Mechanical engineering wanting to leave job
I work as a project engineer in the manufacturing industry. My work place outsources all engineering design but I was always interested in becoming a design engineer.
Is it a good idea to pull out a personal loan to setup a startup? I believe I have enough experience to give me a headstart. I just want some time to setup all the spreadsheets required and dive deeper into the design standards.
Would anyone recommed this step? Thanks
I would hesitate to get personal finance until you can answer: What service will you provide, to who? Why would a customer or business use your services rather than an established firm? What will you charge? How does that compare to other companies? What will be your revenue stream? How long will it take to be cash flow positive? How will you pay back the loan? How long will it take? What will the loan pay for? What insurance and iso standards do you need for the products you are designing? Is personal loan the right choice? If you have a viable business proposition and customers already, a business loan might be better.
I am an engineer and I understand what you mean. The short answer is, please don't take the step (if you do still want, find someone close to you who are on their SECOND startup and grill that person for two hours please). Startup is a daring act and a path of no return. You enter a new realm. It would be like a five year boy goes to a super model and say, "one day I will marry you", and the models says "Cool, would you take care of aging mother too?". If you can not create, excel at your job. You see everything at your work place nice and easy because they already had business - your work place WAS a startup before and it did not fail. If you do startup you will have to recreate the business, which is something you know nothing of. If a chef uses his family savings and opens a restaurant and handle all the risks of a new restaurant, location-decor-hiring-menu, it would be like an engineer trying for a new business. You would say the failure is almost guaranteed the first time, no matter how good the chef is and how hard he tries. If you are not ready yet, prepare . Your personal loan is personal, not business strength. If someone has money, that person will always successfully startup because he can respawn and correct mistakes - but you and most people do not have the money to buy the new spawns. Most people who are talking about startups are people who are too short on cash and STILL want to startup. I hope it helps.
Question asked by
May 11, 2020, 12:47:31 PM