There are some who have re-mortgaged their houses and piled all of their assets into their business to establish the start-up capital needed to get established. Some we have even seen forgo paying themselves adequate wages in order to pursue their dream.

While this commitment to purpose could be seen as admirable, before putting all your eggs in one basket it’s worth thinking about your comfort level with these types of risks.

There are a variety of ways to fund your start-up capital. Some may be lucky enough to secure bank loans, some may borrow from family or friends or even try a bit of crowd funding or applying for a grant.

It is a common concept to use the equity in your home, or perhaps an amount you had set aside for your house or family.

Whichever path you take, it’s important to remember your comfort level and try and stick to it.  

Some may sell their home and use the proceeds to fund their business. While this may work out, this may feel too risky for you to consider. For most people, their home is their most important financial asset.

Borrowing against your home may be less risky, or as mentioned earlier, while securing a loan from a bank would be great, it’s not always the easiest option to achieve. Borrowing from friends/family can also work, but it also depends on how comfortable you are risking all of Nanna’s hard earned cash!

We are strong supporters of new business ventures and while they do carry a risk there can be great outcomes. All of these options can be considered based on your individual circumstances and comfort level.

Ultimately, we recommend talking to us before making any decisions. There may be ways to start small which would require less capital and allow you somewhere to rest your head at night.