Should I sell my boat to start a business?

[ryan450r]

Such a tough decision. I don't really want to sell it but I do have a lot of money tied up in it. Or, should I go to the bank with the title and borrow against it?... hrm....

[newfountainguy]

i hate to say it, but sell the boat. Starting a business in dept sucks. if thing go right you'll be cruzin in a 38 lightning in a couple of years.

[Fountain4402]

whats more important? good luck finding a bank to let you borrow against it, a boat isnt really a good investment on their part

[Rookie17]

Best way to start a business is with someone elses money. I'm on my 7th, 8th, and 9th businesses (built from scratch and sold the others, crashed one of them back in the 80's before I learned more).

If you're doing the physical work in the business, go raise seed money with a financial partner equity share of less that 50%. Create a contract where you get to choose if you buy them out at a set term for a percentage of (x) many years net profit (calculated as a split of past net profit performance and future projected net profit performance). The contract should say specifically how future projected net profit performance will be calculated should you choose to exercise your term option.
Spend the money with a good attorney that YOU hired to create those contract(s).

If the business is viable, and if you have what it takes to be successful working for yourself, you'll be able to find the seed money - at least for start up and initial working capital.
Its always nice if you can go back to the same source for growth capital later without giving up any more equity, just as a business finance note.

Start up money is only the beginning. Successful businesses often have growth capital needs beyond their net profit capability to fund that growth.

If you can't find the seed money from elsewhere, I'd think long and hard. If other successful people don't see your start up as a worthwhile enough venture to invest in, maybe they're right and you could take pause to consider their experienced opinion...

I wouldn't sell any assets to start a business. Successful businessmen are capatalists, and selling assets you really want to keep is going backwards.

Just my opinion. Take it for what it's worth. I'm sure there are successful self made men on this board who would disagree with me, but I'd guess the majority would agree with my perspective.

Perhaps the only reason I'd sell my boat if I was into another start up would be because I'd never have time to use it anymore. But I wouldn't do it to raise start up capital.

Like I said, just my opinion. Best of luck with whichever direction you choose.