Have $600k and looking to buy a business.

[dreamshaper]

Hey guys,

Recently my family sold some property and among brothers we have about 1 million in liquid assets. I am located in Sydney and I am looking to buy an established business but I am also open to any ideas for a new business idea such as Jacks. Something perhaps we could replicate.

the brothers expertise are

1st: CA qualified working as Finance analyst
2nd: Masters in pharmacy
3rd: Accountant
4th: B. Comp science
5th: Systems Admin.
Me: Law/Finance

Now the money is not connected to any one person and is not critical to our lives but that being said, I want something fairly safe for beginner entrepreneur. So what do you guys think I should do and do you have any ideas on where to invest the money and any outstanding businesses which could be up for sale. I would really appreciate any help Thank you

 

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[randomnumber314]

Split the money evenly. Sit on your money until you find a solution people are willing to pay you to stop a problem. You could buy someone else's business...but then you'd miss the fun part of learning how to run it.

 

[dreamshaper]

Thanks for the reply...that seems the right thing to do but once the money is divided, it isnt easy to pool it together again. Sydney is ripe for a solid business....perhaps something that has been done in europe or america which could be replicated here in Australia. My thinking is along those lines...

 

[randomnumber314]

I don't know you or your family, but the chances of 6 brothers all investing in a company, and not squabbling over who's doing more, who's in charge, and who should get the most pay are generally slim. Besides that some people take business too serious and when money gets tight, or someone wants out, or the whole thing fails...it can ruin relationships for good.

If you want the whole pot of money for a business I'd see if they'd invest/loan you their share...but still, some people take things too serious and losing $100k will seem like the end of the world.

 

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[PSDSH]

I concur on the thoughts of y'all going your separate ways. I've done partnerships before and they're not easy, not at all! I love my four brothers and would never risk our relationships with a joint business venture. Split the money, or if you must do this, only invest a very small portion of that money on a business and go in with the intention of testing the waters to see if y'all should even be doing business together. Then if it seems to go smoothly, go for it.

 

[Vigilante]

Hey guys,

Recently my family sold some property and among brothers we have about 1 million in liquid assets. I am located in Sydney and I am looking to buy an established business but I am also open to any ideas for a new business idea such as Jacks. Something perhaps we could replicate.

the brothers expertise are

1st: CA qualified working as Finance analyst
2nd: Masters in pharmacy
3rd: Accountant
4th: B. Comp science
5th: Systems Admin.
Me: Law/Finance

Now the money is not connected to any one person and is not critical to our lives but that being said, I want something fairly safe for beginner entrepreneur. So what do you guys think I should do and do you have any ideas on where to invest the money and any outstanding businesses which could be up for sale. I would really appreciate any help Thank you

Have you read the book The Millionaire Fast Lane? You can grab the first few chapters here for free.

 

[tafy]

Wow a partnership of 6 brothers and 600k, I can hardly eat dinner with my brother let alone a business

Take the 100k and forge your own path

 

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[xmartel]

For 6 brothers not to fight and have hurt feelings all trying to run a business is nearly impossible. But if you're going to do it anyway, read the E-Myth by Micheal Gerber. There's a great section in there about how to structure things so that you reduce the risk of stepping on each others toes. All six of you need to read that section if not the whole book and agree on it BEFORE you start.

 

[RHL]

If you have money and don't know what to do with it, you're very likely to lose it. If I were you, rather than starting or buying a company you know very little about, I'd consider fishing around to invest in an established company that might be willing to give you a moderate return on your money as a silent/minority partner.

Narrow your options, understand a field first, then ask more specific questions, which will yield more helpful answers. I'm sorry I can't tell you more now, but I don't want you to get killed. Your money is like Tom Cruise on his first life in Edge of Tomorrow... without the training and experience to know how to get into the field and fight, you're going to get creamed in about 30 seconds. Also, you'll want to read TMF , as Vig stated. That book took me from meandering office drone to reasonably competent businessperson in about five months.

 

[dreamshaper]

Thanks a lot guys. I understand where you guys are coming from....I too have thought about the implications with my brothers and our relationships. No money is worth destroying relationship with brothers but knowing this money is anyone's in particular and is not essential to the livelihoods of the brothers... I think it might be ok.

All the other brother's are working so they won't get involved in the decision making and in any case we have a final mediator- which is dad. Established businesses are around returning 7-15K per week but in saying that I would be buying goodwill and some physical assets. Which is a big risk.

I would much prefer to control a tangible asset such as a freehold hotel or another similar type of property with cashflow. So in case something goes completely wrong the losses would be minimized to a certain degree.

As for the books mentioned, yes I have read e myth and the millionaire Fast lane. I thank you guys for taking the time to reply. Really do appreciate it. So keep the suggestions coming, it really does help a lot in determining my future path.

 

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[dreamshaper]

Oh as for the structure of the business. It most likely would be a company structure which would be owned by a family discretionary trust. Which would allow for considerable tax offsets and other legal benefits.

 

[parkerscott]

Its like shopping. Do you want high risk with a small initial investment? Or do you want low risk with high initial investment? The higher the risk the higher the returns generally. Also I hope that weekly return you are looking for is not profit because I dont see you buying an established business that yields that for the price you have budgeted. If they are offering it, they probably want out of the business or it requires a lot of work etc. Read around a little bit, ask more questions.

 

[The-J]

Take the 100k and forge your own path

That.

Split it evenly and toss it in the bank while you learn how to run a business. If you can't make a profitable business off of $1,000, you probably couldn't do it with $100,000 either.

Don't quit your day job just yet.

 

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[randomnumber314]

I thought about this last night in these terms, "how do I explain how bad of an idea this is to this guy," then it occurred to me. You probably think $100k, or $600k is a lot of money. You probably think this will be the only time in your life you will have access to that amount of money.

If you're thinking like that, stop. Change your mindset from "this is once-in a lifetime money that I have to use to make millions" to, "meh, just another $600k."

In other words, don't justify using this money because you think it's the only chance you have. Make your own money, it's much easier.

 

[jon.a]

I thought about this last night in these terms, "how do I explain how bad of an idea this is to this guy," then it occurred to me. You probably think $100k, or $600k is a lot of money. You probably think this will be the only time in your life you will have access to that amount of money.

If you're thinking like that, stop. Change your mindset from "this is once-in a lifetime money that I have to use to make millions" to, "meh, just another $600k."

In other words, don't justify using this money because you think it's the only chance you have. Make your own money, it's much easier.

Well said.
I needed that too. Thanks.

 

[dreamshaper]

Thanks for the ideas Guys. I am going to take your advice and portion 80 Percent of the money to residential units and the rest for speculative business. As I said this money is not money which would effect our lifestyle if it was to be lost.

 

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[Choate]

You say what can I do with $600,000 to make money?

I say what can you do with $1,000 to make $600,000 in value?

Here's what I would do:

10 $500 projects
10 $1,000 projectts
5 $5,000 projects
2 $10,000 projects
1 $40,000 project

And after all that, you've only spent $100,000, or 1/6 of your money. The important thing is you've developed a critical eye, critical thinking, a passion for the process, etc. After something fails when you've used up the money, don't dump more into it. Do what you can to add value without the money and if it fizzles out, on to the next one. But don't give up in a week because you can't allocate more money to it - grind it out to see if it will work.

And on top of that, you can sleep well at night.


This method is fairly safe for a beginner entrepreneur.

 

[Rolfp2]

If you're starting something new, I'm sure there's plenty you could look at. If you've traveled around, have you noticed anything interesting, business-wise, that you've seen and thought to yourself "Wow, that would probably do well in Australia.". Just look at things like that and find out if there's a market for it. I'm sure between six minds, you guys can definitely think of something.

 

[SYK]

Seems pretty obvious... Diversify and invest in candies

 

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[Blhhi]

Why not angel invest? All the cool kids are doing it.

https://angel.co/

 

[chrischapman]

If you can't make a profitable business off of $1,000, you probably couldn't do it with $100,000 either.

take the $100k and invest some of it slowly in bootstrapped business ventures over time. That will be one fine business education at worst and get you very rich at best.

 

[Determined2012]

With $600,000 i can structure you for a business but you will need to move your money out,with this funds, we can roll over the gross worth to $13milln, if you are interested you can contact me for further details

Wanted to read your other content after reading this proposal, but this is your first post. Do you mind posting an intro about yourself? (Just out of sheer curiosity) Thanks.

You can put it here: https://www.thefastlaneforum.com/community/forums/introductions-networking.16/

 

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[Kyle Tully]

With $600,000 i can structure you for a business but you will need to move your money out,with this funds, we can roll over the gross worth to $13milln, if you are interested you can contact me for further details

Sounds legit.

 

[codo3500]

I'm in Newcastle, let me know if you want to stack something up Real Estate wise. Duplex's in some areas here are easy, I'm not looking for anything, just happy to give advice. I know guys spending 700k and turning it into 900k within 12 months. Much better than bank interest, and quite safe when you do it right. Once you've done one, the banks will lend you money to do multiple at once, and that's where the real money is.