Buy a house or a business. Obviously, a house. The assertion is seemingly rational, but he or she may not realize that there are some important considerations that should be taken into account before making such a decision. ‘Buy a house or a business. Obviously, a house. The assertion is seemingly rational, but he or she may not realize that there are some important considerations that should be taken into account before making such a decision. The concept of buying either a house or a business is a rather common one. Many young entrepreneurs find themselves excited when they wake up one morning, and they see that they have enough money to open their own business. They figure that if they have enough capital, they will be able to make the money they need in order to realize their dreams. Unfortunately, most new businesses fail within the first few years. On average, only 25% of new businesses survive five years. Those who survive often do so only because of the personal savings of the owners. If one were to carefully examine the economics of such a decision, he or she would realize that buying a business would be in the best interests of both the statement and his or her family.

The first consideration that the statement should consider is the cost of running the business. After purchasing the business, the owner will have to either pay salaries or hire employees. In both cases, the owner will need to pay taxes and insurance on the employees. The business owner will also incur other costs, such as the cost of keeping the business clean and the equipment up-to-date, as well as the cost of advertising. All of these costs can quickly add up to a considerable sum. If the business were to be located in downtown Seattle, for example, the cost of rent, utilities, and insurance could be very high. The business owner will also need to pay for his or her transportation to and from the business. The costs associated with running the business could easily amount to tens of thousands of dollars per month. Even if it were possible to run a home-based business, the cost of gas, Internet service, telephone, etc. would likely end up being higher than the cost of renting or owning a small office in a downtown area.

The second consideration is what would happen if the business failed. If the owner’s income were to take a severe plunge, he or she would probably have to work a second job to make ends meet. The costs of running a second job, including transportation to and from work, could take a huge bite out of the owner’s income. As a result, the owner would most likely be unable to afford a house, and his or her family would be forced to live in cramped quarters. If the business were successful, the owner would probably be in a much better financial position, and he or she would be able to purchase a small house for the family to live in.

Even if the business were successful, it would still be a huge responsibility. As the owner, one would have to attend to many aspects of the business. If the business were to go out of business, the owner would be responsible for paying all of the debts and taxes. In addition, he or she would have to oversee any lawsuits filed against the business. If the lawsuit were successful, the owner would be required to pay all of the damages. These costs, as well as the costs associated with running the business, could easily deplete the assets that the owner has. If the business were to fail due to the negligence of the owner, he or she would be personally liable for the business’s debts. It is, therefore, highly doubtful that a young entrepreneur would be able to purchase a house and a family at the same time.

The bottom line is that a young entrepreneur should probably not purchase a business or a house. Instead, he or she should save his or her money, and wait until he or she has saved enough money to purchase a house and a family.