I would start a Magazine business that costs less than $1,000.
I would develop a business plan using very specific targets for what I want to achieve with the initial investment.
Meanwhile I would place 80% of the remaining money in low-risk investments and 20% in high risk.
Based on the initial results, I would likely look to start a 2nd business with $5k-$10k investment.
ideally this investment would come from the profits of the 1st business (and not require a withdrawal from any of the investments). I would continue to cultivate the initial business (if it has been fruitful), while launching the 2nd business. Again, I would develop a business plan for the new business using very specific targets for what I want to achieve.
5-Year Target (ideal, not guaranteed)
- Initial business (based on $1,000 investment) - business has been in existence for at least 4 years, it is on track to bring in annual profit of $10,000 in 5th year.
- 2nd business (based on $5k-$10k investment) - business has been in existence for at least 2 years, it is on track to bring in annual profit of $20,000 in 3rd year.
- Investments (based on remaining $39k from initial allocation) - Achieved overall increase of approximately $11,000. Using initial structure of 80% of funds in low-risk investment with modest growth ($4k increase on initial $31k); 20% of funds in high-risk investment has roughly doubled ($8k has become $15k+).
This is what I would consider to be a fairly conservative approach, with a top priority of increasing overall net value of the amount of money available.
Source: Quora
Comments
Post a Comment