If you had £100k to invest...
Discussion
What would you do with it?
Ideally looking for an investment that will provide a regular income, Im not too risk averse.
Ive briefly looked at tax free savings etc, but I quite like the idea of investing in a business franchise. Anyone got experience in say, food franchises?
Alternatively, I thought about fitted kitchens/bedrooms ( I have some limited experience in that field). Are there good profits to be made in this line of work?
Thanks in advance
Ideally looking for an investment that will provide a regular income, Im not too risk averse.
Ive briefly looked at tax free savings etc, but I quite like the idea of investing in a business franchise. Anyone got experience in say, food franchises?
Alternatively, I thought about fitted kitchens/bedrooms ( I have some limited experience in that field). Are there good profits to be made in this line of work?
Thanks in advance
Its all about risk and how you'd feel about losing it.
1 - I'd be gutted - Put it in a building society account.
2 - Mortified - Bonds
3 - Distraught - Equities
4 - Severly p1$$ed off - Venture Capital Trusts
5 - Oh Bugger - Directly investing in someone elses business venture.
But I'm no advisor so would say, first off get professional advice!
1 - I'd be gutted - Put it in a building society account.
2 - Mortified - Bonds
3 - Distraught - Equities
4 - Severly p1$$ed off - Venture Capital Trusts
5 - Oh Bugger - Directly investing in someone elses business venture.
But I'm no advisor so would say, first off get professional advice!
You have not made it clear if you intend to work yourself with the investment, for example a franchise, or just sit by and hopefully watch the money grow......
Personally I would not touch any franchise with a bargepole, but if you do decide to go down that route, take lots of independent advise, talk to as many franchisees as possible and look before you leap.....
You should be able to get around 6% gross in a decent internet savings account, not a fortune,(bearing in mind inflation is around 2.4%) but your money is (usually) 100% safe......
Personally I would not touch any franchise with a bargepole, but if you do decide to go down that route, take lots of independent advise, talk to as many franchisees as possible and look before you leap.....
You should be able to get around 6% gross in a decent internet savings account, not a fortune,(bearing in mind inflation is around 2.4%) but your money is (usually) 100% safe......
You couldn't do very much with £100k, but if you could stretch that sum to about £200k you could:
1) Buy a small business making, say, £50k profit per year (25% roi);
2) Ideally a business with some assets on the balance sheet;
3) Ideally a business which has growth potential (possibly the owners tired);
4) Grow the business over 5 years increasing profit by, say, 20% per annum;
5) Sell the business in 5 years for four times profit;
This could give you:
£50k profit year one
£60k profit year two
£75k profit year three
£90k profit year four
£110k profit year five
Total profits = £385k profits
Company sold for £110k X 4 = £440k + £385k = £825k total
And the cherry on the cake is you will only (at the moment) pay 10% Tax on the disposal.
The real secret, of course, is that you'll need to know how to buy, run, improve and sell the company. Otherwise the £200k will be gone and you'll only have the assets in the business.
1) Buy a small business making, say, £50k profit per year (25% roi);
2) Ideally a business with some assets on the balance sheet;
3) Ideally a business which has growth potential (possibly the owners tired);
4) Grow the business over 5 years increasing profit by, say, 20% per annum;
5) Sell the business in 5 years for four times profit;
This could give you:
£50k profit year one
£60k profit year two
£75k profit year three
£90k profit year four
£110k profit year five
Total profits = £385k profits
Company sold for £110k X 4 = £440k + £385k = £825k total
And the cherry on the cake is you will only (at the moment) pay 10% Tax on the disposal.
The real secret, of course, is that you'll need to know how to buy, run, improve and sell the company. Otherwise the £200k will be gone and you'll only have the assets in the business.
srebbe64 said:
You couldn't do very much with £100k, but if you could stretch that sum to about £200k you could:
1) Buy a small business making, say, £50k profit per year (25% roi);
2) Ideally a business with some assets on the balance sheet;
3) Ideally a business which has growth potential (possibly the owners tired);
4) Grow the business over 5 years increasing profit by, say, 20% per annum;
5) Sell the business in 5 years for four times profit;
This could give you:
£50k profit year one
£60k profit year two
£75k profit year three
£90k profit year four
£110k profit year five
Total profits = £385k profits
Company sold for £110k X 4 = £440k + £385k = £825k total
And the cherry on the cake is you will only (at the moment) pay 10% Tax on the disposal.
The real secret, of course, is that you'll need to know how to buy, run, improve and sell the company. Otherwise the £200k will be gone and you'll only have the assets in the business.
If it were only that easy eh!1) Buy a small business making, say, £50k profit per year (25% roi);
2) Ideally a business with some assets on the balance sheet;
3) Ideally a business which has growth potential (possibly the owners tired);
4) Grow the business over 5 years increasing profit by, say, 20% per annum;
5) Sell the business in 5 years for four times profit;
This could give you:
£50k profit year one
£60k profit year two
£75k profit year three
£90k profit year four
£110k profit year five
Total profits = £385k profits
Company sold for £110k X 4 = £440k + £385k = £825k total
And the cherry on the cake is you will only (at the moment) pay 10% Tax on the disposal.
The real secret, of course, is that you'll need to know how to buy, run, improve and sell the company. Otherwise the £200k will be gone and you'll only have the assets in the business.
I may have a go some time in the future if the stock market turns very ugly.
srebbe64 said:
You couldn't do very much with £100k, but if you could stretch that sum to about £200k you could:
1) Buy a small business making, say, £50k profit per year (25% roi);
2) Ideally a business with some assets on the balance sheet;
3) Ideally a business which has growth potential (possibly the owners tired);
4) Grow the business over 5 years increasing profit by, say, 20% per annum;
5) Sell the business in 5 years for four times profit;
This could give you:
£50k profit year one
£60k profit year two
£75k profit year three
£90k profit year four
£110k profit year five
Total profits = £385k profits
Company sold for £110k X 4 = £440k + £385k = £825k total
And the cherry on the cake is you will only (at the moment) pay 10% Tax on the disposal.
The real secret, of course, is that you'll need to know how to buy, run, improve and sell the company. Otherwise the £200k will be gone and you'll only have the assets in the business.
If you can find people willing to sell their business for 4x profits WITH assets and room to grow at 20% p/a you wouldn't need to be asking this question!1) Buy a small business making, say, £50k profit per year (25% roi);
2) Ideally a business with some assets on the balance sheet;
3) Ideally a business which has growth potential (possibly the owners tired);
4) Grow the business over 5 years increasing profit by, say, 20% per annum;
5) Sell the business in 5 years for four times profit;
This could give you:
£50k profit year one
£60k profit year two
£75k profit year three
£90k profit year four
£110k profit year five
Total profits = £385k profits
Company sold for £110k X 4 = £440k + £385k = £825k total
And the cherry on the cake is you will only (at the moment) pay 10% Tax on the disposal.
The real secret, of course, is that you'll need to know how to buy, run, improve and sell the company. Otherwise the £200k will be gone and you'll only have the assets in the business.
dabeeeenster said:
srebbe64 said:
You couldn't do very much with £100k, but if you could stretch that sum to about £200k you could:
1) Buy a small business making, say, £50k profit per year (25% roi);
2) Ideally a business with some assets on the balance sheet;
3) Ideally a business which has growth potential (possibly the owners tired);
4) Grow the business over 5 years increasing profit by, say, 20% per annum;
5) Sell the business in 5 years for four times profit;
This could give you:
£50k profit year one
£60k profit year two
£75k profit year three
£90k profit year four
£110k profit year five
Total profits = £385k profits
Company sold for £110k X 4 = £440k + £385k = £825k total
And the cherry on the cake is you will only (at the moment) pay 10% Tax on the disposal.
The real secret, of course, is that you'll need to know how to buy, run, improve and sell the company. Otherwise the £200k will be gone and you'll only have the assets in the business.
If you can find people willing to sell their business for 4x profits WITH assets and room to grow at 20% p/a you wouldn't need to be asking this question!1) Buy a small business making, say, £50k profit per year (25% roi);
2) Ideally a business with some assets on the balance sheet;
3) Ideally a business which has growth potential (possibly the owners tired);
4) Grow the business over 5 years increasing profit by, say, 20% per annum;
5) Sell the business in 5 years for four times profit;
This could give you:
£50k profit year one
£60k profit year two
£75k profit year three
£90k profit year four
£110k profit year five
Total profits = £385k profits
Company sold for £110k X 4 = £440k + £385k = £825k total
And the cherry on the cake is you will only (at the moment) pay 10% Tax on the disposal.
The real secret, of course, is that you'll need to know how to buy, run, improve and sell the company. Otherwise the £200k will be gone and you'll only have the assets in the business.
Edited by srebbe64 on Sunday 2nd September 23:23
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