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

[wallet4bitcoin]

So, if I understand correctly, the business will be fully setup at $20,000, which means the business can actually run at a significant percentage of completion, if it is setup at $15,000.

My suggestion in this case will be to set the business running at the capacity made available by the $15,000 and while at it, look out for investors who want to invest into projects and  also consider loans. The investors can get equity in exchange for their investment but they'll appreciate it more when they know you have invested more and also have started developing your product.

Everyone wants to be a part of something big but not when its about to get started and if you have what it takes to get it started, which in this case is the $15,000, get the ball rolling and invite them for the party.

[1715303944]

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[uswa56]

Personally, I would start my business in minor scale. There is a 25% difference between desired bankroll and currently real bankroll, but that must be manageable. Do your calculations again and try cutting expenses for now, so your plan fits the 15,000$ you have. Or, you can borrow money from someone to complete the 20,000$... That involves some risk, but since we talking about investing into an asset, which will generate profit for you along the time, it might worth. Just make sure to never borrow money to invest in liabilities.

In my opinion initially not buy all the necessary business related things to start the business but also buy all those which are must needed and keep other things aside for the time being. Because starting a business there will be a possibility of profit and later it will be possible to buy other things. But it is better to be able to manage the entire money to run the business fully. In this case you are saying that the problem can be solved by borrowing. If the money can be borrowed from someone then the business can be started with that money. The loan can be repaid later with the money saved from the business.

I think choosing not to use all the capital we have to buy business-related items is more because when we are just starting a business we still need money for unexpected things, but if we use all the capital we have to buy goods for business needs, then we will no longer have money if the business we build does not generate income. Choosing to borrow money for business purposes is certainly better, but we need to understand the risks of borrowing if we cannot pay it off.

[jaberwock]

We really don't know the details of his business plan all we know is the capital that they need but if they didn't assess the situation of whether the business will strive or not then that is a huge problem as they are having a huge amount of capital without a proper business plan.

The problem if OP starts a small business first to see if that business will work is that he will still spend some money on it unless his business plan is to sell shirts which he can try to sell 10 of but if it is bigger then that would be a big problem.

If you start without having a business plan then you are going to end up with a loss one way or another. I believe that people who are not ready for everything to go wrong, are the people who end up bankrupting. I had a friend who started a simple cafe, somewhere you buy a cup of coffee and maybe like some slice of cake, nothing major and quite simple without a doubt.

You know why it went wrong? Because, he just calculated for customers not showing up for a while, that's the most easiest part, but he didn't consider all the licenses, all the governmental paper work, all the health department requirements, when you start a business, ANYTHING could go wrong, you have to be ready. Always start small, but if you can avoid it then I would say investing into bitcoin would be much better than anything else.

[Mpamaegbu]

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.

I know we're dealing with a hypothetical situation here (though you said it's a real life situation), I still want to point out the error in your maths. The remaining cash to make up the $20,000 should be $5,000 and not $15,000.

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

I'm a firm believer of stating small to grow big. Conceive what and how you want the business to be and start by prioritizing what you need to get the business running. Sometimes, financial temptations may arise that can make one misplace the cash set aside for the business if the business hadn't already begun. So, I would start with the $15,000 and gradually grow the profit.

[Dr.Osh]

Firstly, I will calculate how I will get the remaining $5k and how long it will take me to accumulate it. If I can get it together in the near future, then I will save the $15k and build it up until I can reach $20k and start investing. However, if I can't raise $5k in the near future, then I will try to adapt to $15k and look for a business that is legit and has very little risk. Even though the profit is small, at least I can make extra money from the $15k. The principle that I have, if I aim to invest, or build a business, then I will not save the capital that I have for a long period of time.

[SmartCharpa]

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.

It depends on the circumstances, but when it comes to this it will be very risky to invest the money for a short period of time. For instance, what if we decide to invest in something like bitcoin, For example, what if the price of bitcoin starts to fall and we invest for a short period of time? That is another big risk to take. I'm still wondering about the types of people who are still waiting to have this kind of huge money before starting a business. If i have that amount of money i will start up with my business immediately there's nothing to think about.

When conditions come like this,  my plan will depend on how things turn out. If I can start my business next year, I'll invest the funds in bitcoin because that is the best thing to do, but if the business meant to start on time, I won't even consider investing and will instead start the business with the smallest amount of funds available. Despite the state of the economy, I believe that $15k will be enough to start a business. Everything was designed to be done gradually when the time is right, and I am confident that within a year the business will turn a profit because so many people want reach the level that they are not up to.

[tjtonmoy]

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 think the 2nd option is the better one. Let me explain. When you have a target or something that you want to do in your mind, you can save money easily for that until the target is reached. But if you spend that before that target is reached, you will make some wrong decisions. Keeping a clear goal in your mind will lead to more uniform decisions. You will most likely do more digging about every possible loss or profit.

More importantly, when you have a goal or a business idea, you will do more research on it and make a good idea about how it will work out in your favor. But if you drop the idea and suddenly jump onto some other small business, you won't do as well as you could have done with the original idea you had. If you make any huge losses on that small business, it could also affect your original idea in the future.

So I think prioritizing the main goal first and saving to reach $20,000 first will be the best option. But that all depends on you. If you can profit from the small business and then carry on to your main idea with that, then that could be a great thing. But do the same thing you would do with your original idea. Learn everything before jumping into it.

[abel1337]

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.

It really depend on you also on what type of business you are into. There are business that you can compromise on other things so that the cost will be lower but upgrade the things you compromised after your business grows. Another thing is the experience you have, if it's your first business, first option would be your best choice in my opinion given that first businesses doesn't succeed or grow as much as you expected. It's the experience what's important in growing a business. You also don't need to go all-in in your first business as it is your first business and you will encounter a lot of problem on your way.

If you have an experience and you know yourself that the business you are launching has a high chance of growing and the budget is strict in to that range, go choose the second option. There's a lot of factor in your scenario and only you can indicate what will be your next move.

[stomachgrowls]

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.

If you are really that in the verge on choosing whether you would be saving up more or would really be engaging on some business then it would really be definitely be that depending on you. So the main question is;

How long you've been able to save up that $15000? It would reflect out on how long you would really be able to get that another 5k.
Can you really that take up risks on running a business and make use that 15k as a capital and earning 5k with it?

Dont make yourself in a rush and its up to you on trying out to scale out on which method you would really be that able to see that it would really be a viable thing to be done.
We do know that not all are risks takers and love on doing on the much lesser risky kind of method. All of us doesnt really want to lose up money but in order for you to
have those kind of advantages then you would really be needing to act fast so that you wont really be finding  yourself that getting behind specially
if you are really that aiming for some opportunities that you might encounter along the way.

[Woodie]

If you have been saving for such a long time to get to $15000 then why stop or giveup now when you can see the finish line

Besides if you change plans in the middle of a mission then am affraid that the long term business plan you have had for a long time might fail too as you can't stick to the initial one !!

Btw if you are short by $5000 then you can keep saving till you have the full amount as you have planned for this and know how long it took you to get here and you won't play around with the business once it takesoff....so I would keep saving to avoid changing my investment plans.

[lombok]

I chose to keep the $15,000. It is very risky to put into any investment. That's your dream, don't risk that $15,000 on a stupid move.
When you are tempted to invest with big profits, from there your mentality will be damaged and this will result in loss of funds. Save and wait for your remaining $5000 to start your dream business.
If you want to invest in Bitcoin, do it with money that you are willing to accept if that money decreases in value. because Bitcoin can rise rapidly or fall drastically. However, in the long term Bitcoin will always rise.

[Darker45]

The plan is to start a certain kind of business, a dream business as you say. For that plan or that dream business to be achieved, the amount needed is $20,000. You are already on track to finally succeed as planned. You're almost there. I now wonder why do you have to change direction all of a sudden? If the plan remains perfect, why do you have to swerve?

I would consider the other option only if I found out that there's something significantly wrong with the plan and that it probably won't work out in the end, or perhaps if I realized that I actually don't like the idea or the business. But if these aren't factors, I'd certainly stick to the plan.

[Xampeuu]

I chose to keep the $15,000. It is very risky to put into any investment. That's your dream, don't risk that $15,000 on a stupid move.
When you are tempted to invest with big profits, from there your mentality will be damaged and this will result in loss of funds. Save and wait for your remaining $5000 to start your dream business.
If you want to invest in Bitcoin, do it with money that you are willing to accept if that money decreases in value. because Bitcoin can rise rapidly or fall drastically. However, in the long term Bitcoin will always rise.

Basically we have to take into account the rewards and risks ahead, so that if something bad happens this doesn't cause deep disappointment. on the other hand, by having knowledge in advance about what we are going to invest in, it can make us control the risk, what happens a lot is that they invest only oriented towards profit which is very comfortable to imagine

[Lantind]

I chose to keep the $15,000. It is very risky to put into any investment. That's your dream, don't risk that $15,000 on a stupid move.
When you are tempted to invest with big profits, from there your mentality will be damaged and this will result in loss of funds. Save and wait for your remaining $5000 to start your dream business.
If you want to invest in Bitcoin, do it with money that you are willing to accept if that money decreases in value. because Bitcoin can rise rapidly or fall drastically. However, in the long term Bitcoin will always rise.

Basically we have to take into account the rewards and risks ahead, so that if something bad happens this doesn't cause deep disappointment. on the other hand, by having knowledge in advance about what we are going to invest in, it can make us control the risk, what happens a lot is that they invest only oriented towards profit which is very comfortable to imagine

Before taking steps to invest, we will really look at various things depending on our needs, whether the money we have has fulfilled all our needs or not and if we still cannot meet our own needs, it would be better to postpone investing. In making an investment, we need to have knowledge about the investment we are going to carry out and we must really understand the risk of failure, we need to be able to overcome it. I agree with you, maybe there are some people who want profits from investing, they don't think about the risks if their investment fails.

[Gaza13]

For point 1, before starting the business world you must have important steps that you must take, namely making a strong business plan. A business plan is not just about profits, but also about a deep understanding of the target market that we see among the communities competing to market our products. If you want to start a business but don't have any experience, don't start immediately with a lot of capital, that's very dangerous for you, start first with relatively small capital. If the profits are small, that's okay, the important thing is that you can learn business while practicing directly. In my opinion, there are several important points in starting your first business.
1. Cheap capital (packing costs, raw materials, tent costs, etc.)
2. Look for products that are easily accessible to lower or middle class people.
3. Simple in working system.

For point 2, if we save our money in the bank it is good while doing other work, but saving in the bank will not make our money increase but will reduce our money, there are fees we have to pay, for example bank administration and bank card registration. Your money would be better if you invested a few percent of your living needs. Save your money to start a small business such as selling credit, selling fruit juice and drinks like McDonald's and other products.

[Gallar]

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?

If that $15k is truly money dedicated to starting a business, there's no harm in investing it first in an asset like bitcoin or another business. Indeed, this will have risks that can reduce or even eliminate all the money you have, but the opportunity to increase that money will definitely still be there too. So even though there are risks, you still have hope that your money can increase. However, for example, you want to avoid risks so that your money remains intact. Maybe earning some extra money first is the right thing to do. Because if you or your friends really want to achieve the desired business goals, then being patient until you have sufficient funds is the right thing.

Especially if the circumstances are very supportive. Like still having a permanent job which will definitely make it easier to collect money. So being patient is the right thing. However, if for example the conditions are not favorable, for example finding additional money to start a business is very difficult. Maybe changing the business plan is the right thing to do. Like the first point you wrote, the point is to invest or create an affordable business with $15k capital.

So think again carefully, in terms of circumstances, and the desires you want to achieve. Are you able to be patient to survive and achieve these (business) goals, or not.

[Xcode7]

I chose to keep the $15,000. It is very risky to put into any investment. That's your dream, don't risk that $15,000 on a stupid move.
When you are tempted to invest with big profits, from there your mentality will be damaged and this will result in loss of funds. Save and wait for your remaining $5000 to start your dream business.
If you want to invest in Bitcoin, do it with money that you are willing to accept if that money decreases in value. because Bitcoin can rise rapidly or fall drastically. However, in the long term Bitcoin will always rise.

Basically we have to take into account the rewards and risks ahead, so that if something bad happens this doesn't cause deep disappointment. on the other hand, by having knowledge in advance about what we are going to invest in, it can make us control the risk, what happens a lot is that they invest only oriented towards profit which is very comfortable to imagine

Before taking steps to invest, we will really look at various things depending on our needs, whether the money we have has fulfilled all our needs or not and if we still cannot meet our own needs, it would be better to postpone investing. In making an investment, we need to have knowledge about the investment we are going to carry out and we must really understand the risk of failure, we need to be able to overcome it. I agree with you, maybe there are some people who want profits from investing, they don't think about the risks if their investment fails.

Regardless of the situation, we cannot invest money that we might use for other things, it is quite risky because of course we will rush and panic when what we plan does not match what happens.
But apart from that, the money we save will never become anything and all investments have the possibility of profits that are worth the risk, so I think we have to dare to try something to achieve the possibility.
And regarding studying before investing, of course that is the first thing that needs to be done, we cannot possibly invest in things we don't understand.

[armanda90]

Regardless of the situation, we cannot invest money that we might use for other things, it is quite risky because of course we will rush and panic when what we plan does not match what happens.
But apart from that, the money we save will never become anything and all investments have the possibility of profits that are worth the risk, so I think we have to dare to try something to achieve the possibility.
And regarding studying before investing, of course that is the first thing that needs to be done, we cannot possibly invest in things we don't understand.

Got frustrated later when their investment planning not match with result or profitable expected, this important thing about management risk, have knowledge until marketing knowledge with business start. Important part when investing in some business we have to know about business kinds we want to invest and don't put or invest with anything we don't know.
Talking about capital in investment depend with our knowledge how much can manage it, if still lower budget keep give profitable its not matter have push with huger fund for investing but keep in the good control when start investing in some business, know first of business or investing is most important before taking action with investment later.

[Y3shot]

If getting the complete 20k will stress me to raise up I will just start the business with the 15k, though it depends on the kind of business and doesn't necessarily mean that one have to gather up 20k to start up. In business it is best when people start with the amount they can afford as the business grows one can decide to pump in money in it to expand the business. The important thing one needs to do when starting a business is to make sure that it is a business that one have the understanding of managing it because every business has it own risk.

[lombok]

~snip~

Regardless of the situation, we cannot invest money that we might use for other things, it is quite risky because of course we will rush and panic when what we plan does not match what happens.
But apart from that, the money we save will never become anything and all investments have the possibility of profits that are worth the risk, so I think we have to dare to try something to achieve the possibility.
And regarding studying before investing, of course that is the first thing that needs to be done, we cannot possibly invest in things we don't understand.

Even learning is not enough for just 1 or 2 days and there are so many things that are related to each other. Of course studying business, investing in crypto or outside of crypto has basic things, but if you look at it, it will be much different.
Therefore, never dare to use money that is intended for your dream business with any investment. Keep saving until you can set up the business so that it runs and makes a profit. Invest in crypto or other investments once you have more money from the results of your business. That would be safer and more convenient to do.