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

[kro55]

Option number 2 is actually also risky because of inflation. That is when the $15,000 is saved for a long period of time and we try to earn income until we have an additional $5,000 to cover the shortfall so that the amount becomes $20k. then I don't think this is true. Because when we have managed to collect $20k then it could be that at that time to start a business it won't be enough with just $20k because of the decline in the value of the currency or because of inflation which makes everything rise drastically. So if you start a business with $20k now, it's not certain that next year $20k will be enough to start the same business.

So using the $15k to invest in a smaller business would probably be much better. Everything is risky but behind the risk there is always the potential for profit.

But do you think inflation could increase so quickly that his $20k would instantly lose value? If he can work hard for 1 year to earn an extra 5 thousand dollars, do you think inflation within 1 year will cause the value of 20 thousand dollars to decrease significantly?

$15k is too little to start a business because you not only use it to open the business but also need to have calculations such as capital reserves to maintain the business as well as additional expenses. For me, starting a business with only 15k USD is really risky, we will even lose money quickly before thinking about profits.

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[lixer]

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 totally depends on the situation and the condition of your friend at the moment. If he is doing okay, has a job that covers almost all the expenses he has, and can do a bit of saving every month, I would obviously suggest that he waits until he has the complete budget to start his dream business because he probably has been planning it for quite some time and when you do something that you are interested in, you put in all your efforts to make it successful.

However, if he is having difficulties with his income and wants to do something of his own as soon as possible, maybe he should go with option one where he would start a smaller business until he earns enough to start his dream business but that would obviously take more time, and it also depends if he has enough confidence that he can actually do something that will earn him money and won't waste his savings on it without getting anything.

[YUriy1991]

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?

The question is, doesn't a business that requires $20,000 in capital also have a chance of failure? because in my opinion all businesses have the same chance of loss and profit, so it's not just businesses with smaller capital that will have the opportunity to lose.
If you don't feel comfortable choosing the first option then the second option should be the one you choose because forcing you to keep starting a smaller business but you know you have a chance of losing will probably lead you to regret, whereas if you force yourself to stay with a $20,000 business but borrowing the shortfall is not recommended. because you will be under pressure to make profits quickly so you can immediately pay off your debts

Agree. For example, if we try to relate it to market conditions that still have the potential to decline/correct. Personally, in this case, I just choose the second option because the financial losses that might occur during trading will be real if you cannot control your emotions and usually there is something called an argument that should have been on this item first, not that. .. and others, blah, blah, blah.. But, I also try to have a net profit at the end of all this and go back into the market to buy BTC if the timing is right.

[slapper]

~snip~

Getting some partnership just to patch up to those amount that you are lacking wont really be that a bad idea if you are really that in a hurry on building or launching up such business on which you could really be possibly be able to get some possible partners in business but it would really be entirely be depending on the business idea since not all would really be that just simply agreeing on funding up some business or having partnerships on something which turns out to be that not that in demand or the interest is really that low. Investors or business partners wont really be that too dumb not to make out some studies first before putting up their money into some business with along with other co-business or investors and on the other hand on which there are people who dont really like on making partnerships or corporations but rather they would really be that preferring on being sole proprietors rather than on having multiple-owners on which i could say that it do really give out some headaches on some matters and this is what i could say basing up with real experience. This is why it would really be that always important that you should really know on how to make yourself that handle when it comes to this aspect and never ever make yourself do make out rush decisions because we know that capital or
money isnt something that easy to provide. Basing up on the situation above then its better to avoid loan or borrowing money and if partnership isnt your genre then better to save up and wait for the right time.

The partnership may fill financial shortages, but it's complicated.

Investors are strategists, analysts, and skeptics. Market research is their deepest plunge to ensure their money will grow, not wither and perish. Sole proprietorship gives us complete authority and decision-making power, but does it insulate us from partnership wisdom?

Your stories vividly depict corporate struggles. Capital must be used properly, cautiously, and at the correct time. The right time? When does the market ripen or when does preparation meet opportunity?

[tjtonmoy]

~snip

When you treat small and big things the same way, you can achieve success in both of them. But if you treat one with less concentration and other with higher concentration, the ones that you pay more attention will be more successful. So when you want to build things up from the ground, and do it little by little, you must focus on both of them with same kind of importance.
As I said on my previous reply, it is not bad to start small but the goal you have in mind will always be prioritise. So when starting small prioritise it the same way you would have done with your main goal. And that's the key to the success.

[JunaidAzizi]

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.

Well, starting a business is very hard and requires a lot of funds, but in your case, your business needs $20k and you have only 15k arrangements. So let's see my opinion. When you keep your $15k fund in your wallet and wait for another coming fund to add them and start a business, It's a totally flop idea and you would lose all your money because you have no idea how businessmen man do business. The businessman did not keep their money in their wallet but rather īnvest it and earned profits, in another case when you keep your money may be an emergency will out and you need that money and all the investment will gone so it better from being wasted your invest it, to that time it will give their more profits then, laying down in the banks acvounts.

[salad daging]

The business doesn't have to set a round capital of $20K, it can also be smaller than that, even from $5K to $10K, you can start it. Why do you have to set capital that can be said to be large, I have no other choice but to run the business with minimal capital and Even so, what are our skills in marketing the business we are running? Do we understand the business we are running? If someone wants to start a business, they definitely already know what the profits from their business will be.

The second option is to save $15K, actually it depends on you, whether you want to be more economical and have more capital by working first, but people who are determined will definitely do something with whatever capital they have, but the risk issue is definitely yours, but they will think about management. .

[Fortify]

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's an incomplete and poorly thought out equation. Either the start up capital required is 20k or it can be trialed with a lower amount. If you need a license that costs $15k for example and then $5k to build a website, you simply would not be able to launch it without the remaining amount anyway. If you can partially launch the project, taking a few steps towards the end goal you're trying to achieve, it could be good to get started straight away. You'll often find that businesses take a year or two to start developing anyway, so it's better to put roots down earlier. You may also find that spending the $15k gives you a good idea of profitability which might save the remaining 5k input from being wasted or give you an idea of the return it will actually make if invested later.

[bayu7adi]

having passive income is awesome but don't forget getting one is rather difficult, even those bluechip stocks aren't a guarantee that it will turns out as you expected instead it might be decreasing in term of value therefore lowering your capital.
I personally always try to find passive income but man, the only passive income thats worth it is when you have at least more than $100k invested and then we're talking, less than that basically you're just wasting your time and money.
nowadays big capital comes with many advantage that smaller capitals don't have.

Many still believe that the wealthy can easily profit due to their financial advantage, while the poor face difficulty ascending to wealth due to limited resources. I disagree with this notion, and I'd like to explain that money isn't everything.

The most crucial factor indeed is passive income, but to reach that point, one must possess an extraordinary mindset capable of managing any amount of money to ensure continuous growth. The world's richest individuals may indeed have better privileges, but they can still find the best path to grow $100 into a larger sum over time.

Before becoming obsessed with substantial capital, it's advisable to upgrade our thinking abilities in expanding money into more. And, of course, not through gambling.

[eightdots]

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.

You can try to find a loan. If you do not have enough capital for the business you want to do, do not risk your capital by doing another business. Wait a little longer if necessary, but do the work you want to do. But as I said at the beginning, if you believe that your business will generate income, you can try to take out a loan.

As you make profits from your business, you can pay off your debts and accumulate capital again. I think the most important decision to be made here is whether you will be happy if you choose to do a job that you have enough capital for instead of the job you want to do.

[carlfebz2]

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.

You can try to find a loan. If you do not have enough capital for the business you want to do, do not risk your capital by doing another business. Wait a little longer if necessary, but do the work you want to do. But as I said at the beginning, if you believe that your business will generate income, you can try to take out a loan.

As you make profits from your business, you can pay off your debts and accumulate capital again. I think the most important decision to be made here is whether you will be happy if you choose to do a job that you have enough capital for instead of the job you want to do.

I would take this advise on which it would really be that good on taking up such decision on which getting a loan would be your nearest option unless if you could borrow from your family or friends but in todays
standard which interest is much more lesser or smaller in banks than with your relatives. lol.  So we would really be that taking up that loan option as long we can really be that approved on the bank on which approal nowadays is really that tough in the ass on which it is really that something that cant really be that attained by anyone. Never ever make yourself do risks out with other investment or business
on which you hadnt planned nor preferred because tendency of failure is high.

Instead on making yourself that being rush but since you dont have any options then this would be your likely be the option to be taken which is to take some loan then proceed with your plans.
Just make it sure that you would really be able to repay those loans in time so that you wont really be that experiencing any headaches later on. Just dont make yourself
on making rush decisions and think off carefully because if you dont then for sure you would really be experiencing mistakes and errors.

[Dzwaafu11]

The business doesn't have to set a round capital of $20K, it can also be smaller than that, even from $5K to $10K, you can start it. Why do you have to set capital that can be said to be large, I have no other choice but to run the business with minimal capital and Even so, what are our skills in marketing the business we are running? Do we understand the business we are running? If someone wants to start a business, they definitely already know what the profits from their business will be.

Agreed, starting up with a small amount of capital doesn’t mean you won’t get a large profit from the business. With time and patience, you will get your profits. Understanding where you are putting your money is also very important because that will help you generate money from such businesses. Being able to identify the risks that will make you lose a large amount of money, take reasonable risks, and do other things that will prevent and help you make money from such businesses is also very important to know.

However, that is what affects some people now, as they don’t bother to know how risky a business is. In business, we do something called a location survey. People need to do a survey before starting up a business. This means you should choose a good location where you believe your product will be sold. People will buy what you are selling. You can't just wake up a day and decide to do business without doing some studies. This kind of thing makes some people regret their move, and it’s very important to know before we get into a business.

[romero121]

The business doesn't have to set a round capital of $20K, it can also be smaller than that, even from $5K to $10K, you can start it. Why do you have to set capital that can be said to be large, I have no other choice but to run the business with minimal capital and Even so, what are our skills in marketing the business we are running? Do we understand the business we are running? If someone wants to start a business, they definitely already know what the profits from their business will be.

Agreed, starting up with a small amount of capital doesn’t mean you won’t get a large profit from the business. With time and patience, you will get your profits. Understanding where you are putting your money is also very important because that will help you generate money from such businesses. Being able to identify the risks that will make you lose a large amount of money, take reasonable risks, and do other things that will prevent and help you make money from such businesses is also very important to know.

However, that is what affects some people now, as they don’t bother to know how risky a business is. In business, we do something called a location survey. People need to do a survey before starting up a business. This means you should choose a good location where you believe your product will be sold. People will buy what you are selling. You can't just wake up a day and decide to do business without doing some studies. This kind of thing makes some people regret their move, and it’s very important to know before we get into a business.

Starting the business with the already saved amount seems to be the better choice than waiting for the other $5000 to be earned/saved. Another thing when starting a small business or big business we should have the positive thoughts. Op had mentioned the smallest business to be started with $15000 have got the possibility of failing. With this mentality one should not approach a business. Our focus needs to be on, how to make it work better and generate profit.

As said more analysis is a must. In the past people used to grow gradually and in the present era the competence is high and the expectations have peaked. It is a must to go on the right track and study the market well. This will ease the process and keep us on the safer side.

[BitcoinTurk]

While both of your proposals make good sense and are actually good ideas, I'd go for the second one in this context. Starting a business by accumulating debt to make up for the missing amount needed to launch the business is never a good idea, specially since we are talking about a start up business wherein the earnings and growth potential is still unknown. Now you may argue that we can predict it based on research and asssessment but that will be another risk that will be on top of accumulating debt. Instead of having to rely on debt for the missing amount, why not find someone that will be willing to invest on the target business? With this option we wouldn't have to owe someone anything to launch the business but instead have an investor.

While of course this is just my opinion, I'd love to hear your take on this.

Of course, establishing a new enterprise or a new business is never guaranteed to make a profit and for this reason the realization of this business or enterprise with debt carries risks. However, the thing I want to point out here is that if this new business model has a high customer potential and a high probability of making profits this option can also be a good option. Risk is always present for a business or a new enterprise and in some cases it can dominate even for a business model where we analyze the return guarantee causing the result to be disappointing.

In addition to the suggestion of completing the missing amount with debt, if there is a different investment option for the planned enterprise or business model and this option provides a good earning potential, of course it can be aimed to complete this amount by making a profit by investing instead of borrowing.

I would like to give an example for the scenario of completing the missing amount by borrowing. For example, let's assume that as a result of detailed research we come to the conclusion that a new business model will definitely generate profits. Of course, there is always a risk that this analysis will be wrong but let's assume that there is an almost negligible chance that this business will fail. I think that when there is such a possibility a risk can be taken and this initiative or business can be put into operation immediately by completing the missing amount with debt.

[BigBos]

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.

You can try to find a loan. If you do not have enough capital for the business you want to do, do not risk your capital by doing another business. Wait a little longer if necessary, but do the work you want to do. But as I said at the beginning, if you believe that your business will generate income, you can try to take out a loan.

As you make profits from your business, you can pay off your debts and accumulate capital again. I think the most important decision to be made here is whether you will be happy if you choose to do a job that you have enough capital for instead of the job you want to do.

Yes, that's right, anyway there is nothing wrong with borrowing as long as it is for good things, by borrowing this, the lack of capital can be fulfilled but make sure the business that is run will generate profits for yourself and to pay off the debt that was borrowed for the initial capital earlier. it's okay to open a business with modest capital but in my opinion it is less effective there will be a phase of ups and downs of profit, at this time of course it must be prepared if you experience a business that is less than optimal in profit. Will you choose to stop running it? it depends on your own thoughts, but in my opinion don't stop but try again by understanding the mistakes that have occurred, well here of course you need more funds to start again.

At first glance it may not seem good but what's wrong with trying again because every satisfactory result is a complicated process, so in my opinion borrowing more funds is not wrong to do what you have started don't stop halfway.

[Uruhara]

Option number 2 is actually also risky because of inflation. That is when the $15,000 is saved for a long period of time and we try to earn income until we have an additional $5,000 to cover the shortfall so that the amount becomes $20k. then I don't think this is true. Because when we have managed to collect $20k then it could be that at that time to start a business it won't be enough with just $20k because of the decline in the value of the currency or because of inflation which makes everything rise drastically. So if you start a business with $20k now, it's not certain that next year $20k will be enough to start the same business.

So using the $15k to invest in a smaller business would probably be much better. Everything is risky but behind the risk there is always the potential for profit.

But do you think inflation could increase so quickly that his $20k would instantly lose value? If he can work hard for 1 year to earn an extra 5 thousand dollars, do you think inflation within 1 year will cause the value of 20 thousand dollars to decrease significantly?

$15k is too little to start a business because you not only use it to open the business but also need to have calculations such as capital reserves to maintain the business as well as additional expenses. For me, starting a business with only 15k USD is really risky, we will even lose money quickly before thinking about profits.

If you look at the acceleration of price increases due to high inflation last year and this year, in a period of one year I think the price of goods has increased by more than 20% in one year. Even fuel oil in the last year in my country has increased by more than 30%. Public transportation costs have increased by around 40-50% in approximately one year. And considering all these increases, it is very likely that the costs of building a business will also increase within one year. If last year building a business required 20k, maybe one year later building a business would require around 22k or more. But this is just an overview of my area. Maybe your area will be different. Because economic stability in each country and in each region is always different.

If I live in an area with better economic stability then of course it is better to save the 15k and work again to collect the remaining 5k which is the best choice. Because as you said, starting a business requires thinking about spare money. And in my country 15k to 20k is very big. So it might be enough to open a medium-sized cafe or restaurant. Because the rental cost in my city is only around $1700USD per year to rent a place that is strategic enough to open a small cafe/restaurant that is large enough to accommodate around 70 customers.

[danherbias07]

$5,000 remaining is not that far anymore, I won't risk it with something else if I am near the capital that is needed to start my business. I'd rather do other work and try to reach that number. I don't think it will take a year to receive that much in a decent job.
A rushed decision would just make things worse and it mostly ends up bad so it's better to just have patience and wait for the completion of the capital. Who knows, while you are in the process of completing the required amount you might think of some new good ideas for your business. I mean, the excitement could make us think better while our adrenaline is pumped up.

[barisbilgili]

$5,000 remaining is not that far anymore, I won't risk it with something else if I am near the capital that is needed to start my business. I'd rather do other work and try to reach that number. I don't think it will take a year to receive that much in a decent job.
A rushed decision would just make things worse and it mostly ends up bad so it's better to just have patience and wait for the completion of the capital. Who knows, while you are in the process of completing the required amount you might think of some new good ideas for your business. I mean, the excitement could make us think better while our adrenaline is pumped up.

Choosing to wait and do other work so that I have enough capital to build a dream business I think is a good choice and if we force ourselves to build a business with less capital it will make the business we are going to build not be able to run well so it cannot develop and so on. What's worse is that we have to close it because of the lack of capital we have.

When making decisions, it would be better for us not to do it in a hurry because this will have a bad impact on the choices we make. Yes, you are right, in the process of collecting capital to be able to meet the capital needs that we need, of course we can think of new ideas, of course this will be even more interesting.

[abel1337]

$5,000 remaining is not that far anymore, I won't risk it with something else if I am near the capital that is needed to start my business. I'd rather do other work and try to reach that number. I don't think it will take a year to receive that much in a decent job.
A rushed decision would just make things worse and it mostly ends up bad so it's better to just have patience and wait for the completion of the capital. Who knows, while you are in the process of completing the required amount you might think of some new good ideas for your business. I mean, the excitement could make us think better while our adrenaline is pumped up.

That's true. If he choose to risk the $15k that he has right now, if he somehow failed to grow it to his target capital that he really want, I think it would be hard for him to comeback. There might be a chance of him being disappointed and not continue the original plan that he have. The $5k he needed to materialize his dream business, it would be better to just go all in and accumulate those $5k rather than try to invest it on small businesses that you are uncertain rushed decisions.

[Marvell1]

$5,000 remaining is not that far anymore, I won't risk it with something else if I am near the capital that is needed to start my business. I'd rather do other work and try to reach that number. I don't think it will take a year to receive that much in a decent job.
A rushed decision would just make things worse and it mostly ends up bad so it's better to just have patience and wait for the completion of the capital. Who knows, while you are in the process of completing the required amount you might think of some new good ideas for your business. I mean, the excitement could make us think better while our adrenaline is pumped up.

That's true. If he choose to risk the $15k that he has right now, if he somehow failed to grow it to his target capital that he really want, I think it would be hard for him to comeback. There might be a chance of him being disappointed and not continue the original plan that he have. The $5k he needed to materialize his dream business, it would be better to just go all in and accumulate those $5k rather than try to invest it on small businesses that you are uncertain rushed decisions.

I don't see a huge difference when comparing $15k to $20k to start a business. But if he has a perfect plan with his 20 thousand dollars, then there is no reason to risk it now. I agree with you two, OP should continue to be patient and achieve his original goal instead of having to change plans in doubt and uncertainty. He was able to save $15k and only has $5k left to accomplish his goal, so there's no reason it can't be done. Making $5k will be much easier than making $15k, so this is not the time for you to ruin your plans, OP.