Quote:
Originally Posted by squishy
You have sufficient money to start a business. What business would you start, and why?
Please, don't troll. I have searched plenty and haven't really seen a question like this. Thanks in advance.  |
For me, the goal at the end of the day is a reasonable rate of return for the amount of money invested, regardless of the industry or enterprise.
You say you have sufficient money to start a business.
For a Franchise, that means need 250k - 500k on average per location. Some of the better known brands require even more liquidity and a net worth of between $2 mil and $5 mil. A Franchise is ok, but you really need to be able to analyze your costs and read the Franchise Agreement carefully. You may own the business, but the Franchisor owns you (typically). The good news is that a Franchise provides a proven business model, system, and structure. Usually, if you stick to the plan, you can earn a decent living. The bad news is that you have to pay a regular Franchise Fee of 8-12% of your net sales, however it is defined in the Franchise Agreement. If you open one Franchise, I suggest you open at least three or get an area deal with the Franchisor. The first one will take a lot of time, but it's not much more time to do the second or third. If you end up with good locations, you can probably earn at least $250k a year given your prime costs are on target (if it's a restaurant).
If you are opening your own business, you probably need between $100k to $250k. You should be an expert in the field with experience under your belt and obviously have a fully formed business plan and adher to it. Consulting gigs typically require very little start-up money, especially if centered around pushing paper.
Anyway, whatever business you decide, always remember to pay yourself what you think your time is worth. Then whatever money is left over you can consider a return of your investment. You want your money to work for you; you don't want to end up solely working for your money.
Lastly, you should also consider putting your money into a mutual fund or real estate.
So...lots of avenues for your money. Opening and sustaining a business can be stressful and an undue burden on your life especially if you have a family and dependents. Lastly, choose what fits your lifestyle. Do you want to give up a day job with steady pay? A job you can forget about after 5pm? Once you become a business owner it's not as simple.
I've done all of the above. If you ask me now which one I prefer, it is NNN net-leased properties all day long. You make less than operating your own business by far but it's really an arm-chair investment free of headaches/drama/etc.
EDIT:
If you are dead set on opening a business, I suggest using OPM in some form or another. That is what I evolved to. Still need to pay for your time and effort though. But it becomes much easier, since you know, it's OPM. But with OPM, you have to think bigger/etc/etc and a whole host of other responsibilities.