Starting a business with 40K dollars
A family friend has recently gotten a lump sum of about 40k and really doesnt want to spend it and instead make it grow. They’ve always dreamt of starting a small business to make ends meet as he’s approaching 56 with no assets, retirement and has just been a driver his whole life (cab, uber)
He’s ran restaurants back in the day but doesnt cook. Anything he would start, I would help set up but for this amount, I honestly dont know what would be the best bang for his buck to build something sustainable and manageable. Just looking for ideas i guess. If you could start over what would you do? What is in demand right now? thanks!!!!!!
If I was your friend. I'd hold right now. Just bank the money and hold.
A second wave could wipe him out in a week. To be honest, it would wipe out quite a few well established businesses also.
Nows the time for looking and learning. Maybe a little thinking, and planning. But definitely not the time to rush in.
Something that doesn’t require taking on overhead or purchasing equipment. $40k is gone so fast you can’t even believe it. Online sales, becoming a distributor for a product that doesn’t require maintaining inventory but just being a presence with an address and local phone. I’m thinking more along the lines of an independent contractor rather than a business owner. Every business owner on here will tell you it’s not what outsiders think it is. I’m the first to write checks and the last to cash them. And when they don’t come in, they still go out.
I'd work on a Venn diagram of sorts, by creating 3 lists (filled as much as possible) 1- list of things he enjoys doing 2-list of things he's good at 3-list of things he can do and people are willing to pay for.
Then look at what crosses all 3 categories and think of what could be done around that. No matter what, I would look at minimizing the investment and run really lean.
Question asked by
May 12, 2020, 2:21:27 PM