I'm a young graduate living with my elder brother. I want to start a business with my $5000 savings, but I'm afraid of what will happen if I lose the money because that is all I have left. What is some advice for me?

Context of Question
Please advise me because the only thing that will make me happy in life is owning my own business.
Answer

If you don't think you can afford to lose the money, then don't risk it. I think it is perfectly rational to be scared of losing your money. Doing anything risky -- and business is risky -- with 'scared money' is going to make the problem worse. 

As an example, I can think of a couple of clients just starting up. They asked us for a website solution. We spent our time researching the solution and offer to do the work for them. We tried to be as helpful as we can as well as being honest as we can. They felt we were the right team but they chose another team purely because of lower cost. They appreciated our time and disappeared. They came back to us months later after having lost money for a website the other team has built. They wanted us to fix their website or replace it altogether. Such a waste. 

Your reasons to risk your money must be stronger than your fear of losing it. Otherwise, that extra pressure makes you choose worse decisions if losing your money is your bigger concern. If this is the state you are in -- your choice of wording your questions seems to indicate that this is the state you are in -- maybe you have valid reasons to be scared. I suggest then to wait for a better time or position to start your business.

Do you have a different answer that might help the questioner? How would you answer this question?


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