Like lots of people around the world, you’re trying to take your hobby and turn it into a lucrative business proposition. And, like everybody else, you’re only just realizing how much money you require to transform your side-hustle into a legitimate company.
As a result, you might decide to sell your private assets to fund the venture. Sometimes, traditional forms of credit are hard to secure, and they’re not always worth the hassle with high-interest rates.
At least selling your valuables means you’ll get 100% of the sales and not have to worry about paying back the bank. Of course, there are still issues you must consider, such as the following.
Is It Worth The Hassle?
Typically, the average person has two assets – a car and a property. The latter is something we’ll get to after, so let’s focus on your vehicle. It’s in good condition, cost you a lot of money, and is a brand that’s in demand. However, even then, you’re only likely to receive half or one-third of your initial investment as cars don’t retain their value. Considering the average price of a new vehicle is around $30,000, you could get as much as $10,000 to $15,000.
Is that enough or will it only touch the surface?
Are There Lucrative Features You Don’t Know About?
You probably assume that striking gold in the form of oil or gas is a pipedream (excuse the pun). Only the lucky few find it on their land, extract it, and milk it for everything it’s worth until the well dries. In reality, National Public Radio says millions own gas and oil on their land, and it’s not uncommon for the likes of Texas International Oilfield Tools LTD to help you strike it rich. Yet, you can’t do it if you sell up without exploring the idea.
You should always search for telltale signs, such as oil coming to the surface, before signing off on a property sale.
Is It Taxable?
Some assets are taxable, whereas others aren’t eligible to be put on your tax return. Usually, the latter would be welcome, but when you’re raising money, you want as much of it in your pocket as possible. To do this, it could be better if you can class the asset as a business expense. That way, you can reduce the amount of tax you owe further down the line. It’s not easy to understand, which is why the Internal Revenue Service has info on ECIs.
Do You Need It?
In your haste to sell and boost the coffers, you might make a mistake and sell an asset that makes your life easier. A car won’t affect you too much as you could be a two-car household. However, downsizing and moving home is a massive commitment that impacts everything from your children’s education to the family’s safety and security. Therefore, you’ve got to make sure that pushing for corporate funding won’t add upheaval to your routine.
Are you ready to sell assets for the sake of launching a startup?