Are There Any Disadvantages of Buy Shares Instead of Starting One's Business?

[Cissé]

Starting a business and having a shares in a business both are good ideas but you know I will surely invest in share business when you start your own business along the way you might need some money to maintain it and when there's no money to maintain such a business the business might stop and might not be going well, but when you are in a share business with other people other people may have the money to maintain the business but when the profit is out maybe you can deduct from your own profit and return the money that they used to maintain the business in order to sustain the business and make the business move forward.

 

[Abbeyola]

Lately, my brother has been considering starting up a small scale business related to rendering computer services and cyber cafe. It will cost him around $300 to do this. But there's an ongoing shares that he is willing to buy at this same price. He can only invest in one due to lack of funds.

He asked if there is any disadvantages of buying shares in a company instead of starting a business with the same money. What advise do you have for him in this condition.

Nothing is stopping you from going ahead to buy your shares and still do your business you intend to do. As a matter of fact, you should even be spreading your earning potential in a manner that you don't put all your eggs in one basket. You understand what I mean?

The disadvantages of buying shares, instead of starting your own business is when you don't make your research before buying the shares,and the shares don't appreciate in value,it will be a waste of money and time of investment of the capital.

 

[Tinaconcept]

Buying of shares is very good and important too. But its very good to make sure you are investing in a well established company to avoid you loosing your investment. My friend who bought shares sometime last year is already enjoying his dividend

 

[gbadebo9]

There is a disadvantage in buying share instead of using ur money to established business straight away. The share is unreliable bco if u think share will appreciate it may fall down, it always based on speculation so it will be disastrous to rely on it to get the money for ur business. To be factual share is unrealistic to put mind on.

 

[Nurudeen]

The only disadvantage in buying shares is that the Market is too volatile and you will be at risk of losing your money if you don't have a good strategy on how the market works. Aside this stock trading is very profitable. All you need to make money there is knowledge

 

[Sheun450]

It also means that you don't need to pay back or rely on outside investors or lenders, who could decide to withdraw their support at any time. You will retain full ownership of the business, which in turn means that you will receive ...

 

[KvngMurphy]

Capital losses is one of the disadvantages of buying shares.
Any investment is a gamble. That means you can lose money – even all your money. No matter how safe a stock looks, the price could go backwards and the company could even collapse.

Goodbye dividends is another
Dividends aren’t set in stone. So just because a particular stock has always paid a good dividend, doesn’t mean it always will. Dividends can go down or even be eliminated.

 

[Azhar119]

Benefits of equity share investment are dividend entitlement, capital gains, limited liability, control, claim over income and assets, right shares, bonus shares, liquidity etc. Disadvantages are dividend uncertainty, high risk, fluctuation in market price, limited control, residual claim..

 

[kayode10]

One of the problems of buying a share in company is that you might find it difficult to convert those shares into money whenever you need a quick cash urgently. another problem is that if your dividend is lost is my be very hard to reclaim it even when they are registrar office is nearer to you. another problem is that the company which you guys there she might go extension or file for bankruptcy.

 

[Goodday]

Yes, there are some difference between buying shares of a company and starting your own business on your own. When you buy shares, it only means you are a part owner of the company and you are entitled to some percentage of the profit that would be made. But when you start your own small scale business, you are considered as your own boss and any profit or loss from the business is fully yours.

 

[Good-Person]

Buying shares is always a risky decision. However, whenever it comes to investing money, there is ALWAYS risk involved. When it comes to investing in shares, you must realize that the stcok market can crash and even the most reliable company can go bankrupt. Are you sure that computer service and cyber cafe business will take just around $300 to start?

 

[Mawome]

I don't really think that there is any disadvantage on that, if you buy a share from a reputable company, that you know very well, there is nothing like disadvantage bro cos they will surely pay cos if they don't, then you Sue them, but if you're buying any stock from an unknown company your name is sorry.

 

[Hills]

The business may be poorly located or badly managed, with low staff morale.On the downside, buying a business is often more costly than starting from scratch. However, it's often easier to get financing to buy an existing business than to start a new one

 

[Justin]

If I want to start a business, I need at least $1000. However, I can start investing on shares in the primary market even with $10. Therefore, I believe investing on share market is better

 

[Mildred254]

It is better to start a business than to buy shares. One needs knowledge in shares before deciding to invest in them. And this will take time, patience and risk to see returns if you decide to resell your shares.

On the other hand, starting a small business and having friends promote it so as to grow your market will help the business to be stable in a very short period of time. I would prefer starting a business than buying shares.

 

[Setfragil]

There is no disadvantage in buying shares and stock instead of starting a business but it requires a lot of experience and understanding before one venture into it. Some businesses requires little to no experience to start just your capital but investing in shares needs good knowledge of it.

 

[Abbeyola]

Lately, my brother has been considering starting up a small scale business related to rendering computer services and cyber cafe. It will cost him around $300 to do this. But there's an ongoing shares that he is willing to buy at this same price. He can only invest in one due to lack of funds.

He asked if there is any disadvantages of buying shares in a company instead of starting a business with the same money. What advise do you have for him in this condition.

Life is full of risks, you can invest in shares and either gain or loose, you can as well start up a business organization and succeed or the other way round.

 

[Setho]

The truth in this world and in the journey to financial freedom is that not everybody is made to be successful in the business area. I have made more money from holding bitcoin than I would have made if I started a business. I am sure because am not a kind of business owner like that.

 

[Billy]

Both have a considerable amount of risk. Therefore, when getting into shares or starting a business, you should know that it can go either way.....up or down. Personally, I prefer business, because, unlike shares, you can make good plans and determine the direction it takes.

 

[Josemendez]

One of the advantage one can easily say is that one stands the chance of earning passively . So for me , it is better to have offline business while investing also in stock .