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Thread: Opening a business, beginning online and eventually brick and mortor

  1. #1
    Veteran Member msmochaxx's Avatar
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    Question Opening a business, beginning online and eventually brick and mortor

    But I dont know what type of business!
    Ive had a handmade/ custom soaps and candles shop online with my friend when we were 17 and it didnt go too well.
    I dont have time to sew things and even if I did I'm still an amateur...
    I have tried to sell things by dropshipping and did ok at one point in time but apparently that was just luck...I never know what will sell since so many people sell the replica handbags/ MAC makeup...
    I'm ok with hair and makeup as well but not confident enough in my ability to do it for money

    I feel the need to hurry up and invest some of my money since I'm finally making a good amount. I need ideas on ways to invest this money! How do I buy a stock and what do I need? How much does stock usually cost? Does anyone have business ideas?
    Tell me what do you see? Thug niggas? Drug dealers? Its a trip...every nigga in this whip got a mothafuckin college degree

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    Default Re: Opening a business, beginning online and eventually brick and mortor

    real estate. buy at tax sales, clean up the title and resell (easy double your money, at least in my market...)

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    Default Re: Opening a business, beginning online and eventually brick and mortor

    Umm, didn't you state that you're in section 8 housing and getting food stamps? Maybe you should invest some of your money into paying your own bills so we taxpayers don't have to foot your "entrepeneur" dreams for you.

    "Buying a stock" and "investing in real estate" succesfully are complex ventures that will require you to do more than post on an internet forum.

    Or, really, if you want to know the secret to getting rich quickly, I have a program for $99,999 dollars, results guaranteed! Turn tat $99,999 into billions!

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    God/dess Zofia's Avatar
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    Default Re: Opening a business, beginning online and eventually brick and mortor

    Quote Originally Posted by msmochaxx View Post
    I feel the need to hurry up and invest some of my money since I'm finally making a good amount. I need ideas on ways to invest this money! How do I buy a stock and what do I need? How much does stock usually cost? Does anyone have business ideas?
    1. Save up until you have six (6) months income in an FDIC insured savings account. Not exciting, or super profitable, you'll be lucky to get 1% interest.

    2. To start investing, I'd read up and even take a Finance class at a local community college. Get an account with someone like Schwab, TD Ameritrade or Edward D. Jones. Good safe companies. As much as I hate the expenses associated with mutual funds, they are a good place to start your investing career.

    3. Stocks are priced all over the map. Avoid penny stocks, as they are exceptionally volatile. Lots of money can be made and lost with slight moves. You want more recognizable companies. Remember, equities are a little slice of a company.

    4. Once you have some experience with mutual funds, start following some stocks. Read their annual reports. Focus on the management discussion of the business. If you can't understand what they do, then it's a sure bet that management does not understand what they do. Avoid those companies like the plague! If you find a company or two that you think you understand, start looking at the numbers. See if there is good long term value there. If so, invest. If not, move on. Investing done well is time consuming. (The tradeoff for not paying some fund manager to do it for you.)

    Good luck!

    Z

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    Veteran Member msmochaxx's Avatar
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    Default Re: Opening a business, beginning online and eventually brick and mortor

    Quote Originally Posted by KS_Stevia View Post
    Umm, didn't you state that you're in section 8 housing and getting food stamps? Maybe you should invest some of your money into paying your own bills so we taxpayers don't have to foot your "entrepeneur" dreams for you.

    "Buying a stock" and "investing in real estate" succesfully are complex ventures that will require you to do more than post on an internet forum.

    Or, really, if you want to know the secret to getting rich quickly, I have a program for $99,999 dollars, results guaranteed! Turn tat $99,999 into billions!
    WHOAAA FUCKING WHOA! You need to ask before you pop off at the mouth and inquire on if I have moved yet or if I am planning on moving. I wont say anything else becausee it will just be giving you the reaction youre looking for. Getting a rise out of me will require you to do more than post on an internet forum
    Tell me what do you see? Thug niggas? Drug dealers? Its a trip...every nigga in this whip got a mothafuckin college degree

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    Banned Melonie's Avatar
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    Default Re: Opening a business, beginning online and eventually brick and mortor

    Agree with Zofia that the first thing needed is 'savings'. This must form the base of working 'capital', or at the very least a 'backstop', for any new business venture.

    Second thing needed will be a good personal credit rating. This will affect the type ( and sometimes fee structure ) of investment / brokerage account you can be approved for ( margin, options, futures ). It will also affect the type ( and definitely fee structure ) of merchant accounts that your business can be approved for ( credit card processing ). The latter is probably more important than you realize, since any business that is forced to pay 10-15% credit card processing fees can't really compete effectively with another business that only needs to pay 3-5% credit card processing fees when selling the same products or services. Where an internet based business is concerned, the extra 7-10% in 'costs of doing business' between a bank based credit card merchant account and a 3rd party based credit card processing service can mean the difference between profit and loss.

    As to being 'in a hurry to invest your money' ... keep in mind that investing also means assuming the risk of LOSING money. With all of the financial turmoil coming out of Europe lately, and with new concerns coming out of Washington, IMHO the present risk versus reward situation with most types of investments is dicey at best.

    ~
    Last edited by Melonie; 11-22-2011 at 04:08 AM.

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    Default Re: Opening a business, beginning online and eventually brick and mortor

    If you're in assisted housing (and handy) then a tax sale fixer for your home is the way to go. A house you own (better than you or an agency paying rent) is a solid way to save and (maybe) build good equity.

    bought my latest cash cow for $3000. Got an offer of 18.

    Savings is definitely #1. Maybe some precious metals

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    Banned Melonie's Avatar
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    Default Re: Opening a business, beginning online and eventually brick and mortor

    Personally speaking, I wouldn't touch Detroit real estate with someone else's 10 foot pole !!! That local real estate market is still declining, in-process foreclosures and 'off balance sheet' bank REO's will provide a huge 'overhang' on the local housing market, lots of now unemployed local residents are leaving, and practically nobody is moving in who can qualify for / afford to play the 'greater fool' where purchasing Detroit real estate is concerned. And to make the situation even worse, the city is cutting services and a property tax increase is absolutely being contemplated.

    Agreed on savings. Enthusiastically agreed on Gold. However, Silver still has a major component of industrial demand, thus future Silver prices will be affected by future industrial activity ( or lack thereof ).

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    Veteran Member msmochaxx's Avatar
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    Default Re: Opening a business, beginning online and eventually brick and mortor

    Quote Originally Posted by pinups4 View Post
    If you're in assisted housing (and handy) then a tax sale fixer for your home is the way to go. A house you own (better than you or an agency paying rent) is a solid way to save and (maybe) build good equity.

    bought my latest cash cow for $3000. Got an offer of 18.

    Savings is definitely #1. Maybe some precious metals
    you bought a HOUSE for $3000??? How many bed and bath? Did you have to do a lot of fixing up on it?
    Tell me what do you see? Thug niggas? Drug dealers? Its a trip...every nigga in this whip got a mothafuckin college degree

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    Banned Melonie's Avatar
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    Default Re: Opening a business, beginning online and eventually brick and mortor

    ^^^ keep in mind that, at those sort of distressed prices, the house will almost certainly not 'measure up' to the codes / standards required to receive a certificate of occupancy. This means that before it could be lived in, or rented, some $50,000+ in repairs would be necessary. However, if the buyer's primary interest is to turn a quick buck ( flipping to another buyer ... who may be planning to tear down the house rather than fixing it ), then the ability to occupy the house isn't a factor.

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    God/dess Zofia's Avatar
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    Default Re: Opening a business, beginning online and eventually brick and mortor

    I should have added after my first point, pay off your existing debts. If you are paying 10% on a credit card (low for most cards) then any investment you make with money that could be used to pay off debt has to return more than 10%! Very high risk/reward territory. Whereas paying off debt has almost no risk.

    HTH
    Z

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    Default Re: Opening a business, beginning online and eventually brick and mortor

    Quote Originally Posted by msmochaxx View Post
    you bought a HOUSE for $3000??? How many bed and bath? Did you have to do a lot of fixing up on it?


    That one is a 2 family, 2 bed/1bath per side. Off street parking, yard. Side 1 needs paint/sprucing jup, 1 windows and a water heater (1000 ish). Other side needs maybe 4k, plus within 4 yrs the roof will need doing. Figure 10k for all.

    Renting both, 1100/mo gross. Taking 30% maint/vacancy and 100/mo/unit profit, its value is about 40-50

    Other buys(prove this isn't a fluke):
    Single and double for 6, single is a shell I sold for 5 the double had one side rented at 500/mo, the other side fixed up for 3k,renting for 600

    That property is valued 50-60, as it should be renting at 1200, not 11

    Another buy, half of a 2 fam for 3k, sold it untouched (needs roof, plumbing, everything for 13.

    Another buy, triple, needs everything, paid 10, selling now for 18

    And according to local code officers, our units are in the "upper third" in quality of similar units.

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    Default Re: Opening a business, beginning online and eventually brick and mortor

    If you are paying 10% on a credit card (low for most cards) then any investment you make with money that could be used to pay off debt has to return more than 10%!
    ^^^ This is an extremely important point which bears amplification. Investment earnings are taxable, even if the tax rate qualifies for capital gains tax treatment at 15%. And interest payments must be paid from after-tax earnings ... earnings that are potentially subject to ~25% tax treatment as 'ordinary income'. Putting some numbers together ...

    Paying off $1000 in credit card debt actually avoids a $100 annual interest payment ( again assuming your 'low interest' 10% simple interest credit card example ). In order to be able to make that $100 interest payment, $125 in pre-tax 'ordinary income' is necessary. Or in order to achieve $100 of after tax invesment earnings to make that interest payment, $115 in pre-tax 'dividend income' is necessary.

    There isn't ANY 'safe' investment vehicle available that can offer an 11.5% to 12.5% return on a $1000 investment that would be equal, net of taxes, to 'investing' in the payoff of the outstanding $1000 credit card balance. And if you start talking about more typical credit card terms, i.e. a 14-18% interest rate that is compounded monthly or daily, the effective return on 'investment' is even higher !!!

    ~
    Last edited by Melonie; 11-24-2011 at 07:57 AM.

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    Default Re: Opening a business, beginning online and eventually brick and mortor

    Absolutely, eliminate any debt that isn't MAKING YOU MONEY . Even debt that is should go, but certainly credit cards and other unsecured/personal debt goes. But if you have no savings, I would say 60% to paying off debt, 40% to savings. If you run out of money/lose job/get hurt, there are things a credit card can't buy (like rent)

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