what to do with 70k?

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kordun

Free Member
Feb 18, 2012
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  • #1
    I have some savings and received some presents(cash) for my recent wedding and i now have 70k in my bank. I work for myself and make ok money but would like to have some business to run but not sure where to invest this money. Been to many franchise show but stuff that i liked was over 250k and other cheap one were not interesting.
    What would you do with 70k?
     
    B

    british steve

  • #2
    kordun said:
    I have some savings and received some presents(cash) for my recent wedding and i now have 70k in my bank. I work for myself and make ok money but would like to have some business to run but not sure where to invest this money. Been to many franchise show but stuff that i liked was over 250k and other cheap one were not interesting.
    What would you do with 70k?
    Click to expand...

    Sod business - I would buy a Ferrari F430 Spider!
     
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    businessfunding

  • #3
    1. Blow your wedding cash on a business - you'd better start saving for a divorce:D

    In seriousness, the advice I always give in these situations is forget the money and think of a business that suits you; starting point:

    - What do you love
    - What are you good at?
    - What can you do better.

    If your business ticks 2 boxes you are well away..

    Once you have the bones of the plan, decide how much of your £70K you want to LEND your business.
     
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    10032012

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    Mar 10, 2012
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  • #5
    kordun said:
    I have some savings and received some presents(cash) for my recent wedding and i now have 70k in my bank. I work for myself and make ok money but would like to have some business to run but not sure where to invest this money. Been to many franchise show but stuff that i liked was over 250k and other cheap one were not interesting.
    What would you do with 70k?
    Click to expand...
    Do not waste it in a franchise.

    Like with everything you will get overpriced franchises and cheap franchises... You will then get franchises that require you to have 50% owned capital and 50% bank loan (typically £200k+ initial investment) that care about if you stand a chance of failing and damaging their brand... and others who will take a nice fee upfront and ongoing who don't care if you fail and the impact to their brand (usually the typical brands you never heard of but look really professional).

    You want a franchise who cares about their brand and not just looking for new revenue streams from their existing brand.

    You want a franchise who suck (slight exaggeration) at marketing their franchise pitch (i.e. where it sells itself) but good at marketing their brand and not someone with a great written pitch and hard sell attitude who has produced a good logo that you haven't heard of (or no one heard of in that industry).

    You want a franchise ideally where they also run a few locations themselves and not a franchise which is just effectively leasing a brand (without the goodwill and reputation! etc)

    £70k is a nice sum to begin a business... but you will lose that in franchising without anything to show for it... its better to keep it in the bank with little interest.

    kickstart has a good starting point suggested. If you have a good business idea and willing to have low salary then £70k can seriously go far... if you are clueless, that will get swallowed up quickly by people wanting your money.
     
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    thelegalstop

    thelegalstop

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    Mar 31, 2012
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    London, UK
  • #6
    lol :) Are you seeking advice or just boasting. I hope you discussed that with your wife. Better invest in something which does not require huge investment, but gets you enough profit. The first thing to come up to my mind is for example setting a shared office, like the ones that are very popular now - facilitate an office and take the rent from people- usually freelancers, for using the office.
     
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    Homshaw

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    Apr 18, 2008
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    Darlington
  • #11
    I wouldn't be telling everyone I had 70K. There are people queing up to take it off you

    Also if you spot a good business idea spend what you need not what you have. If you waste it you may live to regret it one day.

    Most franchises are a license to print money - sadly for the franchisor rather than the franchisee. I've seen lots of people's lives ruined with bad franchisors
     
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    british steve

  • #12
    thelegalstop said:
    lol :) Are you seeking advice or just boasting. I hope you discussed that with your wife. Better invest in something which does not require huge investment, but gets you enough profit. The first thing to come up to my mind is for example setting a shared office, like the ones that are very popular now - facilitate an office and take the rent from people- usually freelancers, for using the office.
    Click to expand...

    Would you tell your wife you had £70k sat in the bank? That’s a weekend in London shopping money! The only thing that takes my money quicker than my misses is a petrol pump!
     
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    Rasta Pickles

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    Jun 15, 2010
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    Bristol
  • #13
    Ste Hughes said:
    If it was me I would be buying property and renting it out.
    Click to expand...

    Yep, private 2 bedroomed-places on the rental market around here are snapped up by the council who house their young mums with offspring Britney or Arnie at £800 a month.

    Guaranteed rent, even if the property was worth £150k to begin with (unlikely) it's still > 6% return on your money.
     
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    T

    tkn001

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    Dec 4, 2012
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  • #14
    Really depends on the rest of your assets - depends on what you need...

    - If it's an income, start a business
    - If it's security, get advice and buy bonds / strong equities
    - If it's a hybrid, buy a distressed-seller local resi-property

    Or... If it's a bit of a risk you're after without too much involvement, find a few local co's who need the cash and find a way to make an SEIS compliant investment.

    You're in a great position - and sound like you have a bit of experience already so probably no need for me to repeat the adage about a fool and his money ;)

    Tom
     
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    QuickHomeBuyers

    QuickHomeBuyers

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    Jan 9, 2010
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  • #15
    Rasta Pickles said:
    Yep, private 2 bedroomed-places on the rental market around here are snapped up by the council who house their young mums with offspring Britney or Arnie at £800 a month.

    Guaranteed rent, even if the property was worth £150k to begin with (unlikely) it's still > 6% return on your money.
    Click to expand...

    With interest rate so low talk about 10% plus.
     
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    S

    S-Marketing

  • #22
    british steve said:
    I had a 360 for a while and then sold it. Always regretted selling it! Yes it was a pig but I loved it, that car was my baby.
    Click to expand...


    Some cars are a pain in the backside when you own them, cost a fortune and put you into a mild state of panic when you have to park it somewhere and leave it at the mercy of over enthusiastic door openers. But its always those cars that we regret selling and have the fondest memories of. :)
     
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    K

    kordun

    Free Member
    Feb 18, 2012
    46
    7
  • #23
    Thank you guys for your comments
    I don’t want Ferrari or house as investment. (prefer Lamborghini :))
    Would prefer a business which will bring me money, either as partnership with someone or my own, online or offline business.

    I know franchise could be very risky business but there are some very profitable one too. Brothers friend owns chain of (8) KFC and makes millions. I always liked food business but KFC franchise start from £250k and lots of other fees etc which is not my budget


    Although there is money to be made from properties its very tough out there.
    2 of my mates gave £125k each to builder to buy a plot of land where he built 4 executive homes. 12 months later both of them got their £125k back plus another £70k as profit
     
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    QuickHomeBuyers

    QuickHomeBuyers

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  • #24
    kordun said:
    Thank you guys for your comments
    I don’t want Ferrari or house as investment. (prefer Lamborghini :))
    Would prefer a business which will bring me money, either as partnership with someone or my own, online or offline business.

    I know franchise could be very risky business but there are some very profitable one too. Brothers friend owns chain of (8) KFC and makes millions. I always liked food business but KFC franchise start from £250k and lots of other fees etc which is not my budget


    Although there is money to be made from properties its very tough out there.
    2 of my mates gave £125k each to builder to buy a plot of land where he built 4 executive homes. 12 months later both of them got their £125k back plus another £70k as profit
    Click to expand...

    Easier said than done. You just looked at the profit! Now perhaps time to look at the risks?
     
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    Homshaw

    Free Member
    Apr 18, 2008
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    Darlington
  • #30
    The consensus is that outside of London property has further to fall although long term it has proved to be a good investment in the past.

    The problem is

    • income levels compared to the cost of property are still too low
    • interest rates are low if they rise people will struggle to pay and property prices could fall
    Know nothing about bonds although I've read of some with a known healthy yield to redemption

    I'm sure some equities will do well but which ones? Go to a FA and he will immediately lay claim to 5% of your worldly pocessions and take no responsibility for how they perform.

    Some say commodities are set for a bounce. So Rio Tinto BHP Billiton have a yield and possible capital gains

    Plenty of other high yielding shares. Vodaphone, National grid etc. No guarantee on growth

    Property, Bonds and Equities could bomb or fly. You need to be more specific
     
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    QuickHomeBuyers

    QuickHomeBuyers

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    Jan 9, 2010
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  • #35
    PDRD said:
    Hasn't his theory of 'the property bubble will burst' been going for about 6 years now. Pop over to MSE website and they have a whole forum section for it......

    Time for some people to accept that prices are where they are and to live with it.
    Click to expand...

    Couldn't agree more.

    I understand the frustration of first time buyers but nothing could be done!
     
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    Homshaw

    Free Member
    Apr 18, 2008
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    Darlington
  • #36
    There are reasons for downward pressure on house prices

    Two I've mentioned above plus

    1. bank's reluctance to lend and the level of deposit required
    2. Cuts in Housing benefits especially for under 25s
    Also it isn't so easy for a newbie I know of a number of people where the tennant pays the initial bond. They never pay another penny. After a time delay and legal costs they remove the tennant who trashes the building before he leaves.

    With 70K to invest that is the market you are looking at. You need to know what you are doing

    It's hard to know what to invest in at the moment and I think it depends on the individual
     
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