Im going to be getting a modest amount of money in the next couple of months…sum of about $30K - $35K.
Any ideas on how to maximize it?
My dream has been to open up a private boutique offering some very unique clothes and services to discriminating clients.
I just want to know if this is the right time to do this? Should I wait? Is there a better opportunity out there I should be looking at?
Re: Financial Advice
^nope it's not the right time, give it to me and i will look after it for you.....:@:
My dream has been to open up a private boutique offering some very unique clothes and services to discriminating clients.
*unique clothes and services to discriminating clients.
*
huh? discriminating ka kya matlab?
(if you are starting new business - it's risky in this economy)...
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^ By discriminating I meant someone who knows what they want and are looking for.
Starting a new business is bad right now, isnt it? Its just something Ive always wanted to do. Is there a way to take a calculated risk or minimize it?
What else can I do with that money? Dont want to hold onto it because Ill spend it!!!!
^nope it's not the right time, give it to me and i will look after it for you.....:@:
LOL. Im sure you will...
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well, not all businesses are doing that bad. You must know your market and concentrate on advertising the right client. All of this takes money. You make money - after you shell out some in ads etc. If you market it right, then you win!
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PSquared, remember the money you borrowed from me last year 
???
Acha, now is the time for you to go see a financial planner. Perhaps in your bank. There are different options available such as IRAs, mutual funds, bonds, etc.
Or you could invest in property, not in the US…maybe Dubai 
I don’t know but a friend just bought a house there and she is very excited about the prospects. She lives here in the US.
Home based businesses are OK even in this ecomony. You could start off small and see how it goes.
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Till the time is right give it to me ,I will save it for you and if you will ask for it I will not give it to you because if I will give it to you , you will spend it anyway.
I was thinking of property too for a bit but in the US it seems like everyone who has a home is trying to get out of it and no one is buying either. Who knows if it will get any better? Ive never even been to Dubai but a friend of mine also bought a home there too. She is planning on moving there when her children are older. WHat about Pakistan?
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LOL @ Mirch! That is the kind of bank I need!!!!!
I was thinking of property too for a bit but in the US it seems like everyone who has a home is trying to get out of it and no one is buying either. Who knows if it will get any better? Ive never even been to Dubai but a friend of mine also bought a home there too. She is planning on moving there when her children are older. WHat about Pakistan?
Don't even think about being an absentee landlord in Pakistan. It never works out, even the close relatives have been known to turn into Qabza Mafia. If you are not there or you parents , siblings are not there to take care of that property it is a bad , bad idea.
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Don't do property anywhere in the world. If boutique is your goal then do a test-run on it.
YOU need to know the market, since you are starting this business. Order couple of clothes and start marketing it locally to see what happens.
Invest over 90% of your money in GIC or something (which locks your money for a certain period of time and give you a return by investing. Almost guruanteed income).
Start small and see if this is something what you can do. Jumping both feet in (especially in this market) is not a good idea.
Im going to be getting a modest amount of money in the next couple of months...sum of about $30K - $35K.
Any ideas on how to maximize it?
My dream has been to open up a private boutique offering some very unique clothes and services to discriminating clients.
I just want to know if this is the right time to do this? Should I wait? Is there a better opportunity out there I should be looking at?
**
Firstoff, You have a choice to make...
Choice a: Take advantage of the roller coaster ride that stock market is.
Choice b: Invest it soundly in a business.
Choice a: If you decide to go with stock market. Read the book, Benjamin Graham - The Intelligent Investor. Pay special attention to chapter 1, 7, 21 and 22. What the book teaches you is different approaches to investment and the psychology of an investor. I cannot stress how important is to have a strategy and a sound plan before you invest.
You have two approaches i.e.
The cigarette bud approach: you're walking on the street, you see a cigarette on the street which has a few puff left, you pick it up and take a few puffs and then throw it back on the street. Yes, investing for short-term is that dirty.
In-it for the long run: you plan things and invest in a business you understand. you remain in contact with the management and BODs. Hence keeping an eye on every aspect of the business. Think of coca-cola... or chew-gum business, do you understand their business? its pretty simple, you buy a can of coke, you drink it and thats it. If you understand this, then this is the business you should invest in for long-term.
NOTE: If you're up for the challenge and can work 18hrs a day, I would encourage you to think about FOREX. Having 35k and some FOREX experience, you can double your money with US dollars in your hands.
Choice b: Starting a business isn't that difficult to be honest with you. Its just people who want to start a business rarely do their homework. Basically, you've have to look into a business model, business plan, market analysis, marketing plan, accounting regulations, taxation, information structuring, your niches, cost; not just rent and labor but cost related to your product, your profit margin, break even, alternative revenue streams. Above all, brand.ing; the most important public aspect of a business.
You also have to answer question like:
Q: How much do you plan to pay yourself?
A: Yes, in a business you set a minimum that you should be getting and the rest can be saved. Remember 30%-60% of the profits are re-invested in the business.
Q: How can you reduce the costs?
A: Yes there are a million ways to reduce your business overhead. Outsourcing being one of them but it comes with a new set of headaches that you have to deal with.
Q: Are there any investors who would chip in?
A: First rule of a business is to start your business with someone else money. Either a silent partner or a bank. No matter how much money you have on hand, you always try to get more and diversify. If your business doesn't work out, well you're losing less since you have 10 other people who invested in you, so you suffer less overall.
Q: Where would be the best location?
Q: In which city would the banks be willing to finance?
Q: Are there any government grants or subsidies that you qualify for?
Q: Last but not the least, your customers. Who will be your customers? and Why would they come to you?
TIP: When I'm researching a business, I usually talk to competitors as a potential investor in their business to know the businesses inside out. 9/10 times they'll tell you everything. And if one of them doesn't the other will.
This is by no means done. You have to discover your business on a paper before you jump into it. You have to lay down a plan which dictates what you'll be doing in the first two years. At no point should you run out of ideas. For example, you can offer services on the side or sell your dresses online but guess what? Now you have to put aside a budget for your online business and that comes with its own set of problems. Its like chess, you can make a move but then you have to deal with a completely different situation then you otherwise would. So before you make a move, you have to plan it down to a nail and atleast a year ahead.
**
^ you definitely have a plan :k:
This is a very helpful tip. I am trying to imagine the scenario. How do you act as the “potential investor”? How do you approach your competitor? I mean - you can approach your competitor only if you know they are interested in investing rt?
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Navaidishere and NJ Masti- thank you!
Im not sure about the stock market - dont have any experience in it so its a bit intimidating. I would like to do one of two things: business or property.
I know the following sounds so funny but it worked for me.
Ive been thinking of doing the business for quite some time now...a few years actually. What I did in the beginning is had my family DHL me a few boxes of clothes. Meaning, I sent them designs and they got them made for me. When I got the parcels, I started to attend these little bazaars that happen all over Chicago close to Eid. I set them up only twice a year and have always made a significant profit from each event Mashallah. Word has gotten out and now Ive got people that come to my home to see the clothes. I dont have the capabilities to do custom orders yet...working on that right now. I make sure to sell an entire shipment before I get another one, that way I can keep track of the money Im making from each order and what kind of clothes are selling. The problem is, I cant grow in my home...running out of space and kind of tired of dragging out suitcases full of clothes out everytime someone comes by...lol.
As for investments...Ive got my own little bit of money that I mentioned above but aside from that Im thinking of getting a business loan as well. My sisters are also interested in working on this with me so this might actually end up being a joint family venture.
Location will be close to a pre-established south asian store. That way I have some sort of foot traffic of the right kind that will wander in inevitably. Ive been scouting out places and I have a general vicinity in mind that I want to be in. There are a lot of south asians there but not many boutiques.
My customers would be primarily south asians...Indian or Pakistani BUT I also want to appeal to non-desies. Ive seen a TON of non-desies interested in buying desi clothes...especially our latest fashions like the coat-style, pants, capris, etc.
Im having trouble coming up with a brand and marketing now...Ive got my homework cut out for me!!!
Im going to be getting a modest amount of money in the next couple of months...sum of about $30K - $35K.
Any ideas on how to maximize it?
My dream has been to open up a private boutique offering some very unique clothes and services to discriminating clients.
I just want to know if this is the right time to do this? Should I wait? Is there a better opportunity out there I should be looking at?
Convert into Euros and keep it till end of next year.
Re: Financial Advice
PS, do the math, how much does it cost to import 1 shipment? How many sets does 1 shipment include, how much does 1 set cost to buy, how much are you selling 1 set for? etc..
If my sister would think of opening up a boutique, I would suggest her go the online route:
1 - you won't have to take a business loan, and don't even think of taking one in this economy.
2 - you save all overhead costs by opening an online business. no rent, tax, utility bills..etc
3 - you write off tax of what you use at home (internet, cellphone, office, etc) dunno how it works in USA but I take it much like Canada
4 - it's MAD CHEAP, $20/month you get your website hosted up there, done deal! (yes you will have to invest in a web designer/programmer which will cost couple hundred to thousand MAX for this kind of store, just outsource to Pakistan :D)
5 - the only BIG issues I see here are the shipping hassles and people wanting to see the quality (which you say you don't like... but maybe setup a small place in garage? :D)
and yes marketing will cost you but in a niche like this, word of mouth is BEST! and from time to time, you can setup a stalls in different bazaars to spread the word (flyers>website>orders> CHA CHING!$!)
so the only costs I see, if you go online route, are marketing and initial website design/programming
and I believe you have MORE than enough to start off with!
**I’m quite sure she has done that otherwise she won’t be making a profit.
**
**These costs are part of business and offering services or having alternative revenue streams can offset these costs. Again, you can always find ways to lower them but you shouldn’t be scared of them. Lets say use energy efficient ways of light or use your community as an umbrella to write off taxes etc etc. **
**You can write off much of the taxes if you open a community based business too. **
**Use a professional commerce CMS [content management system] like Magneto and dreamhost $7/month or $127 per year. And there is nothing out there that beats Magneto. Its free and open-source and you can ask dreamhost to install it for you or I can do it for you. Whats left is uploading images and writing descriptions and tagging them with a price. You can connect it directly with your free accounting software and get your books and taxes streamlined as well, hence eliminating the need for a programmer or designer or an accountant, so no need for $1000 dollar budget or extra budget for an accountant. We are saving money before we even started. Bottomline is always research your alternatives religiously and connect small pieces to build a flawless system. This is information structuring.
TIP: You do not want to get into outsourcing over the internet. Never trust an outsourcing company until and unless you’ve met those people in Pakistan.**
Actually its not an issue, its how you deal with it. Almost every business relies on or is connected to import/export or shipping somehow. Again its smart inventory/warehouse management. Now consider this scenario someone from Norway buys one of your dresses. Where do you ship it from? Pakistan or US? Aren’t you paying twice for shipping? Isn’t that adding more cost to your product? How do you deal with it?
**
Thats a typical mistake dotCOM businesses make and one of the reason why their business model fails too often. A retail foothold is necessary to grow along with smart inventory management.
a. Though word of mouth is great but you need to expand as the word gets out otherwise how do you plan on growing or meeting the demand?
Bottomline: Have a business plan.
b. Do you know an average consumer is still hesitant giving his credit card details online? Now lets narrow it down to desi community… what do you think your odds are of making a sale?
Bottomline: Know thy customers.
c. Enter the online business and you’re competing with other online businesses who have been there before. They have a better domain name and are selling directly from Pakistan/India/Bangladesh so they can cut the cost better then you can from US. And guess what? You’re all selling the same thing but in your case, you’re adding a new dimensions to your business to manage and compete.
Bottomline: Think before thy enters new market.
d. An online business at all times should think of how they will compete with Amazon.com. Why? What if Amazon.com decides to sell dresses online? This may not seems plausible today but what if they do? How do you compete with them? How do you lower the price to the point that you can give them a tough fight? And what if her next door neighbor starts the same business? How are you so different and whats your recipe for success?
Bottomline: Know thy competitor.**
Yes, $127 per year [after taxes] and with coupons you can get 3 domains free for life and $50 off. Still What about brand.ing, online marketing, and SEO? And there are a million other things you need to consider. Devil is always in the detail.
There is no doubt that she has enough to start with but how does she “intelligently” invest to jump start her business?
Though I don’t agree that you should limit yourself to e-business alone. I do agree that if you streamline things, it should be launched before you go retail.
Im going to be getting a modest amount of money in the next couple of months...sum of about $30K - $35K.
Any ideas on how to maximize it?
My dream has been to open up a private boutique offering some very unique clothes and services to discriminating clients.
I just want to know if this is the right time to do this? Should I wait? Is there a better opportunity out there I should be looking at?
PS - I would wait. I would take the money and invest in the stock market or real estate.
With the limitation in credit now you will see a sharp increase in renters. (my predications)
Buy a one bed condo or something near a college/metro area and rent it out. Which could give you a monthly income to support you business.
Boutiques are great but you need clients first. You can easily do that without adding cost to your business from home or private consultations.
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Navaid bhai, thank you for your informative posts! I am learning a lot.. thanks.
btw, my post concerning online business, was just that, for online venture, nothing extra :D
Marketing online these days can be done using many diff methods. SEO, if you learn the ins and outs you can do it yourself... but I guess you will need something professional as this niche requires it.
:D