Decide your business.

Society Business and Career
1

If you were given £50,000 and asked to start up a business of choice. What kind of a business would you set up?

Lets see how entrepreneurial you are :cb:

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Re: Decide your business.

Here's my take. I would start up a recruitment business. Following would be the dynamics:

  • Location: Would pay rented room space in admin centers ( where they have common administrative and office space and meeting room + bigger stationary like printers , fax machines etc ) Monthly rent should cost me about £300 per month.
    Location Cost for a year: £3600

  • Create a small CRM database , will cost £200

  • Hire a consultant : £25000 annual salary

  • Phone / other misc costs per month £300 per month . Total cost = £3600

  • Get a website for £100 plus a minimal service charge that is added in the misc cost above.

  • Job posting and advertisement budget: £4000 yearly packages on various websites + free sources

-------------------------------------------- Total cost: £36500

Operation and balance sheet:
Client relationship management per month = 18 meetings per consultant ( two in this case, myself and the hired person)
Jobs accepted = Minimum 15 per month
Job completion cycle= one and a half month.

Main area of operation Finance and Law
Fees target per month: £5000 per month per consultant

Yearly profit expected : £120,000 * Two consultants . On the safer side , say a minimum of £100,000 + £10K from original investment if not used.
Break even should occur at 4-6 months time.

Total cost of job postings on

3

Re: Decide your business.

Most colossal businesses of today were started without a budget or a plan. They were based on ideas everything else came after proof of concept that is when the model started working.
If Bill Gates, Steve Jobs, Jeff Bezos waited to have a plan and needed money instead of following their whims and passions then there would be no Microsoft , Apple, Amazon.
This is also true of many companies which are in business for hundreds of years they were founded on the passion of their founders.
Moral of this lecture:
Follow you passion everything else will fall in place naturally.

4

Re: Decide your business.

Am in a dilemma. If I agree with the above post, does that make me a fool?

Good thread, OP.

5

Re: Decide your business.

but mirch je, not everyone starts a business with the aim of making it a multimillion dollar revenue enterprise. small businesses are the majority of businesses, and are often started with the idea of having a regular reasonably predictable income stream. and this does need a budget and viable cashflow arrangements.

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Re: Decide your business.

My comments in CAPS below. PS. I need a consultant to show me how to embed comments within original text in a clearly identifiable manner.

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Re: Decide your business.

i'm not at all business-inclined, but if i had to pick something it would have to be easy, steady and high margin. maybe a marijuana mart or a drive-thru casino.

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Re: Decide your business.

Question one: recruitment consultants have a short lifespan .. unless they are brilliant. In this case I am talking about mid experience level consultants. I would go for bonus based benefit rather then health schemes. Bigger companies have bigger benefits . A start up can best offer bonus on targets achieved.

Question two: because when we get hired we know we are expected to generate 3 times our salary! This is a well performing consultant and it is easily achievable in the areas of expertise I chose. One deal a month should very easily get them 5-6K fees but its real hard work to close a deal.

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Re: Decide your business.

Yes , but passion comes first, I am dealing with a friend who came from Pakistan , started a couple of businesses with a plan and they all failed now he has ulcer ,high blood pressure etc because all his hard earned money and savings are gone. He did not have the passion for the businesses he started. He started those businesses for the sake of generating a revenue stream.

I will be interested in partnership.

Yes.

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Re: Decide your business.

Antiques? People pay craploads for bespoke or unique items. My clientele would be the mega rich.

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Re: Decide your business.

Don't have any business acuperson. But if I have 75000 pounds handed to me, I would like to set up a low cost mutual fund.

Will borrow liberally from OP. Will hire an office manager with experience in small mutual fund shop for 35000 pounds. Will pay myself 20000 pounds.

Salary 55000 pounds

Office rent 5000 pounds
Telephone and misc: 5000 pounds
Web site set up and maintenance 2000
Office supplies 5000
Miscellaneous and petty cash 3000

Total expenses 75000

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Re: Decide your business.

Business objective - set up low cost mutual fund as alternative to high cost active managed funds and mkt cap weighted index funds that inherently buy high.

Baseline for fee: 0.4 pct charged by Research affiliates for their etf based on fundamental indexing.
Since etf have commission to buy and sell, add 0.05 pct

So fee charged- 0.45 pct

Year 1: 15 million assets
Fee 67500

So amount at the end of year 1 equals 67500

Year 2 expense increase to 78000
Assets 20 million
Fees 90000
Cash at end 67500 - 78000 +90000 = 1500

Year 3 expenses 82000
Assets 25 mill
Fees 112500
Cash at end 1500 -82000 +112500 = 28500

This is a brutal business. I give up.

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Re: Decide your business.

Southie , good plan , its competitive , is it?

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Re: Decide your business.

Yes. But lots of hard work. Will take 5 yrs at least to get some real benefits

15

Re: Decide your business.

I’ll open a call center in Islamabad =)

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Re: Decide your business.

Uncle bhut paisay hai apke pass

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Re: Decide your business.

I would open a small restaurant which is going to offer traditional Pakistani and Indian cuisine

Just Takeaway and Delivery

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Re: Decide your business.

Nahin bhai. The 75000 pounds is what OP is giving each of us to start a business. The deadline for submitting a plan is end of business today.

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Re: Decide your business.

Uncle I have already too many deadlines else I can come up with my business plan

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Re: Decide your business.

I see you already submitted one - the takeout restaurant. OP will be sending you the check today. Use the money wisely. (Don't spend it all on photos).

Good luck with the other deadlines.