Tuesday, August 5, 2008

How Could We Start Our Business?

When we would like to start our own business, we need to collect some money as our capital. But it could be an interesting issue because the ways to get the capital are various. Usually, there are two options to get the capital ; first one is by using our saving money/ parents money, second one is by borrow some money from borrowers like bank, friend, etc. However, capital is one of the most important things when we would like to start own business. even though, it;s not 100% guarantee that if we have higher capital means we can achieve higher profits, we must to decide whether borrow some money or not. There are some cases to respond this dilemma situation, first one is if you get your first capital from your parents then you failed to reach "success", there are positive and negative impacts for us. the positive is you will not sued by the borrower because the borrower is your parents and no need to pay interest, but the negative one is you will lost your parents trust. The second one is by borrow some money to the banks or friend to get our capital. there are also two sides, the positive thing is you will not fuss your parents and we can prove that we have the capability and could make our parents proud. In contrast, there are many negative sides by borrow money from outside party. First one is we must to pay interest expense (higher money that we borrow, higher the interest that must we pay), the second one is we must to sacrifice our asset as the guarantee and it will take a high risk. Now, in the conclusion, by considering two options we must to decide the best way to start our business!!

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