Any smart business advisor will tell you that If possible you never risk your own money to start a business, the truth is most businesses fail and its better to lose someone elses money than your own...
what he says about saving money is laughable ..... many of these immigrants you see that start their own business arent getting bank or family loans , they are working shytty jobs for shytty pay saving every penny possible to start up..... many a fortune was started from money seeded through savings
you dont have any savings when that rainy day hits youre fukkED....you become ill , the economy goes into a downturn and you dont have a safety net to fall back on because you listened to an idiot that said you shouldnt put money away for a rainy day you only have yourself to blame when you lose everything...
I'm gonna expand on this point a bit because I really think some people have to get this concept. I'm gonna go back to the scenario with someone who wants to start a business with $50,000 and show you what happens in the most simple of scenarios.
Great Post to the both of you, daps. Very legit information. One thing in both scenarios that are missing is that you never, ever, ever, ever, ever, ever, ever, walk into a bank with your nuts in your hand. Just like you never go into a car dealership or to buy a house with your nuts in your hand. What I mean by that is, if you want a $50,000 loan from a bank you can do it one of two ways and it does depend on what they loan is for. A. You already have $20,000 and you get the remaining $30,000 from the bank. or B. You have $20,000 and you get the whole $50,000. In scenario A, your business goes belly up, you only owe $30,000 and like
@LV Koopa said you can refinance and spread those payments out (waaay better than $50,000) or B. Your business goes up and you siphon off that $20,000 and manage to get your head above water before the real damage of the debt comes.
If you want a $30,000 car you dont go into the dealer, pay the down payment take whatever apr rate special they have then drive off the lot, atleast pay double the down payment or have some cash to talk them down, or negotiate the price of stickers and plates into the down payment or first couple months payments.
Then as a general rule, you never ever put everything you have on the table. Dame kept saying he'd be broke because he invested all his money---yea he might broke, but he's not investing his food money, bill money, rent money and gas money. No matter what you're doing you should always have adequate savings, which I believe as a general rule of thumb is your rent x 6....
Cash talks, you dont walk in a place with just your nuts. If a dealership has $30,000 in the window walk in with $22,000 and see if your not rollin (that might be a bad deal but it depends on the whip).
Like
@LV Koopa said banks goals arent to bankrupt you so you cant pay, they want their money. If you business goes belly up, and you just walk in with your nuts and say "It failed

" and try to negotiate/renegotiate payments they are going to be like "

sorry" but if you go in and say, I'm prepared to give you $10,000 and I would like to renegotiate the terms of payment, they are likely to accept and renegotiate (this depends if that money would cover any accrued interest- obviously if you walk in with $1000 on a $50,000 loan they arent going to do anything for you), if for some reason they wouldnt accept the hypothetical $10,000 upfront and renegotiate, then you could walk and use that $10,000 to make about 11- 12 payments which generally should be able to hold you down while you generate enough income to support that.....
These are all hypothetical figures, no interest just principle, but yea never walk into a place with just your nuts in your hand and never ever ever, put up literally all of your money.