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Must invest own money leveraging is a bad idea is investing.
If you are sure that you can work on it then you borrow money if you are not so sure with the area than use your own money of course dont invest all. If you put your leg down to water so use the one leg and keep the other dry.
NO, firstly you have to make your own money from your parent's side or friend investment or it is good if you earn your own money to invest to start your new business
Actually it depends on the project but in business, no risk no reward. Even the wealthiest in the world still owe the banks. So if i have the opportunity to get a loan and invest on my business, i will do. But first, will carry out thorough planifications and marketing research.
AoA
The scope of your question is too wide to answer as financing largely depends upon the demographics, kind of business, prudential regulations, Interest rates, Opportunity Costs and estimated IRR (Internal Rate of Return).
First thing you need to know is if you are using ur own money and the loan are not two different things as you are also responsible for paying it back. Now hypothetically if you require financing for your business which exceeds your cash in hand then you can opt for the mix of financial support from the bank and your resources in hand but if your business startup cost does not exceed your cash/capital then you should use it first to establish your business and then at the expansion stage of your business you can avail some credit line support from the banks as running finance at lower rates. Using your own money at the start will result in no interest costs and your profit will be all yours and later you can avail financing facilities from then banks. But if you get the amount at the beginning of the business then you need to pay interest charges in addition to the principal amount back to the bank which is an extra burden specially for the start ups when you need to offer your products and services at lower prices as compared with your competitors.
Best Regards
