This really is advice for anyone thinking of borrowing money and ditching a job to set up a business:
At the end of the day only you know the likely risk involved in you borrowing money for an enterprise. I think if would be fool hardy for any of us to say yeah, sure, borrow 30k and dive right in. We don't know your experience, your past history, your mentor and how closely he/she will work with you, or anything along those lines that would give an indicator as to your potential success.
Personally I like to bootstrap wherever possible, especially in uncharted waters so I would say get a job and learn the ropes while you have all the bases covered.
That way if it doesn't work out for you aren't in a 30k hole.
Also bear in mind that entrepreneurship is a journey of discovery. Very few make it work on their first outings. It is much more common to come away with burnt fingers and some hard won lessons.
If you had had a string of successful businesses in the past and were contemplating going all in then fine as you would have the knowledge to know the risk/reward factors.
However you are not in that position. Basically you don't know what you don't know which is a dangerous spot to be in. We can all get a little carried away when we seen a new shiny thing but you need to stand back and look at this dispassionately. Do the sums and look at the worst case scenario. Your job, if you decide to go ahead, is to reduce the risk on the downside as much as possible.
A lot of people think that Richard Branson is a risk taking, adrenaline junkie, maverick that got lucky a few times and rode off the back of that but in reality every venture he has gone down he has mitigated the risks as much as possible. Hell, with Virgin Airlines he called Boeing and asked them if they had any second-hand 747s for sale. He then did a deal whereby if the enterprise failed he could hand the planes back and walk away.
Bringing things to a smaller scale I have seen umpteen new businesses start up in my small town. People who have taken their passion and their redundancy money, savings or second mortgage and opened a shop in one of the many empty stores that pop up throughout the year. I see them and my hair stands on end and I scream inside NOOOOOO. For I know that they will be bankrupt within 18 months tops.
I've seen restaurants, bars, shops, all crash and burn in the last 5 years and it is nothing to do with the economy, it is just people opening the wrong business in the wrong place. All because they went in with everything but experience.
INTRO Most liked posts in thread: Your introduction to Grant! Also requesting some suggestions related to a new business!
Or is it just because what you want to do it?
The market doesn't care what YOU want to do.
And if you don't care about the market, ultimately it makes a difference between running an entrepreneur business (a productocracy, that's in Unscripted) and a marketing business that is nothing but a grind.
Welcome to the forum.
Also, thank you for taking the time to read what I wrote, and also the welcome. I'm excited to be here and being part of the group!
RazorCut likes this.
Welcome aboard Grant, congrats on your nuptials.
To answer your questions: I wouldn't borrow 30k, I'd go the job route and save up some scratch.
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