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

[Peanutswar]

As always expenses rises due to inflations so keep your money in the bank with the low APY percentage is not ideal try to make a circulation the money, you don't need a large amount to start a business or make an investment as long as you know what you are doing and you can manage your money easily its good, life is full of risk, people say that get out with your comfort zone there's no person getting rich in working 8 hours a day than making a business and gains a lot of more every day than you are earning per day. Ideal to do the 50-20-30 ration in investment, savings and needs so you don't need to worry about too much in your money. Its hard to spend a lot now.

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[Kasabus]

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.

Taking a loan amounting to $5k is actually not bad if you have a stable job to pay for it. But if you have low income paying job, then don't bother to do that. It will only add more risk to your future investment.

However, given on the choices, I need to be practical this time and just keep the $15k while I'm busy finding additional job that will give me extra income. That way, I know my $15k will never be at loss and will always be fixed, while earning more from a new job that will complete my investment capital.

[Aanuoluwatofunmi]

Maybe we should make the difference clear from this point, in you Invested then you have just automatically safe up, but what makes it a savings is the kind of what you have invested, you cannot be dealing with altcoins and keep accumulating them for an investment and expect all things to be equal, the way we take risk also should be considered if truly they are worth going for, our investment will never be a waste only when we made the right decision, every other things comes after the risk taken for an investment.

[Pejoh Asu]

Most of us hope to have large initial capital to start a business, but we have to understand that if we are new and starting a business then the best thing is to start with small capital, if we already have experience and business prospects are very promising then we can get capital large ones by borrowing or creating shares so that it can be easier to convince investors.

[armanda90]

As always expenses rises due to inflations so keep your money in the bank with the low APY percentage is not ideal try to make a circulation the money, you don't need a large amount to start a business or make an investment as long as you know what you are doing and you can manage your money easily its good, life is full of risk, people say that get out with your comfort zone there's no person getting rich in working 8 hours a day than making a business and gains a lot of more every day than you are earning per day. Ideal to do the 50-20-30 ration in investment, savings and needs so you don't need to worry about too much in your money. Its hard to spend a lot now.

Usually in the Bank not have bigger loan interested depend with loan period, but to start business with small fund I don't think effective and difficult to earn much profitable later. Its not problem with large amount to start business if have knowledge and understood well with marketing system, if not not have capacity for building bigger business I don't see have good ideas with large fund and better with small fund as first experienced when building one business.
Build up some business I don't think have limit time for operating, depend with costumer needed and how effective operation should above 8 hours or have to operate 24 hours.

[jasonjm]

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?
-snip-

If you have a business idea that has the potential to grow in a year or two, you should go for it. You have $15k saving, take a bank loan of $5k (bank loan go hand in hand with the business) and starts the business. This way, you will fully concentrate on your business and might end up securing more investments from the business community.

Other options are not viable, in my opinion. You have to work for, you don't know how long, to generate that extra $5k to start a business, and in the meanwhile, someone else might have started working on your idea (or a similar idea). You could potentially lose a chance to make millions. So, get a bank loan and start your business right away.

[posi]

Most of us hope to have large initial capital to start a business, but we have to understand that if we are new and starting a business then the best thing is to start with small capital, if we already have experience and business prospects are very promising then we can get capital large ones by borrowing or creating shares so that it can be easier to convince investors.

When I first started, I liked the idea of a small business rather than doing something big. That's too risky because business is like investing, we won't be able to predict what will happen in the future. Even if we have a unique idea and a perfect plan, as long as we haven't implemented it and don't know how people will react, we can't be sure of anything. Let's start small and if everything goes as expected, we can scale according to customer demand growth. Don't be greedy and naive in thinking that the bigger the business you start, the bigger and easier the profits will be.

[Fara Chan]

Most of us hope to have large initial capital to start a business, but we have to understand that if we are new and starting a business then the best thing is to start with small capital, if we already have experience and business prospects are very promising then we can get capital large ones by borrowing or creating shares so that it can be easier to convince investors.

Indeed, there is no harm in starting a business with small capital as long as the business can run quite well, because there are many businesses that fail to develop with small capital after running for several months. Every business will definitely have competition so business owners must also research this while keeping their business running well, meaning that support with large capital will actually help a business to develop more quickly if the business owner has better knowledge about marketing.

Capital loans to run a business are good, but this also does not guarantee that a business can immediately progress even though the owner already has a lot of experience in the business field. Because directly he has to comply with the loan rules which basically must always be repaid every month so that the business owner must be able to stimulate better sales every month because he has been pressured by the capital loan by continuing to fight market conditions which often change uncertainly.

[Dickiy]

Most of us hope to have large initial capital to start a business, but we have to understand that if we are new and starting a business then the best thing is to start with small capital, if we already have experience and business prospects are very promising then we can get capital large ones by borrowing or creating shares so that it can be easier to convince investors.

Indeed, there is no harm in starting a business with small capital as long as the business can run quite well, because there are many businesses that fail to develop with small capital after running for several months. Every business will definitely have competition so business owners must also research this while keeping their business running well, meaning that support with large capital will actually help a business to develop more quickly if the business owner has better knowledge about marketing.

And most importantly I think that no matter how big your business is and no matter how small your business is it will not succeed if you do not have the knowledge to manage it at all, so that means that the role of good and correct management is very important here, none other than this knowledge is only so that your business runs smoothly and in accordance with your future targets. Of course, it is not uncommon for us to see that many businesses collapse halfway, or that means they fail during the process, honestly I will not overemphasize that the point of error is in your small capital, but back again do you have enough knowledge and knowledge to manage it? In addition, as you said business competition today is getting tougher, many competitors are superior to the breakthroughs they have, so if you do not have any preparation or even basic planning then I think you will only waste time and money.

Capital loans to run a business are good, but this also does not guarantee that a business can immediately progress even though the owner already has a lot of experience in the business field. Because directly he has to comply with the loan rules which basically must always be repaid every month so that the business owner must be able to stimulate better sales every month because he has been pressured by the capital loan by continuing to fight market conditions which often change uncertainly.

That's right, in terms of capital, it won't be too difficult now because there are many agencies that provide loans or you can borrow from several banks. Of course, this can't guarantee whether you will be successful in business by bringing that big capital or vice versa, no one knows. Therefore, as I said above, the problem of capital may not be too fully influential on business development, unless you have extensive knowledge related to the field you are going to run and that is management. So the point is if you have enough knowledge and extensive knowledge then whatever capital you bring I think it will be able to run well because you already know how to manage it.

[batang_bitcoin]

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

I am starting to see people in almost everywhere feeling that it's no use or they're wasting time if they'll just keeping it without earning from it. And thanks to those motivational and financial gurus who have been saying about "let your money work for you" thing.
I guess that really had contributed a lot to the decisions of many these days. We're not financially really good but we're realizing how tough life is and that's making us to do things that seems to be right in terms of handling finances.

[Inwestour]

If you have a business idea that has the potential to grow in a year or two, you should go for it. You have $15k saving, take a bank loan of $5k (bank loan go hand in hand with the business) and starts the business. This way, you will fully concentrate on your business and might end up securing more investments from the business community.

Other options are not viable, in my opinion. You have to work for, you don't know how long, to generate that extra $5k to start a business, and in the meanwhile, someone else might have started working on your idea (or a similar idea). You could potentially lose a chance to make millions. So, get a bank loan and start your business right away.

Any loan at the very beginning can greatly affect you emotionally when you have to face difficulties that always happen unexpectedly. Therefore, I believe that it would be reasonable to start with those funds that are available. You may have to somehow adjust your plans, save somewhere, but start without a loan and start now.

There may be an option to borrow the missing amount from your parents or friends for a short period in order to repay them with the first profit. I always believe that we should strive to minimize risks, whether it is in business, investing or anything else, because sometimes unforeseen circumstances can arise that can cause a lot of problems, and often these are financial needs.

[macson]

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.

the situation you describe never ends the same for everyone, there are those who have a stable mentality in business, there are those who are just trying to become businesspeople and there are those who think that business is a quick thing to make money, for me personally business is very complex, even though if i have $20k, it's not easy to use it wisely, especially now that the economy is difficult and most people are holding onto their money.  If i were in your friend's position, i would "save" the money first while observing economic developments in the surrounding area or world, because there are many things that influence people's purchasing power, however, if people's purchasing power is weak then the investment you make will be difficult to generate profits.

[Mauser]

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.

In case you are working to open your dream business and the 20,000 USD is mandatory, then I would definitely keep saving. Why risk your business to fail at the start, because you couldn't wait another few month? Assuming that you put in a lot of work to do the necessary research and that there is no time issue that requires you to act today, I don't see any issue saving a little longer. The only issue would be if you need to act today. For example, you need to the 20k USD for a franchise license and you have the perfect location that could be taken by someone else if you don't buy it today. In such a scenario I would ask my friends and family to lend me the remaining money. If 10 people give you 500 USD each than it's already enough. And if you tell your family and friends about your dream business they are going to help. Paying that money back after a year or two should be no issue with a successful business. Good luck on your business and I hope everything works out.

[BigBos]

Maybe we should make the difference clear from this point, in you Invested then you have just automatically safe up, but what makes it a savings is the kind of what you have invested, you cannot be dealing with altcoins and keep accumulating them for an investment and expect all things to be equal, the way we take risk also should be considered if truly they are worth going for, our investment will never be a waste only when we made the right decision, every other things comes after the risk taken for an investment.

The problem is that when we start investing, we must realize that it is not for a short time because investment is definitely a longer term goal than we imagine so when you have money and the goal is to do business, it cannot be used as a tool for investment before you start doing business. If you are investing then your goal in doing business must be changed to become an investor because in the end this will affect your goals when investing.
Indeed, saving money in investment will be very good especially if the investment we do is something that is very feasible like bitcoin but it takes a long time and effort can not just save today and take it tomorrow with profit because the concept investment is not like that.

[Asuspawer09]

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.

In my opinion, its better to start a smaller business, since I see a lot of businesses fail so it doesnt matter in my opinion how much your capital is you could still fail what ever capital you going to use, it is just a matter of how your going to execute it etc. So probably better to start at somehow most small capital like only 1k$ capital try a small business if it is really going to work, for sure it is not something like a big business probably going to be an online product thing only, or just a clothing brand.

What I mean is its not that easy to start a business there are also luck involved, so start at a very small one so that if you fail you could easily recover from it, then if you get lucky that business is going to be be big no matter what if the consumer like your product. So no need to save or invest you could always start at small capital, just do not gamble everything always have something on your investment and saving incase you fail you can easily recover from it.

[Smartvirus]

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?
-snip-

If you have a business idea that has the potential to grow in a year or two, you should go for it. You have $15k saving, take a bank loan of $5k (bank loan go hand in hand with the business) and starts the business. This way, you will fully concentrate on your business and might end up securing more investments from the business community.

I never thought of taking loans to be a possible solution as in OP but, I do think it could help in cases where you’re almost 99% certain of sales and consistent returns on your investment.
I’ve had someone try out a business with over $20k of loaned money and have been able to repay that loan in less than 10years but the trick was, this individual ram a franchise and had the company aid in ensuring he fully separated his needs from the company’s capital and a greater percentage of the generated profit was reinvested in the business as well as a periodic payment of the loaned amount.

Hence, if the business idea is one that is sure not to fail, taking of loan isn’t that bad and you can get partnership and sponsors to scale you through the time you would have needed to wait on generating funds.

[sulendra12]

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.

That's the risk of having a business. It still has the same risk with $20k, $15k etc. The only thing that matters is you and your friend management skill doing the business. I'd prefer the 1st one, although it's not something that you want to for the first time but it's better to grow from small business until you can develop more. It will still have potential of falling unlike the 2nd option where you just save and save without any potential income.

[justdimin]

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.

Lack of confidence is not good. In all that we do, we should always be confident that we can do it. So, what if we will fall? It's normal especially if we are only a beginner. Some task are known to be risky, so before we do it, it's also better to prepare and equipped our selves with knowledge first. If it involves money, it can help us to lose less. To work part-time is not a bad idea. Apart from gaining an experience, it can give us more flexibility to do other things which can be more important.

But it's easy to recalculate the balance versus risk

We can see the balance but you mean, it's easy to calculate the possible profits that we can get? This is wrong. We shouldn't count the chicken if the eggs are not hatched yet.

[bitgolden]

Most of us hope to have large initial capital to start a business, but we have to understand that if we are new and starting a business then the best thing is to start with small capital, if we already have experience and business prospects are very promising then we can get capital large ones by borrowing or creating shares so that it can be easier to convince investors.

Indeed, there is no harm in starting a business with small capital as long as the business can run quite well, because there are many businesses that fail to develop with small capital after running for several months. Every business will definitely have competition so business owners must also research this while keeping their business running well, meaning that support with large capital will actually help a business to develop more quickly if the business owner has better knowledge about marketing.

Capital loans to run a business are good, but this also does not guarantee that a business can immediately progress even though the owner already has a lot of experience in the business field. Because directly he has to comply with the loan rules which basically must always be repaid every month so that the business owner must be able to stimulate better sales every month because he has been pressured by the capital loan by continuing to fight market conditions which often change uncertainly.

I would guess even if you fail, you just spend a small amount and learned something. No matter how badly you fail, you learn something so that means next time you do something you are going to be able to say that you did better than you expected. That's an important thing and should not be all that weird.

I personally believe that the best thing to do would be making sure that you are doing better than you possibly expect, and it means that you are going to end up with a return that would be great. I understand you can't always have some small capital, but anytime you have it, you could try a business and each time you fail you learn something and you won't repeat that again in the future, that's a good thing to improve.

[Yamifoud]

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

Make a plan better and ensure have enough capital to start, not just only we have the minimum amount. Don't rush mate, better to set it aside and add more. The other option may be to start a business that only requires small capital but is profitable. Don't think about failure when doing business but instead, make a plan to become successful because the moment that you think negatively, that will also lead to uncertainties and easily give up when difficulties come.

Failing is not normal if we really are doing and planning it well. Of course, there is dedication in both parties and optimism.