Selling an asset to afford the needed capital is a desperation act

Alexandoy

VIP Contributor
In our Economics subject in college, I remember our professor saying that capital is the most important element of a start up. The lack of capital is the usual reason for the opening to be postponed or cancelled. It is also a common reason for a start up to not withstand the rigors of operation.

When you are well equipped with the knowledge in business and the only issue for the start up is lack of capital then the best source of money is to sell an asset. A restaurant owners who suffered a terrible loss in his business due to illness had sold his home after a few years for another start up of the same business. He was lucky to succeed again because his capital was more than enough. At least he proved that selling an asset for the capital of a start up is a winner.
 

Mataracy

VIP Contributor
I believe selling an asset to raise capital for a business depend on the individual who does that. Some time if one is very sure that the business about to embark on is viable and lucrative one may do that ; after on he/she may still get money from the business to buy another asset back.
 
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Jasmine

Verified member
Some people consider starting a business by selling your assets instead of taking a bank loan is better. When you sell your assets to build business, and if you lose, you will not have debt a you started with your own money. But when you fund with loan and if you lose, you will have debt to pay.
 
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Sotherefore

VIP Contributor
In our Economics subject in college, I remember our professor saying that capital is the most important element of a start up. The lack of capital is the usual reason for the opening to be postponed or cancelled. It is also a common reason for a start up to not withstand the rigors of operation.

When you are well equipped with the knowledge in business and the only issue for the start up is lack of capital then the best source of money is to sell an asset. A restaurant owners who suffered a terrible loss in his business due to illness had sold his home after a few years for another start up of the same business. He was lucky to succeed again because his capital was more than enough. At least he proved that selling an asset for the capital of a start up is a winner.
For me I consider selling my property or an asset to start up something I am really passionate about than for me to directly apply for a loan from the bank because having a property to sell is enough reason for you to be able to succeed in the business, . this will not put you in a serious debt that may takes ages to pay back.
 
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Good luck

Valued Contributor
It is not a bad idea to sell an asset to raise money for a particular business as long as the business is going to bring a good return at the end.A lot of people sell their properties to do things that is needed to be done.The idea is not bad at all but one needs to be careful when doing such
 
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fmwinneer

New member
it is a good idea if you re going to generate more money that costs more than the asset.
when you have liquisd money you can invest in other things aned then buy again that asset, so basically it is about how good you re going to do with the money that you got with the asset .
 
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Dest01

New member
It is not a bad idea to sell an asset to raise money for a particular business. just make sure that the business is actually profitable
 
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Mika

VIP Contributor
If you have made up your mind to start a business but you do not have funds, you can sell your assets to start a business. There is nothing wrong with this because you are trying to start a business and not gamble your money. By funding your business with the money you made by selling assets, you also don't incur any debt or bank loan.
 
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