Business Ventures

[JsR]

I'm looking for a little advice if anyone is happy to help.

My boyfriend has just graduated from his Master's in Financial Law in January and is struggling to find a decent job. He got a First for his Degree and a First for his Master's and is well educated with good experience, but the job market at the moment is providing difficult. (He does currently have a job, but just a student one from University.)

His brother started a company when he was young and is now a multi-millionaire after working hard etc. He is giving my boyfriend £30,000 to begin his own company and to try and make a go of things for himself and find his feet. All of his family live in Canada while he lives in the UK.

He doesn't want to rush into anything and just blow the money away, so he was asking me for ideas.

I had suggested that as the house prices are falling again, he could consider buying a cheap house, use say £25,000 as the deposit, get a small mortgage and use the rest towards doing the house up and eventually selling it. My Dad is a property developer and said he would assist him and get him cheap labour or help with it himself (obviously I know he is not guaranteed a mortgage etc, but just an idea to get the ball rolling.)

I know all of this is not easy and doesn't come handed on a plate. I've seen the struggles of trying to sell a house for years and I've also seen occasions where £80k profit has been made in 3 months. And I know it won't come easy to him, but at least he is investing the money and not just chipping away at it in his bank account. I also suggested putting it into a fixed rate bond for a year until he fully decides what to do.

His interests are finance/law - specifically anti-money laundering. He knows if the money was mine, I would begin a small hedge fund, but he does not know much about the stock markets and I wouldn't feel comfortable having the responsibility of looking after and investing his £30k for him. I'm a day trader while at University and working for a bank so I know the markets etc, but I don't think it is best suited for himself to create a company on, even if I will be helping him.

He said that the business he develops is something he wants to continue and make his future, something which he will support his family on.

What would you do? Does anyone have any suggestions?

By the way, anything I have mentioned here is JUST an idea and talk at the moment. I would really appreciate any ideas!

 

[motulist]

I had suggested that as the house prices are falling again, he could consider buying a cheap house

And what makes you think that house prices won't wall again? And even if house prices don't fall again, what makes you think that house prices will go up so much soon that you'd be able to make a worthwhile profit on selling the house that you couldn't have made better money on by investing in something else? I am in no way a financial expert, business expert, or investment expert, I just a "normal" person offering my view on the situation.

 

[JsR]

Oh yes I know that. And I know it won't happen overnight and he is not going to make a quick buck in a month. It was merely a suggestion to get him thinking as to what he should consider doing. I don't know they will rise quickly, no-one does, they might not even rise in the next year. But as they are decreasing in value now, he should (or most likely) pay a lower price than 5 years ago and be getting a better deal on the actual price.

He is in now rush to make a big return or anything. It's just something to start him off really.

Thanks for replying by the way

 

[r1ch4rd]

....He got a First for his Degree and a First for his Master's and is well educated with good experience...

What is his experience in? If I was going to start a business I would want it to be related to something I know.

I work in software, so I can imagine starting a software company and I know how they run. I would just have no idea where to start with property, I would guess your boyfriend will be similar (though obviously I don't know him).

 

[JsR]

What is his experience in? If I was going to start a business I would want it to be related to something I know.

I work in software, so I can imagine starting a software company and I know how they run. I would just have no idea where to start with property, I would guess your boyfriend will be similar (though obviously I don't know him).

He worked for a bank in Canada while he was sitting exams in high school and while in the UK he did some intern at Barclays. He has also just passed a solicitors exam last month (which was independent and not through University.)

 

[motulist]

He worked for a bank in Canada while he was sitting exams in high school and while in the UK he did some intern at Barclays. He has also just passed a solicitors exam last month (which was independent and not through University.)

I believe hat you call "high school" is what we yanks call college. It's the schooling that happens between ages around 18-22, right? Anyway, it seems like he's interested in the financial world, so maybe he should do something in the finance industry. For instance, he could found his on credit union. Credit unions are the hip new thing, and credit unions seem to be growing quite fast these days. They are non-profits, but of course the chief operators of the business get paid a commensurate salary. Or at least that's the way I understand it, but again, I'm not a financial industry expert, so don't just take my word for it.

 

[r1ch4rd]

I believe hat you call "high school"

Actually, an English high school would be ages 11-16 (maybe up to 18). I am guessing he went to high school in Canada though, which is more similar to the American system?

 

[snberk103]

1) Agree with motulist, stay away from houses. Especially if you don't do the work yourself (and I mean all of it). An analyst I whose advice I like believes that the era of using your house as a cash machine is over. Too much volatility. Too many people lose their homes when the cash machine breaks. Governments will tighten up the rules to make sure that housing markets stay stable. No more big drops - but also no more big peaks.

2) High School in Canada is basically the same as the US, so grades 9 -12, generally.

3) Consulting. I wonder if there isn't a market for advising small businesses how not to get caught up in anti-laundering laws. With all the new restrictions on banking activities to prevent money laundering, surely there are businesses trying to figure out how to pay overseas suppliers in the most efficient way without having to fill in 18 pages of paperwork and have DNA taken.

Aim for small businesses (big ones will have their own on-site staff) and offer to create the templates (not actually handling the money).

I have no experience with high-finance, so don't know if this is applicable - but perhaps it will spark other ideas.

4) If he knows anything about food, there is a great little food shop for sale here. I'm desperately seeking a buyer 'cause I want them to stick around. Business is good, but there were personal problems - I believe. One of the partners would probably stick around if the right buyer could be found. I'm in Canada so he could be near his family. But we're on an island, so not too close.