How much money would you be willing to spend from your own savings to start a business?
Are you the kind of person who believes in your dream enough to burn through most of your savings on it?
For millionaires, this might not be a big deal, but what about people with a typical 9–5 job? I see how much a solid marketing campaign costs on just one platform (often the monthly expense is equal to at least a full year’s salary).
The day before yesterday, a friend told me he and his wife are closing their restaurant, which they opened just six months ago. They had taken a loan for it, which makes it even worse.
How much of your own financial reserve would you be willing to spend before giving up?
[I think that I would go with $40,000.] 😅🙈
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@listgenius 200 pounds is bearable and totally okay :D but it depends on the way how to use it :D
Around 70,000/- . I boot strapped my podcast.
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@harsh_rawal1 Uff, that's pretty much $. But did you have it from any other previous business?
Currently bootstrapping. MY co-founders and I are investing enough to give us 6-months of runway. After that business has to cashflow.
It's risky, but so is waiting for the "perfect moment." I like to think "what will I regret more?" and in this case, I would regret never going for it.
There is no reward without risk.
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@harleyallaby You need to be the type of person who enjoys risks. Not many "sane" people undergo it :D (I mean this positively) :)
if you believe in the idea , i would suggest to go all in.
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@munmun_desai1 yeah, but it should be done reasonably :D
I could only when I'm convinced that idea have a potential to become something great and also that business got validation from the market. But anyway I won't bet all my financial reserve on this 😅.
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@ivan_apedo Only a fool would bet the whole financial reserve :D
I need to set aside some money for my living expenses and to manage risk—perhaps about a third of my savings.
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@charlene_zh1 That's the reason why I want more money: allocate for living, allocate for fun, allocate for running the business, allocate for risks.
This is a tricky question when I built Spaculus Software what really helped me was learning the difference between spending and investing.. At first every dollar felt like a risk but later I realized it was a signal. the money I put in wasn’t just capital it was proof that I believed before anyone else did. Sometimes that belief costs more than you plan but without it nothing real ever starts..
If I put my 15+ years of experience in just a few lines I would say this: the real cost isn’t the money you spend it’s the comfort you give up. You don’t invest savings you invest your certainty and once that’s gone only belief keeps you moving. That's what i said @busmark_w_nika :-)
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@ravi_mansuriya Wow, I have never looked at these circumstances this way. Thank you for your fresh view :)
I think it depends on how validated the idea is. If I’ve seen real traction or paying users, I’d be okay investing maybe 30–40% of my savings. But if it’s still early and unproven, I’d rather test lean with minimal spend before going all in.