£500k+ savings - what business to buy ?
Discussion
Returned from nearly 10 years working abroad and really struggling to get a job after a year of looking.
My background is in trading, commercial, MD roles for retailers (including online) and large corporate companies (1,000+ employees).
Probably not helped by the fact that I’m 50 years old (male and stale) and no longer well connected in the UK. Interestingly, I still get contacted about roles in the market I returned from, but I’m 100% committed to staying in the UK.
On the plus side, my house is paid off and I have over £500k in liquid savings (though little or no pension).
I’ve always had the desire to own my own business, but I’m struggling to find anything that really interests me. 99% of the listings on Daltons and Rightbiz seem to be cafes, B&Bs, pubs, or convenience stores, none of which appeal.
I’m thinking more along the lines of small manufacturing or distribution. I’ve even looked into Dyno-Rod franchises (both new and resale).
Any other places to look for businesses for sale, or suggestions for different types of businesses to consider?
Good to hear stories from others who bought or started their own businesses at 50.
Cheers
My background is in trading, commercial, MD roles for retailers (including online) and large corporate companies (1,000+ employees).
Probably not helped by the fact that I’m 50 years old (male and stale) and no longer well connected in the UK. Interestingly, I still get contacted about roles in the market I returned from, but I’m 100% committed to staying in the UK.
On the plus side, my house is paid off and I have over £500k in liquid savings (though little or no pension).
I’ve always had the desire to own my own business, but I’m struggling to find anything that really interests me. 99% of the listings on Daltons and Rightbiz seem to be cafes, B&Bs, pubs, or convenience stores, none of which appeal.
I’m thinking more along the lines of small manufacturing or distribution. I’ve even looked into Dyno-Rod franchises (both new and resale).
Any other places to look for businesses for sale, or suggestions for different types of businesses to consider?
Good to hear stories from others who bought or started their own businesses at 50.
Cheers
Could you start something without risking your capital? Consultancy or some service. Maybe allocate some money for marketing.
Buying a small business would scare me as you don’t know what gremlins are lurking. You could just buy yourself a really hard job and a lot could be happening to inflate the figures.
Buying a small business would scare me as you don’t know what gremlins are lurking. You could just buy yourself a really hard job and a lot could be happening to inflate the figures.
muscatdxb said:
Could you start something without risking your capital? Consultancy or some service. Maybe allocate some money for marketing.
Buying a small business would scare me as you don’t know what gremlins are lurking. You could just buy yourself a really hard job and a lot could be happening to inflate the figures.
Definitely a risk to watch out for, some DD would be required, and potentially a staged payment or handover period with earn out for existing owner.Buying a small business would scare me as you don’t know what gremlins are lurking. You could just buy yourself a really hard job and a lot could be happening to inflate the figures.
Moreplease said:
Returned from nearly 10 years working abroad and really struggling to get a job after a year of looking.
My background is in trading, commercial, MD roles for retailers (including online) and large corporate companies (1,000+ employees).
Probably not helped by the fact that I’m 50 years old (male and stale) and no longer well connected in the UK. Interestingly, I still get contacted about roles in the market I returned from, but I’m 100% committed to staying in the UK.
On the plus side, my house is paid off and I have over £500k in liquid savings (though little or no pension).
I’ve always had the desire to own my own business, but I’m struggling to find anything that really interests me. 99% of the listings on Daltons and Rightbiz seem to be cafes, B&Bs, pubs, or convenience stores, none of which appeal.
I’m thinking more along the lines of small manufacturing or distribution. I’ve even looked into Dyno-Rod franchises (both new and resale).
Any other places to look for businesses for sale, or suggestions for different types of businesses to consider?
Good to hear stories from others who bought or started their own businesses at 50.
Cheers
I would not buy a franchise, personally. In fact I would not buy a business at all with your budget. I would find something that you can do already, or learn to do, and do that. Shooting from the hip, anything from:My background is in trading, commercial, MD roles for retailers (including online) and large corporate companies (1,000+ employees).
Probably not helped by the fact that I’m 50 years old (male and stale) and no longer well connected in the UK. Interestingly, I still get contacted about roles in the market I returned from, but I’m 100% committed to staying in the UK.
On the plus side, my house is paid off and I have over £500k in liquid savings (though little or no pension).
I’ve always had the desire to own my own business, but I’m struggling to find anything that really interests me. 99% of the listings on Daltons and Rightbiz seem to be cafes, B&Bs, pubs, or convenience stores, none of which appeal.
I’m thinking more along the lines of small manufacturing or distribution. I’ve even looked into Dyno-Rod franchises (both new and resale).
Any other places to look for businesses for sale, or suggestions for different types of businesses to consider?
Good to hear stories from others who bought or started their own businesses at 50.
Cheers
Pressure washing wheelie bins, car delivery, buy a trailer and do car collections.
to
Using your business skills to offer paid mentoring, management consultancy, get a sales job (basic and commission, not commission only) which are always available and pay well.
I would NOT do anything where your income is dependent upon the whims or performance of others. I would NOT buy a business with your £500k, you will have to kiss too many frogs and then you'll probably still end up with a frog.
Moreplease said:
Returned from nearly 10 years working abroad and really struggling to get a job after a year of looking.
My background is in trading, commercial, MD roles for retailers (including online) and large corporate companies (1,000+ employees).
Probably not helped by the fact that I’m 50 years old (male and stale) and no longer well connected in the UK. Interestingly, I still get contacted about roles in the market I returned from, but I’m 100% committed to staying in the UK.
On the plus side, my house is paid off and I have over £500k in liquid savings (though little or no pension).
I’ve always had the desire to own my own business, but I’m struggling to find anything that really interests me. 99% of the listings on Daltons and Rightbiz seem to be cafes, B&Bs, pubs, or convenience stores, none of which appeal.
I’m thinking more along the lines of small manufacturing or distribution. I’ve even looked into Dyno-Rod franchises (both new and resale).
Any other places to look for businesses for sale, or suggestions for different types of businesses to consider?
Good to hear stories from others who bought or started their own businesses at 50.
Cheers
These days you don’t really need to buy a business it’s much easier to start one however starting a successful ones another story.My background is in trading, commercial, MD roles for retailers (including online) and large corporate companies (1,000+ employees).
Probably not helped by the fact that I’m 50 years old (male and stale) and no longer well connected in the UK. Interestingly, I still get contacted about roles in the market I returned from, but I’m 100% committed to staying in the UK.
On the plus side, my house is paid off and I have over £500k in liquid savings (though little or no pension).
I’ve always had the desire to own my own business, but I’m struggling to find anything that really interests me. 99% of the listings on Daltons and Rightbiz seem to be cafes, B&Bs, pubs, or convenience stores, none of which appeal.
I’m thinking more along the lines of small manufacturing or distribution. I’ve even looked into Dyno-Rod franchises (both new and resale).
Any other places to look for businesses for sale, or suggestions for different types of businesses to consider?
Good to hear stories from others who bought or started their own businesses at 50.
Cheers
My mantra
Who’d you know
What do you know
What’s your advantage
Why would anyone buy / use from you.
Everyone has an advantage somewhere - leverage that advantage
muscatdxb said:
Could you start something without risking your capital? Consultancy or some service. Maybe allocate some money for marketing.
Buying a small business would scare me as you don’t know what gremlins are lurking. You could just buy yourself a really hard job and a lot could be happening to inflate the figures.
This x 1000000Buying a small business would scare me as you don’t know what gremlins are lurking. You could just buy yourself a really hard job and a lot could be happening to inflate the figures.
I've seen the other side of companies I've worked for being brought out and the fudging / fraud of the figures by the owners was unbelievable.
Echoing others it takes a lot of skill to buy a good business, and those skills are largely acquired by running your own smaller business.
If you can't grow a small business from 5k to 50k revenue, then you def don't have the skills to grow it from 500k ti 5m and it will be time well spent in the apprentice role.
the famous example for someone wanting to open a shop or a cafe is to get a market stall first, you will learn a lot in a matter of days, and if you can't make a success of that, then leap frogging this stage isn't likely to make you a better business operator
If you can't grow a small business from 5k to 50k revenue, then you def don't have the skills to grow it from 500k ti 5m and it will be time well spent in the apprentice role.
the famous example for someone wanting to open a shop or a cafe is to get a market stall first, you will learn a lot in a matter of days, and if you can't make a success of that, then leap frogging this stage isn't likely to make you a better business operator
Are you just looking for something to keep you occupied?
There are ways to create an income with £500k that don't involve any work or hassle.
I mean it is a clichéd trope, but the S&P500 has had average returns of 10% over the past 50 years and the SIPPs and ISAs make investing more attractive. Not telling you to put ALL your money in, I am just giving an example.
A lot of very successful businesses I know of have started by testing the water...buy a few bits and bobs, start almost on a hobby level, watch the demand, see what customers want and tailor to their needs. Doesn't require masses of capital either.
There are ways to create an income with £500k that don't involve any work or hassle.
I mean it is a clichéd trope, but the S&P500 has had average returns of 10% over the past 50 years and the SIPPs and ISAs make investing more attractive. Not telling you to put ALL your money in, I am just giving an example.
A lot of very successful businesses I know of have started by testing the water...buy a few bits and bobs, start almost on a hobby level, watch the demand, see what customers want and tailor to their needs. Doesn't require masses of capital either.
Edited by MattsCar on Friday 2nd May 21:58
Moreplease said:
I have over £500k in liquid savings (though little or no pension).
Another way of looking at it is that you have the level of retirement funds that you should have at your age, and no savings - do you want to take a gamble on that retirement?Could you retire early now and treat any paid work that comes up as a bonus?
Thanks all for the replies.
Sounds like the most sensible approach is to try and win contract / interim work direct (rather than the agency / apply via job ads route), invest some money in this area (building a brand, mkting etc).
There is a romantic (perhaps naive) notion many corporate types my age have, which is to own their own business.
Sounds like the most sensible approach is to try and win contract / interim work direct (rather than the agency / apply via job ads route), invest some money in this area (building a brand, mkting etc).
There is a romantic (perhaps naive) notion many corporate types my age have, which is to own their own business.
Moreplease said:
Returned from nearly 10 years working abroad and really struggling to get a job after a year of looking.
My background is in trading, commercial, MD roles for retailers (including online) and large corporate companies (1,000+ employees).
Probably not helped by the fact that I’m 50 years old (male and stale) and no longer well connected in the UK. Interestingly, I still get contacted about roles in the market I returned from, but I’m 100% committed to staying in the UK.
On the plus side, my house is paid off and I have over £500k in liquid savings (though little or no pension).
I’ve always had the desire to own my own business, but I’m struggling to find anything that really interests me. 99% of the listings on Daltons and Rightbiz seem to be cafes, B&Bs, pubs, or convenience stores, none of which appeal.
I’m thinking more along the lines of small manufacturing or distribution. I’ve even looked into Dyno-Rod franchises (both new and resale).
Any other places to look for businesses for sale, or suggestions for different types of businesses to consider?
Good to hear stories from others who bought or started their own businesses at 50.
Cheers
I'm 53 and in a similar position albeit with pensions rather than cash. Personally I wouldn't risk the fruits of your career, rather, as others have said, leverage your strengths.My background is in trading, commercial, MD roles for retailers (including online) and large corporate companies (1,000+ employees).
Probably not helped by the fact that I’m 50 years old (male and stale) and no longer well connected in the UK. Interestingly, I still get contacted about roles in the market I returned from, but I’m 100% committed to staying in the UK.
On the plus side, my house is paid off and I have over £500k in liquid savings (though little or no pension).
I’ve always had the desire to own my own business, but I’m struggling to find anything that really interests me. 99% of the listings on Daltons and Rightbiz seem to be cafes, B&Bs, pubs, or convenience stores, none of which appeal.
I’m thinking more along the lines of small manufacturing or distribution. I’ve even looked into Dyno-Rod franchises (both new and resale).
Any other places to look for businesses for sale, or suggestions for different types of businesses to consider?
Good to hear stories from others who bought or started their own businesses at 50.
Cheers
The other thing I wrestled with was what actually motivates me and makes me happy and I realised it was a blend of creativity and identifying/ capitalising on opportunities.
As such I'm in the throes of negotiating to become a partner in a local deli having coached and supported the owner over several years building trust between us. It has never felt forced which I think is important as then it simply takes on the feeling of a job.
An exciting position to be in, maybe experiment a bit and see what inspires you.
mikef said:
Moreplease said:
I have over £500k in liquid savings (though little or no pension).
Another way of looking at it is that you have the level of retirement funds that you should have at your age, and no savings - do you want to take a gamble on that retirement?Could you retire early now and treat any paid work that comes up as a bonus?
Also, keep in mind that broadly speaking, a business is generally sold for 5 or 6 times the profit it makes. So at best, you'd be buying a business that makes £100k a year. You thus need to consider the time - and possibly further investment needed to recover not just your initial outlay but and amount more than you would have made had you invested the £500k in a pension.
Like most responses on here, putting what amounts to your pension fund (or a sizeable part of it) in to a business feels very risky.
Personally.... i'd be using the fact you dont have a mortgage and have a decent pension pot to allow you to take on a lower level, less hassle job here than perhaps you would otherwise have aimed for.
OR - set yourself up as an independent consultant / contractor and look for contract roles.
I've been doing that in the IT space for the last 10 years or so. Very lucrative and relatively stress free - particularly when you dont have a large mortgage or pension payment that needs to be paid month in month out.
Granted my roles are in the IT space but i know some form colleagues who are doing similar in other fields.
www.jobserve.co.uk and filter on contract roles would be a good starting point. You can then filter on specific keywords.
Personally.... i'd be using the fact you dont have a mortgage and have a decent pension pot to allow you to take on a lower level, less hassle job here than perhaps you would otherwise have aimed for.
OR - set yourself up as an independent consultant / contractor and look for contract roles.
I've been doing that in the IT space for the last 10 years or so. Very lucrative and relatively stress free - particularly when you dont have a large mortgage or pension payment that needs to be paid month in month out.
Granted my roles are in the IT space but i know some form colleagues who are doing similar in other fields.
www.jobserve.co.uk and filter on contract roles would be a good starting point. You can then filter on specific keywords.
An interesting situation, i found myslef in a similar place last year. I invested the £600k into various secured property developments which returns 12% or more per annum so i've got around £7k per month coming in before I do any work. My background sounds reasonably similar albeit not as senior roles as yourself and I chose to start a business consultancy where I coach business owners along with providing outsourced HR.
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