New business for £40k?

[The Byre]

I have a friend who, for personal reasons, finds himself without an income for the foreseeable future. He is 58 and has about 40k saved up to start a business. He lives in West Hampstead in NW London in a small flat. He is single. He ran a successful clothing store in the 80s, after which he was very ill, but he is totally healthy today. Using the flat as a business location would be a contravention of his lease agreement. His only interests are elite model railways and making music with modular analogue synthesizers.

Problem - he has no idea what sort of company he could start or get involved in. His two hobbies hardly bode well for starting a business in those two fields, as they are extremely niche and already overcrowded with tiny companies that themselves cannot make a real living.

He has further money to live on for a year or maybe two, so now would be a good time to start something. Any bright ideas?

 

[NickGrogan]

What skills does he have?

Can he sell?
Can he write?
Can he design?

There are plenty of opportunities, but without knowing his skillset it's hard to point in any direction.

 

[The Byre]

Yes, no, no.

 

[NickGrogan]

We're always interested in talking to potential agents for B2B energy.

Being based in West Hampstead, there are enough businesses within a couple of miles of his house to make a good living. We have trained and set people up who have gone solo, make a good living, and it would cost a lot less than £40k.

If he wants to sell a physical product, rather than a service there are many "Green" options available, ranging from low cost, quick payback to high cost/value projects. I'd beware of anything that relies too much on government grants/support, remember HIPS

If he likes clothing/fashion, maybe work as a fashion agent - something like www.mad-fashion.com (my business too). Find new or overseas brands and bring them into the UK market and into stores. More risky, slower, but if you discover the next Replay jeans, very worthwhile.

Otherwise find something in Europe, that has a market in the UK (preferably a large one), become an exclusive agent and sell it. Something like www.euglass.com

Happy to talk about the energy, any time.

 

[AsifDilshad]

As you said he successfully ran a clothing store, he can start one now as well. His old experience and connection will be helpful to start again. He can start with physical store and move in web to capture wider audience. it probably cost far less than he currently have.

 

[sirearl]

As you said he successfully ran a clothing store, he can start one now as well. His old experience and connection will be helpful to start again. He can start with physical store and move in web to capture wider audience. it probably cost far less than he currently have.

Do you know how much it costs to start a bricks and mortar.

Far cheaper to start selling on the web and not loose his nest egg,

 

[The Byre]

Thanks so far and thanks to those that have PM'ed me with offers, all of which will be forwarded to my friend.

But so far, nothing seems to make me go "Wow! That's the one! Brilliant!"

Some of the PM'ed stuff looks promising, but we shall see what he goes for, if anything!

 

[aleks-dlm]

i'm not sure that it will be the best idea, but still...

He can buy online clothing store with income. It's not gonna cost to much, but income will be small as well. After he can increase web-store income with companies who specialized in internet marketing or freelancer(way cheaper, but more risk).

It's not cheapest idea, It's just one of the ways how to start in his age. And if all this steps done correctly, he didn't even spend half of its budget.

 

[Pish_Pash]

I'd suggest he takes out a 7 day free trial on Terrapeak towards finding out about stuff that's in demand on ebay. In my opinion, any niche sells (& typically means lower volume, higher margin - which lends itself well to being based in a flat!)- of course the problem is finding a niche that isn't served well already.

I'd also suggest he sells stuff that's physically small (again this is becuase he's in a small flat) & just get online using this flat as his storeroom & ignore his rental agreement (I did...truth be told, most people work from home nowadays & all that stock could just be samples etc - I can't see any letting agent getting hot under the collar about using a room as an office nowadays - even if they did, I'd imagine all they'd do is say "stop doing that" - it's not as if they'll make him homeless).

After losing my job a year or two ago, I started pretty much from nothing from my rented property (still here - renting...my dining room is my global empire & stock room!). Thankfully, I'd a lot more than £40k available, but regardless, it can easily be done for £40k.... it costs almost zilch to get a website online nowadays &, Ebay / Amazon offer an instant 'millions of customers ready to buy' via their marketplaces ...so most of the £40k can be used for stock (obviously starting small to test the waters but gearing up once you've proved the concept).

What I would say though is...try & avoid sourcing from China - it's what everyone & their uncle is doing (& you'll never beat Chinese sellers themselves) ...go a bit more off piste

 

[The Byre]

Any other bright (or sell bright) ideas?

 

[KeithGreen]

Might be worth looking on business for sale websites e.g. businessesforsale.com or daltonsbusiness.com . Not necessarily to buy a business but for some ideas on what to do or offer.
Perhaps the franchise for sale websites as well.
Has he considered being a sales agent? Try agentbase.co.uk