What business to start with £250k?
#1
What business to start with £250k?
Hi guys,
I post regularly on this forum but have used a new identity for this question for security reasons, I hope you don't mind.
I have some investments/savings that are worth £250k. I'd like to start a business with this money by cashing them in. I am an educated professional with a very good salary, so it needs to make a decent return but it doesn't have to be immediate.
My job though well paid is beginning to make me feel claustrophobic and hence a change might be whats needed.
My wife has just had a baby and has taken a year off work. She also has a highly paid job but very long stressful hours. A business that could be run by her from home would mean she doesn't have to go back to work and can spend more time with the baby. I could help out with 'out of office' bits of the operation whilst still retaining my job until we are sure it was working and then could join fulltime.
I have the ability to bring down my job hours to 3.5 days a week, though this will lose me about 35ish% of my salary.
I am also lucky enough to have a very small mortage so that makes things easier. If needed I could put in more than £250k but that would obviously mean remortgaging.
So, the question is if you had £250k+ to invest, a very capable wife at your disposal and the ability to free up 1.5 days a week what would you do?
I post regularly on this forum but have used a new identity for this question for security reasons, I hope you don't mind.
I have some investments/savings that are worth £250k. I'd like to start a business with this money by cashing them in. I am an educated professional with a very good salary, so it needs to make a decent return but it doesn't have to be immediate.
My job though well paid is beginning to make me feel claustrophobic and hence a change might be whats needed.
My wife has just had a baby and has taken a year off work. She also has a highly paid job but very long stressful hours. A business that could be run by her from home would mean she doesn't have to go back to work and can spend more time with the baby. I could help out with 'out of office' bits of the operation whilst still retaining my job until we are sure it was working and then could join fulltime.
I have the ability to bring down my job hours to 3.5 days a week, though this will lose me about 35ish% of my salary.
I am also lucky enough to have a very small mortage so that makes things easier. If needed I could put in more than £250k but that would obviously mean remortgaging.
So, the question is if you had £250k+ to invest, a very capable wife at your disposal and the ability to free up 1.5 days a week what would you do?
#2
Why would you ask a bunch of debt ridden geeks who struggle to run 10k cars and still live at home with mummy.
Clearly any business you run, would need to be inline with your skill set.
id
Clearly any business you run, would need to be inline with your skill set.
id
#3
I'd suggest you invest it safely in other places and not a business.
If you can't think if anything yourself or you aren't passionate or desire to own a business that you are going to care about, or be driven by then you'll probably fail.
And quite frankly if I had £250 to spend (assuming you have also have quite a bit more in your property with small mortgage) I'd be semi-retiring to Aus/NZ/Canada/South France.
If you can't think if anything yourself or you aren't passionate or desire to own a business that you are going to care about, or be driven by then you'll probably fail.
And quite frankly if I had £250 to spend (assuming you have also have quite a bit more in your property with small mortgage) I'd be semi-retiring to Aus/NZ/Canada/South France.
#4
What's you background? Computers, Law, Accounting, Marketing???
250k is £625/month interest in a decent and safe savings account. That's your baseline to compare against.
250k is £625/month interest in a decent and safe savings account. That's your baseline to compare against.
#6
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Why not try a franchise. NEC franchise exhibition is very good.
http://franinfo.co.uk/exhi_detail.ph...xhibitionId=37
From what you say you may be better off with the backing of an established company behind you.
Chip
http://franinfo.co.uk/exhi_detail.ph...xhibitionId=37
From what you say you may be better off with the backing of an established company behind you.
Chip
#7
I don't want a business that is in line with my background as thats what I've been trying to get away from. Tbh I've racked my brains over the years to see if there was an avenue there but haven't come up with anything.
I can't tell you what that background is as it may reveal my identity and I'd really like to stay anon.
Kiwi, I'm into lots of things ie cars, gadgets, music, property,travel. I could make a business work because I give 100%. I haven't come up with anything myself yet and thought there might be a few frustrated entrepeneurs here with some general ideas. Don't misinterpret my lack of ideas so far as me not being entrepeneurial, I feel its in me somewhere!
I'm far too young to semi retire. Some of the money was inherited some earned by my wife , I would feel guilty just retiring on it. I need to make it really grow so I can continue to look at myself in the mirror and feel I've done right by my wife and son.
James, thats a good point but its not fun. I need some fun/adventure.
What are Hi Tech Forensics?
Chip, I've always been sceptical of franchises, maybe wrongly so. Anyone here got personal experiences of franchises?
I can't tell you what that background is as it may reveal my identity and I'd really like to stay anon.
Kiwi, I'm into lots of things ie cars, gadgets, music, property,travel. I could make a business work because I give 100%. I haven't come up with anything myself yet and thought there might be a few frustrated entrepeneurs here with some general ideas. Don't misinterpret my lack of ideas so far as me not being entrepeneurial, I feel its in me somewhere!
I'm far too young to semi retire. Some of the money was inherited some earned by my wife , I would feel guilty just retiring on it. I need to make it really grow so I can continue to look at myself in the mirror and feel I've done right by my wife and son.
James, thats a good point but its not fun. I need some fun/adventure.
What are Hi Tech Forensics?
Chip, I've always been sceptical of franchises, maybe wrongly so. Anyone here got personal experiences of franchises?
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#8
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Why not go along and take a look. No harm in looking.
Many businessess are franchises these days. Most McD's, KFC ,courier comps etc are usually franchises
Many businessess are franchises these days. Most McD's, KFC ,courier comps etc are usually franchises
#10
Some ideas off the top of my head
1) Gardening - Something nice about spending all your life out in the Garden. Wife can do accounts and take calls and you could probably just work the summer months
2) Hi-speed Taxi firm. I live in Aylesbury and if the Taxis were Imprezas I'd pay a premium over the ****e vehicles they have here. Hands up any Impreza owners would want to get paid for driving their car?
3) Organic fruit and veg distribution. Take out the supermarket middle man, approach farms direct and distribute local produce to the local area.
4) Property Management. Sounds boring, but you have the cash to start doing this well.
5) Pay it forward web site. Web site where you swap services/favours. Plumpers, electricians, etc are well expensive these days. The web site will allow people to trade favours based on their skills. Example - I mend your washing machine (plumber), if you do my tax return (accountant). I think this would be a great idea.
6) Paypal investment company. Lots of people have money sat in paypal accounts because it costs money to turn it back in to cash. Instead they can paypal you and you invest the money on their behalf (and many others) and pay back a return whilst they're not using the money. Don't do this if you're not financially astute.
7) Run a Scoobynet Investment club. Lots of high net worth individuals here.
1) Gardening - Something nice about spending all your life out in the Garden. Wife can do accounts and take calls and you could probably just work the summer months
2) Hi-speed Taxi firm. I live in Aylesbury and if the Taxis were Imprezas I'd pay a premium over the ****e vehicles they have here. Hands up any Impreza owners would want to get paid for driving their car?
3) Organic fruit and veg distribution. Take out the supermarket middle man, approach farms direct and distribute local produce to the local area.
4) Property Management. Sounds boring, but you have the cash to start doing this well.
5) Pay it forward web site. Web site where you swap services/favours. Plumpers, electricians, etc are well expensive these days. The web site will allow people to trade favours based on their skills. Example - I mend your washing machine (plumber), if you do my tax return (accountant). I think this would be a great idea.
6) Paypal investment company. Lots of people have money sat in paypal accounts because it costs money to turn it back in to cash. Instead they can paypal you and you invest the money on their behalf (and many others) and pay back a return whilst they're not using the money. Don't do this if you're not financially astute.
7) Run a Scoobynet Investment club. Lots of high net worth individuals here.
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Originally Posted by James Neill
Some ideas off the top of my head
5) Pay it forward web site. Web site where you swap services/favours. Plumpers, electricians, etc are well expensive these days.
5) Pay it forward web site. Web site where you swap services/favours. Plumpers, electricians, etc are well expensive these days.
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Investing in a debt collection, or bailif firm could well be a good move. Ever increasing numbers going bankrupt - with numbers sure to rise (possibly significantly) over the next few years, as the debt bubble bursts!
The German economy looks like its finally about to take off, so property in Germany could be a good investment, as it hasnt boomed like in most other Western countries.
I keep reading that art and antiques are likely to become increasing seen as investments in future, so some fairly high value stuff could potentially increase a fair bit.
The German economy looks like its finally about to take off, so property in Germany could be a good investment, as it hasnt boomed like in most other Western countries.
I keep reading that art and antiques are likely to become increasing seen as investments in future, so some fairly high value stuff could potentially increase a fair bit.
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so you want to have a business that will earn you good money, in a field that is interesting and not your usual mundane career type thing, you want to work from home and..err is that all?
I reckon you could do all the above except actually earn any decent money. If you find the golden answer to how to invest a chunk of money in a business, give us a shout?
I reckon you could do all the above except actually earn any decent money. If you find the golden answer to how to invest a chunk of money in a business, give us a shout?
#22
Chip, yes I will look into it. I've just found out a distant relative owns 7 outlets of a certain franchise, I'll ask him for a heads up.
James, some interesting ideas there, especially the job swap one. I'd thought about some similar sorts of things including a car swap type site ie I swap my porsche ( I don't have one) for your aston martin for a weekend.
I also thought about a high net worth website, ie a chatroom for high earners where they could discuss everything from cars to holidays to wines to hifi etc. Revenue would obviously be advertising derived. I also have an idea for another web orientated business but I won't disclose that here as that may well really be a goer.
Pete, I have already started looking into German property. I'm off to Berlin in the very near future. But there are problems there, ie population predicted to drop, low property ownership, strong rights for tenants etc.
B9GLY, that will be the 'last resort'. I've a little experience in property ( commercial and residential)
Ted, my career is not mundane by any stretch of the imagination, I just fancy a bit of a change. There are some silver if not golden answers out there, I know people who have found them.
As for brothels, if they weren't illegal I would open one. Sex always sells.
James, some interesting ideas there, especially the job swap one. I'd thought about some similar sorts of things including a car swap type site ie I swap my porsche ( I don't have one) for your aston martin for a weekend.
I also thought about a high net worth website, ie a chatroom for high earners where they could discuss everything from cars to holidays to wines to hifi etc. Revenue would obviously be advertising derived. I also have an idea for another web orientated business but I won't disclose that here as that may well really be a goer.
Pete, I have already started looking into German property. I'm off to Berlin in the very near future. But there are problems there, ie population predicted to drop, low property ownership, strong rights for tenants etc.
B9GLY, that will be the 'last resort'. I've a little experience in property ( commercial and residential)
Ted, my career is not mundane by any stretch of the imagination, I just fancy a bit of a change. There are some silver if not golden answers out there, I know people who have found them.
As for brothels, if they weren't illegal I would open one. Sex always sells.
#23
Originally Posted by babyboy
I also thought about a high net worth website, ie a chatroom for high earners where they could discuss everything from cars to holidays to wines to hifi etc. Revenue would obviously be advertising derived.
#24
Originally Posted by KiwiGTI
#25
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One of the first things you should consider is your 'asset allocation'.
Effectively this is assessing your financial situation and the allocating your assets (you are privilaged to have some) accordingly.
Typically Financial protection is capital to cover six months earnings should you need it. Security is 12-24 months earnings.
Once you have put aside that capital which will be in your security assets then you can look at what you can afford to invest. Most professional investors would recommend splitting your investment assets into "Buy and hold" which is a long term stocks and bonds; and "Momentum" which is short term trading or business investments.
Once you have been through this process you may have a lot less than £250k to put into a business.
One thing question that is on my mind is why you feel the need to invest this in a business. Lots of fun, working from home businesses require little capital.
It is possible - I personally left my nice, well paid corporate job to do my own thing. I work three days a week, have a huge amount of fun and make at least as much money as I did before, indeed I will shortly start to make a lot more.
Without knowing your skillset or expertise it is hard to advise you - however I am with some of the other posters in that if you can't think of it then you won't be passionate enough for it!
One final thought - there is a hotel being built in London that is looking for investors. You can lease a room for 999 years and the return is between 12-18% with the first two years returns guaranteed. With your money you could buy two rooms.
Rannoch
Effectively this is assessing your financial situation and the allocating your assets (you are privilaged to have some) accordingly.
Typically Financial protection is capital to cover six months earnings should you need it. Security is 12-24 months earnings.
Once you have put aside that capital which will be in your security assets then you can look at what you can afford to invest. Most professional investors would recommend splitting your investment assets into "Buy and hold" which is a long term stocks and bonds; and "Momentum" which is short term trading or business investments.
Once you have been through this process you may have a lot less than £250k to put into a business.
One thing question that is on my mind is why you feel the need to invest this in a business. Lots of fun, working from home businesses require little capital.
It is possible - I personally left my nice, well paid corporate job to do my own thing. I work three days a week, have a huge amount of fun and make at least as much money as I did before, indeed I will shortly start to make a lot more.
Without knowing your skillset or expertise it is hard to advise you - however I am with some of the other posters in that if you can't think of it then you won't be passionate enough for it!
One final thought - there is a hotel being built in London that is looking for investors. You can lease a room for 999 years and the return is between 12-18% with the first two years returns guaranteed. With your money you could buy two rooms.
Rannoch
#26
Originally Posted by babyboy
Sex always sells.
You'd need to come up with a USP - there's far too many ordinary **** websites out there - So I'm told .
I'm sure I could come up wth a USP - for the right price - How about you send me £200k and I'll get my thinking cap on .
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I could make a business work because I give 100%.
Passion and commitment aren't nearly enough - and are certainly no guarantee of sucess.
I agree with the others - if you're not passionate enough about anything, or prepared to exploit your current skills set, then avoid the small business route - it's way too risky.
#28
Originally Posted by babyboy
Yeah something like that. I was sure things like that already existed as its hardly a cure for cancer type idea. That particular site though is ****e, just look at the number of members. Its lazy and no effort has been made on it to bring in traffic or to get people hooked. I could do that 10 times better, don't know if it would make any money, but I could do it much better.
But you don't need £250k to do that, you could almost do it for free with just the hosting costs.
Last edited by KiwiGTI; 31 July 2006 at 09:01 AM.
#30
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what about a small fishery where people pre book so theoretically you dont even need to be there. Have a well stocked pool/pit/lake charge about £8 per rod (seems to be a going rate) depending on number of pegs on the fishery you are looking at a nice little earner (especially if it is open 365 days) you could even employ a semi retired keeper, pay them a small wage and free fishing they would probably be happy with that. Depenind on what land is available you could start expanding with a few years by having log cabins built. It is quite a popular thing these days.