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What types of businesses can u start w/125K?
- Thread starter Machiavellian Muscle
- Start date
Almost anything.
But you'd be foolish to get into something unless you know it well.
Remember, most businesses fail from under-capitalization: not having enough money. Gives you 2 choices:
Borrow another few hundred thousand (if you can), or try starting something with a budget of about $50K, and keep the extra cash on hand for 'incidentals.. '
But you'd be foolish to get into something unless you know it well.
Remember, most businesses fail from under-capitalization: not having enough money. Gives you 2 choices:
Borrow another few hundred thousand (if you can), or try starting something with a budget of about $50K, and keep the extra cash on hand for 'incidentals.. '
buy a smoothie king franchise
i know i would have already if i had the money laying around. I actually did have that kind of cash laying around until one night i was watching late night info mercials and some guy that was really ripped (kinda looked a whole lot like that guy who is always selling the impact nutrition products) was peddling this stuff called"duraba-bobalin"
he was like... Wow ive gained 70 lbs of lean mass from just looking at this stuff in the vial" no injections, perfectly safe, and legal... and then he was like... wait theres more...
at that point i had to buy their entire stock of it. so i did. thats why i dont have that kind of money laying around right now.
he was like... Wow ive gained 70 lbs of lean mass from just looking at this stuff in the vial" no injections, perfectly safe, and legal... and then he was like... wait theres more...
at that point i had to buy their entire stock of it. so i did. thats why i dont have that kind of money laying around right now.
vinylgroover
New member
If you have $125,000 in cash, buy a couple of properties with it instead of buying business and hold on to whatever job you have at the moment.
Have your money work for you rather than working for your money.
Have your money work for you rather than working for your money.
The best advise was already given. You have to know what you get into. If you are already familiar with it AND LIKE IT. you`ll have alot better chance at making it.
Yeah I was thinking real estate, but prices have gone up so much lately that I think they may be overpriced here in NJ. I work in sales for an IT firm who is going bust so I will be out of work soon b/c they have no money to pay me one all my existing business. So I am looking for a new job, but was thinking I could maybe take this money and somehow work for myself.
Mackavelli said:
If you don't know eral estate well, stay away...unlike the stock market, you can get into negatives on real estae.
investors are not buying RE now...prices have peaked due to the low rates. If you buy now you will almost certianly overpay.
When rates go up a few points, the record home purchases of the past few years will turn into record foreclosures and property will be around ass-cheap. if you bought now you could easily end up upside down on the property.
Mostpeople who get into real estate get about 7% return on their money, when putting in the bank or a fund would get them 6%.
You may want to try work (in the interim) as an independent salesperson. Perhaps you could contact some different firms and see if they will pay you on a commission basis, etc. Might help you stay afloatfor a while, letting your cash stay put.
You could sell for a fwe different origanizations maybe. My Dad does this, he does all right.
What business do you WANT to be in?
Many sales jbos do not allow you the chance to
This is my problem I really don't know what I want to do, but for the past few years I realize that I would like to be my own boss. Just to give you some background info I am 28 yrs old finished my MBA in 2000. Worked in 100% commissioned position since graduating. 2000 earned 50k buiding from nothing, 2001 I earned 250K, 2002 295K. In 2003 the company I work for is aquired by new partners and they create a lot of problems for me and stop paying me on old business and contracts. The company is top heavy on a few accounts and they loose them and now they are bust. So I get screwed last month and they tell me they don't have the cashflow to pay me.
So I figure now may be a good time to start something of my own while I am still young. What is holding me back right? Fear and doubt (because I really need to know what I am getting into inside and out or I will lose my shirt). My condo is paid in full so rent is not a problem. I have my car payment which I could get rid of if times get tight. I also I have custody of my 3 year old daughter b/c my ex-wife ran off and left me to take care of everything. I have her in daycare. Student loans are paid and no debt on credit. Now I figure would be the ideal time. So do I find another job and make someone else rich agian and be stuck in the rat race or do I suffer and suck it up a few years and build a business. I would really like to do the latter, but I don't know anyone who really has done this before and could help mentor me through the process even if for a fee. More importantly I am wondering what type of business I could start in this economy. I was thinking of daycare services but it is really saturated up here but I guess there is always room for a great service provider. That's why I am asking you guys of possibly some type of ideas to help me brainstorm. Damn, I have a lot of thinking to do and I am getting stressed because I don't have the money really flowing in at this point. Learned a valuable lesson in the last month - You really need and I mean NEED mulitple streams of income in this day and age just incase one of those streams drys up....
So I figure now may be a good time to start something of my own while I am still young. What is holding me back right? Fear and doubt (because I really need to know what I am getting into inside and out or I will lose my shirt). My condo is paid in full so rent is not a problem. I have my car payment which I could get rid of if times get tight. I also I have custody of my 3 year old daughter b/c my ex-wife ran off and left me to take care of everything. I have her in daycare. Student loans are paid and no debt on credit. Now I figure would be the ideal time. So do I find another job and make someone else rich agian and be stuck in the rat race or do I suffer and suck it up a few years and build a business. I would really like to do the latter, but I don't know anyone who really has done this before and could help mentor me through the process even if for a fee. More importantly I am wondering what type of business I could start in this economy. I was thinking of daycare services but it is really saturated up here but I guess there is always room for a great service provider. That's why I am asking you guys of possibly some type of ideas to help me brainstorm. Damn, I have a lot of thinking to do and I am getting stressed because I don't have the money really flowing in at this point. Learned a valuable lesson in the last month - You really need and I mean NEED mulitple streams of income in this day and age just incase one of those streams drys up....
Mackavelli said:
Well, do you have a lot of industry contacts?
Are you in a position to do something marketing related? Maybe some type of consulting?
What other skills have you developed beyond sales?
What do you wish you knew more about?
Not to flame but sales is a very cyclical business,and not always one where you learn a lot of higher level skill sets. So what skills do you wish you had?
MattTheSkywalker said:
As far as industry contacts I have a lot. I sell to the Fortune 1000. If I changed into a different field these contacts would be useless unless I could find a synergy between them and my existing line of work.
Could I do consulting - yeah but my income would be sinficantly limited to my hourly rate. I want to start setting up a system in which I can charge more than just my hourly services.
Skills beyond sales - I don't have a trade like a lawyer/doctor/electrician so this is hard to define. Very computer savvy. Self starter-goal orientated. I deal very well under pressure and I am very good at turning a bad situation into a positive or money making situation. I relate to a broad spectrum of people because I can feel just as comfortable talking to a street bum as I would dealing with a CIO of a major organziation. Excellent listerner (you would be suprised how many people are not). Firm grasp of accounting practices and methodolgy.
What do you wish you knew more about? I am researching how to start my own business. How to go about getting small business loans etc.. What steps one must do legally etc.
A skill I wish I had would be to speak another language. I have tried but I have two left feet w/this. Other than languages I feel like I could learn anything.
Mackavelli,
have you considered buying a large residential home subdivided into rental units?
the idea is identical to house flipping except tenets pay the mortgage and any excess income is either reinvested into the home to increase equity or available for your own disposal. All revenues generated from tenet income would be tax free (I think -not sure about American tax law) because the rental property would qualify as your primary residence since you would reside within the home itself.
The larger the home the better because total rental unit income is proportional to the size of rental home. Since you clear total rental income less rental property maintenance costs + taxes + mortgage + the forgone cost of residing within rental home unit yourself, the more rental units contained in the purchased rental property, the more money goes into your back pocket.
High tenancy rates, good tenets and low home maintenance costs would be key to making it work. 2 of those variables can be controlled prior to the purchase of the home and 1 of those variables can be more-or-less controlled after the purchase of the home.
If the majority of tenet income generated is reinvested into the rental home to increase property equity, the less likely fluctuations in the prime rate will effect your annual mortgage payments.
Cons, you surrender the freedom of living in a home all to yourself. Pros, within a few years you can build a significant amount of equity in the home, even when sold at depressed market prices, would still yield an average annual return on investment around 20-35% after 3 years, rough estimate.
This is something im considering myself but have never done it.
But lets ask the pro. Matt? What do you think?
have you considered buying a large residential home subdivided into rental units?
the idea is identical to house flipping except tenets pay the mortgage and any excess income is either reinvested into the home to increase equity or available for your own disposal. All revenues generated from tenet income would be tax free (I think -not sure about American tax law) because the rental property would qualify as your primary residence since you would reside within the home itself.
The larger the home the better because total rental unit income is proportional to the size of rental home. Since you clear total rental income less rental property maintenance costs + taxes + mortgage + the forgone cost of residing within rental home unit yourself, the more rental units contained in the purchased rental property, the more money goes into your back pocket.
High tenancy rates, good tenets and low home maintenance costs would be key to making it work. 2 of those variables can be controlled prior to the purchase of the home and 1 of those variables can be more-or-less controlled after the purchase of the home.
If the majority of tenet income generated is reinvested into the rental home to increase property equity, the less likely fluctuations in the prime rate will effect your annual mortgage payments.
Cons, you surrender the freedom of living in a home all to yourself. Pros, within a few years you can build a significant amount of equity in the home, even when sold at depressed market prices, would still yield an average annual return on investment around 20-35% after 3 years, rough estimate.
This is something im considering myself but have never done it.
But lets ask the pro. Matt? What do you think?
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Matt w/$125K you couldn't do much in terms of buying a large property right? I believe you need to but down a minimum of 25%, so basically up in NJ I could get a 5 unit which is not much. My father invest in realestate but he is a small player. He has about 12 properties ranging from 6 to 2 families. He said it is not a good time for this because properties he bough 7 years ago quadripled in price and now is too high.
Mackavelli said:
Your dad is right. With interest rates being low, prices have shot up. Simply stated, it costs less per month to buy more. This is why prices have gone haywire over the last few years.
If (when) rates go up, prices will go down. You'll see - in the next few years - people who, for example, bought a house for $300K, made payments for 5 years, and want to sell it, but can't get more than $240K. Coupled with is, there will be a lot of foreclosures as people with adjustable rate mortgages start getting clobbered.
Lenders have relaxed underwriting standards as well - people have been able to buy with 10% down or even 5%. Therefore, a lot of people have made bad decisions about buying because money was freely available. Also, have you seen the growth of these mortgage "chop shops"? Look for them to be named in mucho litigation later on....but I digress.
$125K is a large downpayment, but even if it were a great time to buy, you don't make an attractive borrower because you are out of work right now. If you were earning say, $100,000 per year, you could borrow a few hundred thousand and buy additional properties.
when prices come down, you're in a great posstion to invest.
As to buddy28s points, ability to succeed as a landlord has so much to do with the area your property is located in. Will the municipality let you convert a single family to a duplex, etc/. Then there can be construction costs as well. It's a tough business.
Having said that, I would look again at the consulting avenue, as a stopgap measure. Even at $100 per hour (cheap for a consultant) you could be doing $3000 a week gross without killing yourself....at least until you are able to find exactly what you are looking for. And it is an interesting way to meet people.
here is a thought for you over the long term.... try and create a business that does't become the "mackavelli fan club". By that, I mean, there are some individuals who have created a high income business, but it requries them to be there all the time and do mostof the work. Writers and the like are examples of this.
You want to aim for somethign where the work you do can quickly be transferred to someone else, at a lower pay-rate, freeing you up to do other things.
May want to look into marketing....it sounds overly simple but you seem to habe an abaility to recognize potential buyers and sellers. Can you do something creative to get them together?
Mackavelli,
I got the idea from my landlord who owns a couple of large homes which contain 10-12 rental units earning on average 700-800 monthly CAN each. On the larger ones, he says he clears 60 grand annual after maintenance costs and property taxes are paid. Of course, mortgage payments take a chunk, but when your living there it saves you the cost of paying the monthly mortgage while making available an extra income stream which is tax free = more time to start another business. You can do some part time consulting perhaps? and spend the rest of the time putting together a business?
I’m a couple years younger than you with significant less cash, so it’s appealing to me.
I got the idea from my landlord who owns a couple of large homes which contain 10-12 rental units earning on average 700-800 monthly CAN each. On the larger ones, he says he clears 60 grand annual after maintenance costs and property taxes are paid. Of course, mortgage payments take a chunk, but when your living there it saves you the cost of paying the monthly mortgage while making available an extra income stream which is tax free = more time to start another business. You can do some part time consulting perhaps? and spend the rest of the time putting together a business?
I’m a couple years younger than you with significant less cash, so it’s appealing to me.
Matt you seem like you have a lot of knowledge in regards to business. Do you own your own business, if so how did you start out?
buddy28 said:
My Dad has 30+ years experience with ocean shipping, particularly imports from the Far East. Eventually he reached somewhat of a ceiling, as mnay of teh comapnies are Asian owned and a little bit reluctant to promote Americans.
He went to work as a transportation broker - shipping is one of those wacky industries which is so vast that efficiencies are never entirely worked out. Goods come from the Far east by ship, then to a train, then a truck etc. Every time goods are sitting around, someone in the supply chain is losing money.
My dad was able to do pretty well matching shippers with goods because he knew so many people and thereis always something that needs to be moved. Truckers are always looking for more work and they can refer you to other cotnatcs as well.
If you are interestedin this, look into transportation brokers. You don't need an advanced education...you just need to know where something is and who needs to come get it.
Mackavelli said:
I have a day job but I also work for myself.
The fisrt thing I did for myself was write an IT certification guide - a book. I was an IT / network guy in NY in 2000 - it was the tail end of the high pay for IT guys.
After that started to sdry up I did the book.
Shortly after that I met someone who acts as a mentor to me now, who has several successful large businesses.
With his guidance, I did some small time real estate stuff, (still growing) learned about construction, and on the side started writing certification tests for IT people, which proved to be lucrative.
I also did some consulting for schools around here and some private schools. Now I am trying to do some marketing and advertising businesses, in addition to a website that acts as a gateway for services people buy a lot of: life insurance, mortgages, finnacial advice etc.
My approach is pretty simple: what knowledge do I have that people will pay for? How do I get it to them? And - do I know buyers and sellers I can introduce to each other.
actually, I was referring more to family friends you mentioned who were involved in import/export type business who made good money.
I cant specifically recall the thread off hand. But I remember you mentioned 'they (or your family friends) do very well.' Which seems at odds with your dads moderate success you posted in this thread.
I’m in the middle of starting an international trading company so I wanted to ask what product areas your friends dealt with. Mostly just out of curiosity because I’ve already keyed in on a market/product/service combination offer.
I cant specifically recall the thread off hand. But I remember you mentioned 'they (or your family friends) do very well.' Which seems at odds with your dads moderate success you posted in this thread.
I’m in the middle of starting an international trading company so I wanted to ask what product areas your friends dealt with. Mostly just out of curiosity because I’ve already keyed in on a market/product/service combination offer.
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Mackavelli, I don`t know it this is what you`re looking for, but go to the franchise.com sites and they give you hundreds if not thousands of companies to choose from. They have all different types of cost franchises I`m sure from couple thousand to millions. They also walk you through the training in anything you decide to venture into.
I`m sure after looking around at the lists, you`ll get a better idea of what you want. good luck
I`m sure after looking around at the lists, you`ll get a better idea of what you want. good luck
I
Imakarum_Mirabilis
Guest
Being a landlord, among other things, I'd buy another apartment complex with 105k (plus a bank loan for an additional 75k), and invest 20k in breeding stock for exotic reptiles and some space for them.
FatFugitive
New member
DONT GO INTO REAL ESTATE
trust me, theres alot of bullshit involved including tenants!
use that money to buy marijuana hydroponic equipment and go this this site www.overgrow.com and learn how to grow.
I've been growing about 1,200 plants every cycle. I haul in about $280,000 a year in profit.
believe me, theres a lot of money in weed or drugs for that matter.
trust me, theres alot of bullshit involved including tenants!
use that money to buy marijuana hydroponic equipment and go this this site www.overgrow.com and learn how to grow.
I've been growing about 1,200 plants every cycle. I haul in about $280,000 a year in profit.
believe me, theres a lot of money in weed or drugs for that matter.
