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

[Hewlet]

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.

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This is the typical situation a friend finds himself and we are just brainstorming in what best to do.

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[Don Pedro Dinero]

It depends on the specific situation and the type of business. Since you say in option 2 that you would get the money over a long period of time, I would opt for option 1, start the business smaller and gradually grow. There would be a third option, which I see he has not considered, which would be to take out a loan for that $5,000, which I am not a fan of because it adds risk and costs right from the start of the business but it is very common nowadays.

[KiaKia]

It depends.

If I am suffering and facing a lot, I would prefer to start that business with the 15k, I believe that every business can be started with some money, it doesn't have to be 20k, correct me if I am wrong, so what is the state you are in right now? Can you survive without this business?

If you can survive without the business then you already get something else going for you at a side maybe, if this is the case I would rather invest that money on Bitcoin.

You want to know why, I believe Bitcoin bottom is 15k while majority are still waiting for 10k for one BTC, halving is now getting closer than ever, I would buy Bitcoin and a year and half, I am sure that the 20,000 isn't going to remain 20,000 by 2025, I will be able to start that business if I still want and I will be able to secure a good amount of profits aside too for another purpose.

You don't have to tale this advice, it's just my own opinion, I've said that it depends on your present state you are in right now, if you are struggling to be in good shape/health its better to start that business, health is wealth.

[Ben Barubal]

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.

        That $15,000 is just a small business for you, here in the country I'm in, with that $15,000 I can buy a house and land, and a second hand car and a small business. In short, that kind of amount here is not a small business. I can also set aside an allocation in that amount to buy Bitcoin and other altcoins as well, actually.

       If we want to grow our money, even if it's a small amount, as long as you know how to strategize to grow it, you can definitely grow it, unlike others who have a large amount of capital, but the large amount is not properly rotated, so it's just wasted. capital size, in short growing money in the business is not based on the size of the capital you have in the business you want to do.

[EarnOnVictor]

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.

I will definitely choose the second, and I must tell you that I've been in this shoe before, it's also in many occasions, regrets are mostly the lot of those who choose the first option as they rely too much on luck to have the chance of making it possible. But, unfortunately, most ended up losing it or wasting most portion of it. Money is not easy to come by, preserving the ones we have if we don't have a better investment to channel them to is the best. It's better not to invest at all than to be involved in a business that can't guarantee a good return in such a chance and assurance that will guarantee the preservation of the money.

This narration doesn't translate to the fact that the person doesn't have a source of income or suffering from a lack of investment. This makes the wait to be worth it instead of losing the money and starting all over again and regretting it.

[PytagoraZ]

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?

In reality, in every business there must be a plan and a realization. A business plan that requires $20k in capital should be able to start with $10K. In every business there must be a priority scale, which are primary needs and which are secondary needs.

Yes, I know this is just wishful thinking, but in practice, if this business can't be started with $10k in capital, chances are your business plan isn't mature enough. So no need to hesitate, $15k is enough to start your business

[bluebit25]

I can sense the lack of confidence in the job the OP is pursuing here, as he mentioned failing quite a bit in a beginner field.

I agree that the biggest risk here is probably lack of experience, not lack of capital, so either you will continue to work parttime to gain experience, or you will spend money on experience to get back your lessons. But it's easy to recalculate the balance versus risk so you look at investments for the next few years to have basic financial support for long-term business operations.

[bayu7adi]

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

Realistically, I lean more toward option number two. Please discern between what constitutes a dream business and what qualifies as a side hustle. A dream business embodies one's aspirations for its operation. By having such a business, we've at least carefully considered why we regard it as our dream endeavor.

Waiting a bit longer isn't an issue, even though there are shortcuts promising acceleration but laden with risks. In fact, it's even riskier if we're not prepared for those potential pitfalls.

[icalical]

If it was me, I wouldn't just prepare the money if I want to start a business, I would also prepare skills and deep knowledge that relevant to the business I would like to start skills and knowledge is also a capital/investment if I want to start a business, so in this case, if the $15,000 is not relevant with the skills and knowledge that I already gain, then I would prefer to safe the more money, but if with the $15,000 is relevant to those skills and knowledge, then I would probably just start with $15,000

[Solosanz]

I don't understand with people who have such mindset where they must obtain specific amount of money to start a business.

The most important thing in business are idea and execution aka human resource, not money aka capital resource.

If you have a human resource, you can create a proposal and communicate with investors about your business. If your business are really good, they will not reject it.

Even you only have limited capital, you can start from small.

[TheUltraElite]

A loan to cover the 5000$ would be my take, but maybe I will take some more just to cover up some additional unforeseen costs. You just have to be in the debt as long as you can cover it and pay the monthly installment.

If you can start off with 15k then by all means do so, but if you are thinking of avoiding a loan, you are making a mistake. Loans and businesses work hand in hand, both exist to supplement the other and that is why the government pushes loans at lower interest rates to small businesses. If you are in the business you will be taking loans at some point or another.

[Kakmakr]

Well, I would weigh up the risk percentage of the two options to see what has the biggest risk and then I would steer away from that. In my country 2 out of 5 businesses fail within the first 3 years, so I would make sure that I do enough market research to see if I can be one of the 3 that make it.

I take it the other option is some kind of investment or even fixed Bank account with lower profit/interest? If your friend are young.. then taking chances ..carry lower risk, because if it fails... he or she has enough time to recover again.  

[radjie]

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.

Starting a business certainly requires a process, it cannot be denied that at the start of a business you will face failure first. This is certainly a lesson to be able to fix the points of failure that we experience.  Therefore, I am more interested in choosing the first option of starting a small business from the bottom with the hope of achieving success in the future

[Lorence.xD]

You're just short on  $5,000, which means you could still start a business where you'll have to budget that $15,000. For example, your plan is to buy equipments that require like $5,000, of course you'll have to be creative and to find a way like DIY tables and chair just for you to start a small business.  When you just starting to plan a business for sure you are aware of the risk. Even you completed that $20,000 you could also still lose. So there's actually nothing wrong starting from a small capital as well a small business. It would only depends on the owner how he could handle his business like target customers.

[arwin100]

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.

Come to think about this situation if you save do we have guarantee that we cannot touch it? for sure we have also high chances to get defeated by inflation so its no sense to save for long months or years since it will just a waste of time for deciding that to do.

If you have capital to use much better if you invest it and find multiple ways to make that money generate you an income since over the years you can make sure that your money grow. But just make sure that you are going to invest on legitimate programs and not to those scammers who promise heaven and earn to us so we will not waste our hard earned money for wrong investment decision we take.

[xSkylarx]

$15K is already huge. What kind of business are you planning? And also what are your reasons why you concluded that you needed $20k for that business? Just a tip try to run down and calculate again what is needed to put up that business because there is a possibility that the total is just $15k or less and you just overprice those other things. Try to make a list to list it down and if the price is needed you need to go to a local supplier and ask for the price and that is where your base is.

If $20k really is the result then I would wait and still save more to have $20k and start the business only if that business is really feasible and you are very sure that it is a good business and not just thinking about it overnight and deciding it.

[kryptqnick]

If it's a dream, and you're already at $15k, I see no reason to let go of that dream and exchange it for something smaller, less relevant to you personally. So I'd try to accumulate the remaining money and go with the original idea because I believe that people should follow their dreams when it's possible to do so. Sure, it may not work out, but at least this way I'd know that I tried, whereas if the smaller option doesn't work out, there'd be more regret.
But another thing I'd reflect upon at this point would be whether I actually want that particular business and why.

[Porfirii]

It depends on the specific situation and the type of business.
-snip-

Nothing more and nothing less that what Don Pedro Dinero said. You posed a general question as if there were a universal answer valid for all cases, but the most important to take into account is what type of business you are talking about.

Hewlet, if I was you, I would write a contingency plan where I would write down the possible risks, the probability for them to happen, and the impact that they would have in the projected business, and only then make the decision accordingly. If you come to the conclusion that the business is low risk, then it could be a good idea to invest these 15K. Otherwise, it can be preferable to slow things down and save until you hit the 20K goal.

[Hewlet]

Come to think about this situation if you save do we have guarantee that we cannot touch it? for sure we have also high chances to get defeated by inflation so its no sense to save for long months or years since it will just a waste of time for deciding that to do.

That's a very serious point because event might play in and you might be left with no option than using the money to settle a more pressing mater.

[hugeblack]

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