan that can really lead you to the goal of success, besides that there are still quite a lot of other things that you prepare such as management, capital, market research to determine targets, marketing to attract more audiences and others. None other than because business competition with other competitors today is very tight, they do not hesitate to do anything that can make them superior to us.

Returning to the topic that capital is indeed the main thing that must be owned by everyone who wants to start a business, of course you need to prepare a sufficient amount of money to start your business plan, if you feel that your finances are still insufficient then yes it is better to save first, because with you having strength in terms of capital then maybe you will also be more free to carry out your plans and of course it must also be with good management, do not let you force for example by borrowing from others or to the bank because of course it will cause pressure, while on the other hand the business will have ups and downs in terms of profit.

[Youngkhngdiddy]

Without knowing the nature of the commercial activity, the work is a feasibility study for it, there is no need to give you advice, and that the commercial business varies according to the market, legislation and taxes, your experience in the market and the extent of your relationships and activities, distinct from investment and profits after deducting taxes, but in general, if Bitcoin is legal in your country, the tax specialties are lower. You can wait for two years to start your project, as investing in Bitcoin will be positive, as as a result, the price rose to more than 70k within the next 24 months, with the possibility that the price will decrease.

This is not investment advice, DYOR

    Both options are good and they both will yield financial returns but just one has a 50% probability of either yielding more returns or loosing all but still is the best of the two options and it's actually the one I'd settle for personally.Saving is good cos it serves as a savior in rainy days where there's a situation of exhaustion and backup oils urgently needed but it doesn't make for greater income in the long run.
    Investing on the other hand has a probability of failing and also scaling through, it's unpredictable and it should be expected in situations where it fails and causes loss. Investing is the best option because it even gives better chances of working out and definitely when it does work out, the outcome will be evident.
So for me, I'd opt for an investment plan no matter how small the capital or the business may seem because there's far more better advantage in investing than saving and the disadvantage gap too is clear.

[arimamib]

Returning to the topic that capital is indeed the main thing that must be owned by everyone who wants to start a business, of course you need to prepare a sufficient amount of money to start your business plan, if you feel that your finances are still insufficient then yes it is better to save first, because with you having strength in terms of capital then maybe you will also be more free to carry out your plans and of course it must also be with good management, do not let you force for example by borrowing from others or to the bank because of course it will cause pressure, while on the other hand the business will have ups and downs in terms of profit.

well yeah.. Having sufficient capital is the most important thing to start a business. It allows you to cover the initial expenses involved in setting up your business, such as obtaining permits, acquiring equipment, and purchasing inventory. Having adequate capital also provides you with more flexibility to make strategic decisions and adapt to market changes.

But then, relying solely on borrowed capital can put a strain on your finances and increase your risk of failure. Excessive debt can lead to high expenditure, which can eat into your profits and hinder your business's growth. It is advisable to start a business with your own savings or by securing a small business loan that you can comfortably repay. This will give you more control over your finances and allow you to focus on building a sustainable business model. By managing your capital wisely, you can increase your chances of success and build a thriving business that not only generates profits but also provides you with long-term financial stability.

[Negotiation]

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.

[Baki202]

They are tricky questions, but it all depends on the individual, to have a preference and go with it. The important thing is that you're not partying with the money, so either of the options is good to go. Although if i were in your friends position and I must make a decision to pick from either of them, then I'll go with option 2, because i believe that the moment that you dip your hands into money that is meant for something else, then that money might not be readily available when you'll need it. No business has 100% guarantee that you'll recover you investment capital when you need it, so it's safer to keep the money in savings, pending when you raise the remaining balance.

There are ups and downs in business, so it's better to start a business with the money that you have budgeted for it, so if you experience any lose, you can easily give yourself time to pick up again. Example is you invest the money in bitcoin, and the timeframe to collect the money has reached, at that time bitcoin price dips, it'll be a big regret for the person.

Questions like this you need to carefully think on what exactly to do, but with way the economy is going saving is kind oh a bad idea I will prefer to invest and get returns either daily or monthly depend on the chosen investment. Because sometimes you might have the intention of saving but at the end of the day you might end up spending the money.  And true that business don't have 100% assurance but I still choose investment is left for me to chose my investment wisely. And their are businesses you can start with small money, but like you said it is an individual decision, you want to safe you can go ahead you want to invest you can also invest.

[Lamkuthang]

2. Keep the $15,000 while doing other work that will yield the remaining money over a long period.

If I just choose number 2. Just leave our investment there and take him back when the time comes as you said. At least this is wiser in investing and we can relax and enjoy life and the available funds are sufficient to recharge our bodies which feel tired due to full activity.

Are we going to dedicate our time to making money for the rest of our lives?

[Youngkhngdiddy]

well yeah.. Having sufficient capital is the most important thing to start a business. It allows you to cover the initial expenses involved in setting up your business, such as obtaining permits, acquiring equipment, and purchasing inventory. Having adequate capital also provides you with more flexibility to make strategic decisions and adapt to market changes.

But then, relying solely on borrowed capital can put a strain on your finances and increase your risk of failure. Excessive debt can lead to high expenditure, which can eat into your profits and hinder your business's growth. It is advisable to start a business with your own savings or by securing a small business loan that you can comfortably repay. This will give you more control over your finances and allow you to focus on building a sustainable business model. By managing your capital wisely, you can increase your chances of success and build a thriving business that not only generates profits but also provides you with long-term financial stability.

  Between investing and savings, there's advantages and disadvantages. Now there's an amount of money with you, what would you rather do with it? Will you put it in a business that has the possibility of multiplying and yielding more returns or you'd rather lock them up somewhere where if opened next time will still remain at same value or even less. The issue with investments is fear of a break or fall out. What if the investment doesn't grow, what if it gets halted and depreciates what if losses are incurred, then the money which you'd have saved would be wasted just like that.
  For Savings, what if you had invested and it had really boomed, at least it'd have been better than still being left with same amount with same or even less value. Both ways the best is to save some and invest some just incase one or both works out, at least there'd be no loss two ways. Don't just jump into investing, take right precautions and ensure you make right decisions before putting your money in anything.

[gabbie2010]

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.

[kawetsriyanto]

If I just choose number 2. Just leave our investment there and take him back when the time comes as you said. At least this is wiser in investing and we can relax and enjoy life and the available funds are sufficient to recharge our bodies which feel tired due to full activity.
Are we going to dedicate our time to making money for the rest of our lives?

If you are afraid to take risks of investing that money, keeping $15,000 will be a wise decision. But if you just keep it, it means you don't invest that money. If you want to invest that money, you must choose the option of number 1. Both have the advantage and disadvantage, it depends on us to choose which option that is suitable with our condition. IMO, if we have no proper capability in investment sector, it will be too risky to invest $15,000. But if we know well how to invest in a certain thing and we are pretty sure to gain profits, investing $15,000 should be an interesting way.

[benalexis12]

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.

15 000$ starter in small business? Are you serious? Do you know that amount is not a small amount for us here in our country for the small business you are talking about? With that amount, I might have a convenience store or grocery store.

If it's that kind of amount here in our country, that's not a practical start-up for business because it's too big. You can have a business here even with a $50-$100 start-up, and there are a lot of microentrepreneurs here who have already become successful after several years of managing the businesses they built.

[angrybirdy]

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.

15 000$ starter in small business? Are you serious? Do you know that amount is not a small amount for us here in our country for the small business you are talking about? With that amount, I might have a convenience store or grocery store.

If it's that kind of amount here in our country, that's not a practical start-up for business because it's too big. You can have a business here even with a $50-$100 start-up, and there are a lot of microentrepreneurs here who have already become successful after several years of managing the businesses they built.

Well it depends on a state and country due to their cost of living. $15,000 is big enough for us who's living in Asia, you can buy a land or simple house and lot here in our country. With that, I suggest to used the half for business and the other half is for savings since we all know that building a business even if it's small or big, it will cost big risk and the potential of failing is always in there. Not being a negative thinker but It's better to think ahead of time so we can have a back up plan for the future.

[AicecreaME]

If your ideal business will cost you $20,000 or more, invest your $15,000 in Bitcoin, not into a smal business, because that's more risky in my opinion.

It's all about waiting game when you bought Bitcoin right now, or you could do something else like find away to earn money until you save $5,000 to complete your capital for your ideal business. It will depends on a certain person which option he would prioritize, on certain circumstances as well.

[invo]

If I just choose number 2. Just leave our investment there and take him back when the time comes as you said. At least this is wiser in investing and we can relax and enjoy life and the available funds are sufficient to recharge our bodies which feel tired due to full activity.
Are we going to dedicate our time to making money for the rest of our lives?

If you are afraid to take risks of investing that money, keeping $15,000 will be a wise decision. But if you just keep it, it means you don't invest that money. If you want to invest that money, you must choose the option of number 1. Both have the advantage and disadvantage, it depends on us to choose which option that is suitable with our condition. IMO, if we have no proper capability in investment sector, it will be too risky to invest $15,000. But if we know well how to invest in a certain thing and we are pretty sure to gain profits, investing $15,000 should be an interesting way.

However choosing option 1 is not easy and might result in an unexpected result. Investing in smaller businesses, or other people's businesses means that you're not the one holding your money to run the business. This option also shows OP making a rush decision where he can make a quick profit. The best option is to invest money in Bitcoin or if he does not consider investing in crypto, he can save more money until he makes enough money for his planned business.

[Inwestour]

If you are afraid to take risks of investing that money, keeping $15,000 will be a wise decision. But if you just keep it, it means you don't invest that money. If you want to invest that money, you must choose the option of number 1. Both have the advantage and disadvantage, it depends on us to choose which option that is suitable with our condition. IMO, if we have no proper capability in investment sector, it will be too risky to invest $15,000. But if we know well how to invest in a certain thing and we are pretty sure to gain profits, investing $15,000 should be an interesting way.

Funds always need to be diversified, and some part should be as a reserve for unforeseen situations, which we will not invest, but it will always be available to us 24/7. And the remaining funds should be invested only if you are confident that this investment will bring you profit and you understand what you are doing. If this is some kind of investment on someone's advice, then I would avoid it. Also, if anyone wants to buy Bitcoin now, then I would probably say that the best time for this has already passed, most likely you can still get x2 or even x3, but is this such a good profit when we are talking about high-risk investments?

[Crypt0Gore]

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.

Investing at a capital of $15k and a capital of $20k has still no difference, losing is still inevitable. That's why I'd rather chose the first option but I won't invest the whole amount of $15k but just a small amount that I can easily manage to lose. If I get lucky, I will get some profits that I will add on my savings and continue to invest more for future profits. However, if become unfortunate and lose my capital, I think that's something that I don't need to regret since we all expect this when things happen not according to our plan.

The important thing here is we gain some significant experience because the success of an investment does not only based on its own sufficient capital but it gives more credit to the person who is going to manage the investment, that's why building experience is always a must.

Some people know how to tolerate risks, 15k seem too much for investment but it's something I can easily live with, I know there is risk of losing it all but there is a saying to never put all your eggs in one basket, if you follow this strategy of diversification you will still win in the end.

I can decide to invest this whole money if I have another means of surviving, I've done it before where I solely believe in crypto investment only, and on the long run I made money bigger than what I could make if I have invested it in a business, crypto investment is more lucrative if you know how to go about it, we are still in a bear market right now and I am already in good returns of my investments.

Running a business is not bad but I will prefer to invest most of my money into crypto than to invest it in anything else, tell me about a business that can turn $1000 into 10k in just two months, if you know what you are doing with crypto you will make a lot of money.

[JoyMarsha]

OP, I want you to know that not all businesses that their owners start with the required money before they start up the business they have in mind. Some of the big businesses you see today, their owners started with a small money before they flourished to be big.

That's to say, A business must not start with a large amount before someone thinks of endeavoring into it. Start with the little you have, with steady consistency and commitment the business will blossom.

In every business, their profits don't come at once, they come regularly(little by little), and by saving the profits, you expand the business.

That's why you will find some people would like to start up businesses no matter how little the profits can be. Because they are hopeful to expand it in the future through the profits they receive from the business

[slapper]

well yeah.. Having sufficient capital is the most important thing to start a business. It allows you to cover the initial expenses involved in setting up your business, such as obtaining permits, acquiring equipment, and purchasing inventory. Having adequate capital also provides you with more flexibility to make strategic decisions and adapt to market changes.

But then, relying solely on borrowed capital can put a strain on your finances and increase your risk of failure. Excessive debt can lead to high expenditure, which can eat into your profits and hinder your business's growth. It is advisable to start a business with your own savings or by securing a small business loan that you can comfortably repay. This will give you more control over your finances and allow you to focus on building a sustainable business model. By managing your capital wisely, you can increase your chances of success and build a thriving business that not only generates profits but also provides you with long-term financial stability.

  Between investing and savings, there's advantages and disadvantages. Now there's an amount of money with you, what would you rather do with it? Will you put it in a business that has the possibility of multiplying and yielding more returns or you'd rather lock them up somewhere where if opened next time will still remain at same value or even less. The issue with investments is fear of a break or fall out. What if the investment doesn't grow, what if it gets halted and depreciates what if losses are incurred, then the money which you'd have saved would be wasted just like that.
  For Savings, what if you had invested and it had really boomed, at least it'd have been better than still being left with same amount with same or even less value. Both ways the best is to save some and invest some just incase one or both works out, at least there'd be no loss two ways. Don't just jump into investing, take right precautions and ensure you make right decisions before putting your money in anything.

There is no doubt that investing can lead to higher gains, but it also comes with bigger risks. There is a play where the possibility of growth and the fear of loss move together. It's not just about market trends; it's also about how much danger someone is willing to take and their financial goals. There are people who love the fast-paced beats of the stock market and people who find comfort in the steady beats of a savings account.

On the other hand, savings are safe, but they don't always keep up with inflation, which slowly lowers their value over time. The idea of "opportunity cost" comes into play here. The savings account money might be better off growing in other places. Diversification is important; spreading your investments out can lower your dangers. Or, put some of your eggs in different baskets. To make smart choices, you might want to do a lot of study, learn about market trends, and maybe even talk to a financial advisor. Controlling the seesaw of possible growth and keeping cash safe is a tricky business