€50k to start a new business? Any ideas?

Sobanek

Hey there guys, I'm actually writing this on behalf of my friend, who's lucky enough to get €50k.

He's currently in Poland, but wants to come over to Ireland to start a business (If I'm correct there's no need to pay Corp Tax for the first three years if you start a new business here).

He was thinking about getting into the automotive industry, but thinks it's a bit overcrowded here (maybe a small dealership, car valet company etc.).

Any recommendations?

Thanks in advance.

The Apprentice

Sobanek wrote: »

He was thinking about getting into the automotive industry, but thinks it's a bit overcrowded here (maybe a small dealership, car valet company etc.).

Any recommendations?

Thanks in advance.

If he done a Pest Analysis of his new venture this would basically put the Hiatas on his plans.. Would not recommend this area at all !!!!!

M.umair

It's really difficult to start a big business in 5€,but not impossible you make an setup for online businesss.Just buy domain name or hosting and start work on that.

Sobanek

Another suggestion he's made is an online clothing retail store. He could buy some designer (Ralph Lauren, Calvin Klein, Hilfiger) clothes and sell them online.

BigGrayKettle

I would be extremely weary about someone going into business simply due to having a capital lump sum available. One enters into business (normally) due to recognition of a gap/need/opportunity in a given market.

It is unbelievable how quickly €50k could disappear when starting a new enterprise, and without a solid set of entrepreneurial fundamentals underpinning that enterprise, the business won't survive in the short term,never mind the long term.

I'm in no way saying your friend shouldn't look to open a business, I amjust saying that it is all about the business plan (or even business concept). Having the cash is awesome but that needs to be put to the side for a moment when considering what opportunities may exist.

sandin

Sobanek - I have a brilliant idea and its in the auto industry too.

It won't take huge investment and could be a game changer.

I've already done preliminary work on it and there's no red tape / insurance or any other barriers - it just needs the right person behind it.

I'm in Naas are, so could meet up and give you the bones of the idea.

stapolinhosting

Heres an idea, and it works off-line very well, but ive havent seen anyone really give it a boost (a proper boost) online yet..

Second hand vehicle spare parts (ie. online breakers yard).. I know a few vehicle breakers and they are busy from the second they open their doors to the time they close every single day... but many of their customers have to travel quite a distance to get to them.

What is there was a place people could just click and buy and have a part delivered the next day!

Its very easy to get a new part delivered next day, but new parts are costly, and when you include fitting, its even more costly. I always buy from breakers yards (unless the part HAS to be brand new), and I have never had any trouble with a part that has been properly tested by the breakers yard before they hand it to me. But I would love to be able to just order online... save me 20 miles of driving to do my parts shopping and I would know exactly whats available without having to pick up the phone and wait 20 minutes on the phone while a guy checks the stores for a part.

Just an idea really.. If I had the money I would be looking into it myself.

Overthrow

stapolinhosting wrote: »

Heres an idea, and it works off-line very well, but ive havent seen anyone really give it a boost (a proper boost) online yet..

Second hand vehicle spare parts (ie. online breakers yard).. I know a few vehicle breakers and they are busy from the second they open their doors to the time they close every single day... but many of their customers have to travel quite a distance to get to them.

What is there was a place people could just click and buy and have a part delivered the next day!

Its very easy to get a new part delivered next day, but new parts are costly, and when you include fitting, its even more costly. I always buy from breakers yards (unless the part HAS to be brand new), and I have never had any trouble with a part that has been properly tested by the breakers yard before they hand it to me. But I would love to be able to just order online... save me 20 miles of driving to do my parts shopping and I would know exactly whats available without having to pick up the phone and wait 20 minutes on the phone while a guy checks the stores for a part.

Just an idea really.. If I had the money I would be looking into it myself.

partfinder.ie allow breakers to contact you with offers on parts that you need. The time I did it, the breaker had it delivered to me for an extra €12 or something.

stapolinhosting

Overthrow wrote: »

partfinder.ie allow breakers to contact you with offers on parts that you need. The time I did it, the breaker had it delivered to me for an extra €12 or something.

Ah yeah, forgot about that site. But you still have to call them and there is not alot of info about whats actually available from who. Some of the parts places list dont have websites, but again, for most you cant just click and buy.

Otherwise a good resource for parts.

nacimroc

Vehicle diagnostics that travel. Alot of mechanics, don't have or can't afford the full diagnostic gear and could lose a day travelling to get a car checked. Buy it all (they have advantage with 50k capital) then travel to mechanics garages as requested. Start with 1 van and set of gear but could easily expand.

blzbear

Metal fabrication, laser cutting/welding.... can't get enough of it up here.....

What doesn't make sense in my mind is why someone would want to come to a shrinking economy, where people are spending less and less each year for the last 5 years and invest his money. Perhaps if he was an insightful guy who took advantage of things like that it would be fine, but if hes not here in the first place he is not limited to the limited opportunity in Ireland at the moment!
If I were him I would be looking at the developing economies all around him and using his 50K there. One thing is for sure, it would go a lot further and there's got to be a lot more opportunity in that region right now.

The corporation tax is not applicable I dont think at this point, maybe if he was investing 5mil instead of 50K. If he's gona spend 50K to start off with he needs to make that back plus more before he's liable for tax. After that then he can write off a lot of stuff so he'll still be paying little tax. Maybe when he when he starts to make a decent net profit (which is unlikely in the first year), he can then incorporate his company and take advantage of the corporation tax rule.

sandin

Deleted User wrote: »

What doesn't make sense in my mind is why someone would want to come to a shrinking economy, where people are spending less and less each year for the last 5 years and invest his money. Perhaps if he was an insightful guy who took advantage of things like that it would be fine, but if hes not here in the first place he is not limited to the limited opportunity in Ireland at the moment!
If I were him I would be looking at the developing economies all around him and using his 50K there. One thing is for sure, it would go a lot further and there's got to be a lot more opportunity in that region right now.

The corporation tax is not applicable I dont think at this point, maybe if he was investing 5mil instead of 50K. If he's gona spend 50K to start off with he needs to make that back plus more before he's liable for tax. After that then he can write off a lot of stuff so he'll still be paying little tax. Maybe when he when he starts to make a decent net profit (which is unlikely in the first year), he can then incorporate his company and take advantage of the corporation tax rule.

Entrepreneurs are by default positive people. The recession has seen rents drop 50-70%, staff costs drop, advertising drop and nearly every other cost drop. The expectations are tailored to the current market and therefore most recently set up.businesses have thrived. In my case I now have 42 staff and expect 3.5m turnover this year with circa 250k profit.
- and the business was set up in 2008
T
In the other business I am planning, it will need 150k. Bank will give 50k, i

Fair play to you, some serious growth. I guess it depends on the business and industry your going into. Maybe if its tech related then its all good as this side of things seems to have thrived a lot despite the times. However direct retail to the consumer seems like a bad idea in a shrinking market

eaglej13

ge:Dt him to set up a new political party, thats the only way to make money in this country