Generate Success

There are many things to be contemplated when considering starting your own business, among the most obvious is how you will fund such a project.

Due to the current financial situation many who have found themselves out of work or on short time and unable to make ends meet are considering working for themselves.

These days many small businesses are started as a hobby or sideline while the owners are employed elsewhere, this gives the owner the opportunity to test the water and decide whether their idea is a viable proposition.

Over the last year we have seen an increase in the number of people who do not have the security of full or part time employment, who have what they think is a viable idea for a new business but are struggling to find finance while they test the water.

With the recent hike in gold prices we have even been asked by some of these budding entrepreneurs ‘Should I sell my gold to finance this business?’

Of course this is a question that only the person asking can answer, but for those with a ‘brilliant idea’ who have no other options we offer the following advice.

While gold has increased in value through the financial crisis companies that buy gold are in business to make a profit too. So do not expect to be offered the retail value of your gold collection or you will be disappointed.

The price that we, the public, pay for a piece of jewellery is probably three times the actual cost of the product itself, so if you paid £300 for a gold ring the real value of that ring is only £100.

Bear in mind also that the scrap value, which is what you are being paid, could be much less than the real cost of the item. This is not a rip off, simply how business works.

Also take into consideration that sentiment counts for nothing when trying to raise money and that wedding ring that your grandmother left you may have high sentimental value to you, but not to the buyer.

While we are on the subject of heirlooms always consider carefully before selling of items of sentimental value, it may come back to haunt you.

In our opinion if you really believe in the business that you want to create and selling your gold is the only way that you can get it off the ground, by all means go for it, but first take into consideration the points made in this post.