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For fresh graduate with no money in his/her pocket is it better to initiate a small start up by borrowing money or should he/she start a job and start a side business?


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Wilson’s Answer

Hello Faheem, It is nice thought to start a small startup but it depends on how much homework you did since you don't have money in your pocket. Cause it includes investments EMI Material, Machinery’s Etc.
If we barrow Money and start the Business below are some few thinks that you can consider and check first
1.calculate how much you would Require to start a business For E.g. List the Materiel, Machinery, workforce Required to start the start up
2.If you need Materiel and machinery for your business then think where you are going to start the business Either in your apartment or going to lease the building and check which location you are leasing building and check will it be suitable for the startup cause according to it the monthly rental and Deposit amount vary
3.If you are ready to start next Start calculating how much money required to start the Business
4.Think if you can repay the money you have borrowed every month without fail or do your business give you enough backup
Taking all this in consideration I would suggest please join a job where you get standard income and some basic experience until you start business and at the same time by side do the market research and home work to suit your start up
Cause we don’t have enough money to start a business and check trial and error
Thank you
Regards
Wilson

Thanks a lot! Faheem A.

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Kenneth’s Answer

Hello, Faheem. I'm not sure how you were going to borrow money for your business, but it is very difficult to borrow through normal channels, like banks, if your business is not already in operation and showing a profit. Startups can be very risky, so most lenders may not be interested in the initial phase of your business.
I totally agree with the idea of seeking a regular, full-time job first, while saving your money so that you have "seed" money for the new business.
One of my previous employers did exactly that, and he eventually started a successful professional engineering firm as a result.

Make sure you make up a detailed business plan to keep yourself on track. Modify as you learn more through the years.

Good luck!

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Stephanie’s Answer

By starting a full time job, you will obtain some much needed skills and responsibilities that will help you once you do have the money to start your own business. By that time, you may just need a small business loan to help supplement what you've saved. And there are some great small business loans out there once you've gained credit worthiness, etc. by having your own steady income for a sustained period of time.

Hope this helps and all the best in your journey!

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Stephanie’s Answer

By starting a full time job, you will obtain some much needed skills and responsibilities that will help you once you do have the money to start your own business. By that time, you may just need a small business loan to help supplement what you've saved. And there are some great small business loans out there once you've gained credit worthiness, etc. by having your own steady income for a sustained period of time.

Hope this helps and all the best in your journey!

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Alyssa K.’s Answer

Hi Faheem!

I hope all is well. This is totally up to you. Although I think it would be more beneficial
if you start with a job that can help you save up money to start the start-up, it all depends
on what you desire for yourself. Many people have 9-5's and then a side hustle and some
end up turning their side gig into what they do full-time. Take the time to ask yourself what
are your goals and what makes the most sense for you in the long run. Making a pros and
cons list can also be very helpful.

I hope this helps and I wish you well!

Alyssa Cole

Thank you so much! Faheem A.

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Kenneth’s Answer

Hello, Faheem. I'm not sure how you were going to borrow money for your business, but it is very difficult to borrow through normal channels, like banks, if your business is not already in operation and showing a profit. Startups can be very risky, so most lenders may not be interested in the initial phase of your business.
I totally agree with the idea of seeking a regular, full-time job first, while saving your money so that you have "seed" money for the new business.
One of my previous employers did exactly that, and he eventually started a successful professional engineering firm as a result.

Make sure you make up a detailed business plan to keep yourself on track. Modify as you learn more through the years.

Good luck!

Thank you Kenneth! Faheem A.

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